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90_SB1734
New Act
770 ILCS 60/1.1 from Ch. 82, par. 1.1
Creates the Subcontractor's Bill of Rights Act. Provides
that a provision in a building and construction contract
making the contract subject to the laws of another State or
requiring litigation, arbitration, or dispute resolution to
take place in another State is void and unenforceable.
Provides for the prompt payment of subcontractors and
suppliers. Provides that the owner shall make monthly
progress payments under the contractor. Provides that the
owner may reserve a retainage from any progress payment.
Amends the Mechanics Lien Act. Provides that the prohibition
against waivers of lien rights does not affect the rights of
a third party who detrimentally relied on the waiver.
Provides that a waiver shall not waive lien rights beyond the
dollar amount stated in the waiver.
LRB9010437MWpc
LRB9010437MWpc
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) Unless a building and construction contract requires
13 otherwise, an owner or an owner's agent may reserve a
14 retainage from any progress payment of an amount not to
15 exceed 5% of the progress payment. An owner or owner's agent
16 may reduce the amount of the retainage and may eliminate the
17 retainage on any monthly payment if, in the owner's opinion,
18 the work is progressing satisfactorily.
19 Section 100. The Mechanics Lien Act is amended by
20 changing Section 1.1 as follows:
21 (770 ILCS 60/1.1) (from Ch. 82, par. 1.1)
22 Sec. 1.1. Waiver of lien rights. An agreement to waive
23 any right to enforce or claim any lien under this Act where
24 the agreement is in anticipation of and in consideration for
25 the awarding of a contract or subcontract, either express or
26 implied, to perform work or supply materials for an
27 improvement upon real property is against public policy and
28 unenforceable. This Section does not prohibit subordination
29 or release of a lien granted under this Act.
30 This Section shall not affect the validity of a lien
31 waiver in the hands of any third party who has detrimentally
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1 relied on, after the work has been fully or partially
2 performed, a lien waiver given by a person furnishing labor,
3 materials, fixtures, or other services; except that, a lien
4 waiver shall not waive lien rights beyond the dollar amount
5 stated in the waiver.
6 (Source: P.A. 87-361.)