96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB2073

 

Introduced 2/20/2009, by Sen. Pamela J. Althoff

 

SYNOPSIS AS INTRODUCED:
 
770 ILCS 60/5   from Ch. 82, par. 5

    Amends the Mechanics Lien Act. Provides that a contractor must place on the face of a contract a statement that it is important that the property owner read and understand his or her duties to the contractor and any subcontractors the contractor uses. Requires that those duties be included in the contract. Provides that a contractor's failure to include the statement on the face of the contract relieves the owner of the property of any legal obligation to pay any subcontractors.


LRB096 10818 AJO 21038 b

 

 

A BILL FOR

 

SB2073 LRB096 10818 AJO 21038 b

1     AN ACT concerning civil law.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Mechanics Lien Act is amended by changing
5 Section 5 as follows:
 
6     (770 ILCS 60/5)  (from Ch. 82, par. 5)
7     Sec. 5. Statement of persons furnishing labor, services,
8 material, fixtures, apparatus or machinery, forms or form work
9 notice to owner of waiver; size of type.
10     (a) It shall be the duty of the contractor to give the
11 owner, and the duty of the owner to require of the contractor,
12 before the owner or his agent, architect, or superintendent
13 shall pay or cause to be paid to the contractor or to his order
14 any moneys or other consideration due or to become due to the
15 contractor, or make or cause to be made to the contractor any
16 advancement of any moneys or any other consideration, a
17 statement in writing, under oath or verified by affidavit, of
18 the names and addresses of all parties furnishing labor,
19 services, material, fixtures, apparatus or machinery, forms or
20 form work and of the amounts due or to become due to each.
21 Merchants and dealers in materials only shall not be required
22 to make statements required in this Section.
23     (b) The following shall apply to an owner-occupied

 

 

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1 single-family residence:
2         (i) Each contractor shall provide the owner or his or
3     her agent, on the face either as part of the contract or as
4     a separate printed statement given before the owner or his
5     agent makes the first payment for labor, materials,
6     fixtures, apparatus or machinery, the following:
7         "THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT A
8     SWORN STATEMENT OF PERSONS OR SUBCONTRACTORS FURNISHING
9     LABOR, SERVICES, MATERIAL, FIXTURES, APPARATUS OR
10     MACHINERY, FORMS OR FORM WORK BEFORE ANY PAYMENTS ARE
11     REQUIRED TO BE MADE TO THE CONTRACTOR."
12         IT IS IMPORTANT THAT YOU READ AND UNDERSTAND THE DUTIES
13     THAT YOU HAVE AS AN OWNER OF THE PROPERTY TO THE CONTRACTOR
14     AND TO ANY SUBCONTRACTOR THAT THE CONTRACTOR USES. THESE
15     DUTIES ARE PRINTED AND INCLUDED IN THIS CONTRACT UNDER THE
16     HEADING NAMED "PROPERTY OWNER'S DUTIES UNDER THE LAW"."
17         If the owners of the property are persons living
18     together, the aforesaid statement is conclusively presumed
19     given to each such owners if given to one of them.
20         (ii) Each subcontractor who has furnished, or is
21     furnishing, labor, services, material, fixtures, apparatus
22     or machinery, forms or form work in order to preserve his
23     lien, shall notify the occupant either personally or by
24     certified mail, return receipt requested, addressed to the
25     occupant or his agent at the residence within 60 days from
26     his first furnishing labor, services, material, fixtures,

 

 

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1     apparatus or machinery, forms or form work, of his
2     agreement to do so.
3         The notice shall contain the name and address of the
4     subcontractor or material man, the date he started to work
5     or to deliver materials, the type of work done and to be
6     done or the type of labor, services, material, fixtures,
7     apparatus or machinery, forms or form work delivered and to
8     be delivered, and the name of the contractor requesting the
9     work. The notice shall also contain the following warning:
10     
"NOTICE TO OWNER
11         The subcontractor providing this notice has performed
12     work for or delivered material to your home improvement
13     contractor. These services or materials are being used in
14     the improvements to your residence and entitle the
15     subcontractor to file a lien against your residence if the
16     labor, services, material, fixtures, apparatus or
17     machinery, forms or form work are not paid for by your home
18     improvement contractor. A lien waiver will be provided to
19     your contractor when the subcontractor is paid, and you are
20     urged to request this waiver from your contractor when
21     paying for your home improvements."
22         (iii) The statement and the notices required by
23     subdivisions (b)(i) and (b)(ii) of this Section shall be in
24     at least 10 point boldface type. For purposes of this
25     Section, notice by certified mail is considered served at
26     the time of its mailing. Any notice given pursuant to

 

 

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1     subdivision (b)(ii) of this Section after 60 days by the
2     subcontractor, however, shall preserve his or her lien, but
3     only to the extent that the owner has not been prejudiced
4     by payments made before receipt of the notice.
5         (iv) The failure of a contractor to include the
6     statement contained in paragraph (i) on the face of the
7     contract relieves the owner of the property of any legal
8     obligation to pay any subcontractors under this Act.
9 (Source: P.A. 94-627, eff. 1-1-06.)