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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
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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
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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.)