State of Illinois
91st General Assembly
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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Senate Amendment 002 ]

91_HB0658sam001

 










                                             LRB9101230KSsbam

 1                     AMENDMENT TO HOUSE BILL 658

 2        AMENDMENT NO.     .  Amend House Bill  658  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The  Mechanics  Lien  Act  is  amended  by
 5    changing Sections 1 and 21 as follows:

 6        (770 ILCS 60/1) (from Ch. 82, par. 1)
 7        Sec.   1.  Any  person  who  shall  by  any  contract  or
 8    contracts,  express  or  implied,  or  partly  expressed   or
 9    implied,  with  the  owner of a lot or tract of land, or with
10    one whom the owner has authorized or knowingly  permitted  to
11    contract,  to improve the lot or tract of land or to manage a
12    structure  thereon,  or  to   furnish   material,   fixtures,
13    apparatus  or  machinery,  forms  or  form  work  used in the
14    process  of  construction  where  cement,  concrete  or  like
15    material is used for the  purpose  of  or  in  the  building,
16    altering,   repairing  or  ornamenting  any  house  or  other
17    building, walk or sidewalk, whether the walk or  sidewalk  is
18    on   the  land  or  bordering  thereon,  driveway,  fence  or
19    improvement or appurtenances to the lot or tract of  land  or
20    connected  therewith,  and  upon,  over  or under a sidewalk,
21    street or alley adjoining; or fill, sod or excavate such  lot
22    or  tract  of land, or do landscape work thereon or therefor;
 
                            -2-              LRB9101230KSsbam
 1    or raise or lower any  house  thereon  or  remove  any  house
 2    thereto, or remove any house or other structure therefrom, or
 3    perform  any  services  or incur any expense as an architect,
 4    structural engineer, professional engineer, land surveyor  or
 5    property manager in, for or on a lot or tract of land for any
 6    such  purpose; or drill any water well thereon; or furnish or
 7    perform labor or services  as  superintendent,  time  keeper,
 8    mechanic,  laborer  or  otherwise, in the building, altering,
 9    repairing or ornamenting of the same;  or  furnish  material,
10    fixtures,  apparatus,  machinery, labor or services, forms or
11    form work used in the process of construction where concrete,
12    cement or like material is used, or drill any water  well  on
13    the  order  of  his  agent, architect, structural engineer or
14    superintendent having charge of the  improvements,  building,
15    altering,  repairing  or  ornamenting  the same; or lease any
16    equipment, with or without an operator, to  a  contractor  of
17    the  owner  of  a parcel of land or a structure for use about
18    the  land  or  structure,  is  known  under  this  Act  as  a
19    contractor, and has a lien upon the  whole  of  such  lot  or
20    tract  of  land and upon adjoining or adjacent lots or tracts
21    of land of such owner  constituting  the  same  premises  and
22    occupied or used in connection with such lot or tract of land
23    as a place of residence or business; and in case the contract
24    relates  to  2 or more buildings, on 2 or more lots or tracts
25    of  land,  upon  all  such  lots  and  tracts  of  land   and
26    improvements  thereon  for  the  amount  due  to him for such
27    material,  fixtures,  apparatus,  machinery,  including   the
28    amount  due  to him or her for the equipment leased, services
29    or labor, and interest at the rate of 10% per annum from  the
30    date the same is due.  This lien extends to an estate in fee,
31    for  life,  for  years,  or  any other estate or any right of
32    redemption, or other interest which the owner may have in the
33    lot or tract of land at the time of making such  contract  or
34    may  subsequently  acquire. The taking of additional security
 
                            -3-              LRB9101230KSsbam
 1    by the contractor or sub-contractor is not a  waiver  of  any
 2    right of lien which he may have by virtue of this Act, unless
 3    made  a  waiver  by  express agreement of the parties and the
 4    waiver is not prohibited by this Act. This lien  attaches  as
 5    of the date of the contract.
 6    (Source: P.A. 86-807; 87-361.)

 7        (770 ILCS 60/21) (from Ch. 82, par. 21)
 8        Sec.  21.  Subject  to the provisions of Section 5, every
 9    mechanic, worker  or  other  person  who  shall  furnish  any
10    materials,  apparatus,  machinery or fixtures, or shall lease
11    any equipment, with or without an  operator,  or  furnish  or
12    perform  services  or  labor  for  the  contractor,  or shall
13    furnish any  material  to  be  employed  in  the  process  of
14    construction  as a means for assisting in the erection of the
15    building or improvement in what is commonly  termed  form  or
16    form  work where concrete, cement or like material is used in
17    whole or in  part,  shall  be  known  under  this  Act  as  a
18    sub-contractor,  and shall have a lien for the value thereof,
19    with interest on such amount from the date the same  is  due,
20    from  the same time, on the same property as provided for the
21    contractor,  and,  also,  as  against   the   creditors   and
22    assignees,  and  personal  and  legal  representatives of the
23    contractor, on the material, fixtures, apparatus or machinery
24    furnished, and on the moneys or other considerations  due  or
25    to  become due from the owner under the original contract. If
26    the legal effect  of  any  contract  between  the  owner  and
27    contractor  is  that  no  lien  or  claim  may  be  filed  or
28    maintained  by  any  one  and the waiver is not prohibited by
29    this Act, such provision  shall  be  binding;  but  the  only
30    admissible  evidence  thereof  as against a sub-contractor or
31    material man, shall be proof of actual notice thereof to  him
32    before  any  labor  or material is furnished by him; or proof
33    that a duly written and signed stipulation  or  agreement  to
 
                            -4-              LRB9101230KSsbam
 1    that  effect  has been filed in the office of the recorder of
 2    the county or counties where the  house,  building  or  other
 3    improvement  is  situated,  prior  to the commencement of the
 4    work upon such  house,  building  or  other  improvement,  or
 5    within  10 days after the execution of the principal contract
 6    or not less than  10  days  prior  to  the  contract  of  the
 7    sub-contractor or material man. The recorder shall record the
 8    same at length in the order of time of its reception in books
 9    provided  by  him  for  that  purpose, and the recorder shall
10    index the same, in the name of the contractor and in the name
11    of the owner, in books kept for that purpose, and also in the
12    tract or abstract book of the tract, lot, or parcel of  land,
13    upon  which  the  house,  building  or  other  improvement is
14    located, and the recorder shall receive therefor a fee,  such
15    as  is  provided  for  the  recording  of  instruments in his
16    office.
17        It shall be  the  duty  of  each  subcontractor  who  has
18    furnished,  or  is  furnishing,  materials  or  labor  for an
19    existing owner-occupied single family residence, in order  to
20    preserve  his  lien, to notify the occupant either personally
21    or by certified mail, return receipt requested, addressed  to
22    the  occupant  or  his  agent of the residence within 60 days
23    from his first furnishing materials  or  labor,  that  he  is
24    supplying  materials  or  labor;  provided, however, that any
25    notice  given  after  60  days  by  the  subcontractor  shall
26    preserve his lien, but only to the extent that the owner  has
27    not  been prejudiced by payments made prior to receipt of the
28    notice.  The notification shall  include  a  warning  to  the
29    owner  that before any payment is made to the contractor, the
30    owner should receive  a  waiver  of  lien  executed  by  each
31    subcontractor who has furnished materials or labor.
32        The  notice  shall  contain  the  name and address of the
33    subcontractor or material man, the date he started to work or
34    to deliver materials, the type of work done and to be done or
 
                            -5-              LRB9101230KSsbam
 1    the type of materials delivered and to be delivered, and  the
 2    name  of the contractor requesting the work. The notice shall
 3    also contain the following warning:
 4                          "NOTICE TO OWNER
 5        The subcontractor providing  this  notice  has  performed
 6    work  for  or  delivered  material  to  your home improvement
 7    contractor.  These services or materials are  being  used  in
 8    the   improvements   to   your   residence  and  entitle  the
 9    subcontractor to file a lien against your  residence  if  the
10    services   or  materials  are  not  paid  for  by  your  home
11    improvement contractor.  A lien waiver will  be  provided  to
12    your  contractor  when the subcontractor is paid, and you are
13    urged to request this waiver from your contractor when paying
14    for your home improvements."
15        Such warning shall be in at  least  10  point  bold  face
16    type.  For purposes of this Section, notice by certified mail
17    is considered served at the time of its mailing.
18        In  no  case,  except  as hereinafter provided, shall the
19    owner be compelled to pay a greater sum for or on account  of
20    the  completion  of such house, building or other improvement
21    than the price or sum stipulated in said original contract or
22    agreement, unless payment be made to the contractor or to his
23    order, in violation  of  the  rights  and  interests  of  the
24    persons intended to be benefited by this act: Provided, if it
25    shall  appear  to  the  court  that  the owner and contractor
26    fraudulently,   and   for   the   purpose    of    defrauding
27    sub-contractors  fixed  an  unreasonably  low  price in their
28    original contract for  the  erection  or  repairing  of  such
29    house,  building  or  other improvement, then the court shall
30    ascertain how much of a  difference  exists  between  a  fair
31    price  for labor and material used in said house, building or
32    other  improvement,  and  the  sum  named  in  said  original
33    contract, and said difference shall be considered a  part  of
34    the  contract  and  be  subject  to  a  lien.  But  where the
 
                            -6-              LRB9101230KSsbam
 1    contractor's statement, made as provided in Section 5,  shows
 2    the  amount  to  be  paid  to  the  sub-contractor,  or party
 3    furnishing material, or the sub-contractor's statement,  made
 4    pursuant  to  Section  22, shows the amount to become due for
 5    material; or notice is given to the  owner,  as  provided  in
 6    Sections 24 and 25, and thereafter such sub-contract shall be
 7    performed,  or  material  to the value of the amount named in
 8    such statements or notice, shall  be  prepared  for  use  and
 9    delivery, or delivered without written protest on the part of
10    the  owner  previous  to  such  performance  or  delivery, or
11    preparation for delivery, then, and in  any  of  such  cases,
12    such   sub-contractor   or   party  furnishing  or  preparing
13    material, regardless of  the  price  named  in  the  original
14    contract,  shall  have  a  lien therefor to the extent of the
15    amount named in such statements or notice. In case of default
16    or abandonment by the contractor, the sub-contractor or party
17    furnishing material, shall have and may enforce his  lien  to
18    the  same  extent  and in the same manner that the contractor
19    may under conditions that arise as provided for in section  4
20    of  this Act, and shall have and may exercise the same rights
21    as are therein provided for the contractor.
22        Any provision in a contract, agreement, or understanding,
23    when payment from a contractor to a subcontractor or supplier
24    is conditioned upon receipt of the  payment  from  any  other
25    party  including  a  private  or public owner, shall not be a
26    defense by the party  responsible  for  payment  to  a  claim
27    brought  under  Section 21, 22, 23, or 28 of this Act against
28    the party.  For the purpose  of  this  Section,  "contractor"
29    also  includes  subcontractor  or supplier. The provisions of
30    Public Act 87-1180  shall  be  construed  as  declarative  of
31    existing law and not as a new enactment.
32    (Source: P.A. 87-361; 87-362; 87-895; 87-1180; 88-45.)

33        Section  99.  Effective date.  This Act takes effect upon
 
                            -7-              LRB9101230KSsbam
 1    becoming law.".

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