State of Illinois
91st General Assembly
Legislation

   [ Search ]   [ Legislation ]
[ Home ]   [ Back ]   [ Bottom ]



91_SB0743

 
                                               LRB9105875DJcd

 1        AN ACT concerning subcontractors rights.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.   Short  title.  This Act may be cited as the
 5    Subcontractor's Bill of Rights Act.

 6        Section 5.  Definitions.  In this Act:
 7        "Building and construction contract" means a contract for
 8    the design, construction, alteration, improvement, repair, or
 9    maintenance of real property, highways, roads, or bridges.

10        Section 10.  Application of laws  of  another  State.   A
11    provision  contained  in  or  executed  in  connection with a
12    building  and  construction  contract  to  be  performed   in
13    Illinois  that  makes  the  contract  subject  to the laws of
14    another State or that requires any  litigation,  arbitration,
15    or  dispute  resolution  to  take  place  in another State is
16    against  public  policy.   Such  a  provision  is  void   and
17    unenforceable.

18        Section  15. Prompt payment.  A building and construction
19    contract  shall  require  the  prime   contractor   and   all
20    subcontractors  to pay any subcontractor or material supplier
21    within  10  business  days  after  the  prime  contractor  or
22    subcontractor receives payment from the owner or the  owner's
23    agent  for  undisputed  amounts  for  service  provided  by a
24    subcontractor or  materials  provided  by  a  supplier.   The
25    contract   shall   require   that  the  prime  contractor  or
26    subcontractor pay interest under the Mechanics  Lien  Act  on
27    any  undisputed amount not paid within 10 business days after
28    payment is received from  the  owner  or  owner's  agent.   A
29    subcontractor  or  supplier who prevails in a civil action to
 
                            -2-                LRB9105875DJcd
 1    collect the interest shall be awarded  its  costs  and  fees,
 2    including  but  not  limited  to attorney's fees, incurred in
 3    enforcing this Section.

 4        Section 20.  Progress payments and retainages.
 5        (a)  Unless a building and construction contract requires
 6    otherwise, the owner or other person  making  payments  under
 7    the  contract shall make monthly progress payments.  Payments
 8    shall be based upon reasonable estimates of work completed as
 9    approved by the owner  or  the  owner's  agent.   A  progress
10    payment shall not be an acceptance of or approval of any work
11    or a waiver of any defects in the work.
12        (b)  An owner or an owner's agent may reserve a retainage
13    from  any  progress  payment of an amount not to exceed 5% of
14    the progress payment.  An owner or owner's agent  may  reduce
15    the  amount  of the retainage and may eliminate the retainage
16    on any monthly payment if, in the owner's opinion,  the  work
17    is progressing satisfactorily.

18        Section  100.   The  Mechanics  Lien  Act  is  amended by
19    changing Section 1.1 as follows:

20        (770 ILCS 60/1.1) (from Ch. 82, par. 1.1)
21        Sec. 1.1.  Waiver of lien rights.  An agreement to  waive
22    any  right  to enforce or claim any lien under this Act where
23    the agreement is in anticipation of and in consideration  for
24    the  awarding of a contract or subcontract, either express or
25    implied,  to  perform  work  or  supply  materials   for   an
26    improvement  upon  real property is against public policy and
27    unenforceable.  This Section does not prohibit  subordination
28    or release of a lien granted under this Act.
29        This  Section  shall  not  affect  the validity of a lien
30    waiver in the hands of any third party who has  detrimentally
31    relied  on,  after  the  work  has  been  fully  or partially
 
                            -3-                LRB9105875DJcd
 1    performed,  a lien waiver given by a person furnishing labor,
 2    materials, fixtures, or other services; except that,  a  lien
 3    waiver  shall  not waive lien rights beyond the dollar amount
 4    stated in the waiver.
 5    (Source: P.A. 87-361.)

[ Top ]