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91_HB0658
LRB9101230KSsb
1 AN ACT concerning construction.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Public Construction Bond Act is amended
5 by changing Sections 1 and 2 as follows:
6 (30 ILCS 550/1) (from Ch. 29, par. 15)
7 Sec. 1. Except as otherwise provided by this Act, all
8 officials, boards, commissions or agents of this State, or of
9 any political subdivision thereof in making contracts for
10 public work of any kind to be performed for the State, or a
11 political subdivision thereof shall require every contractor
12 for such work to furnish, supply and deliver a bond to the
13 State, or to the political subdivision thereof entering into
14 such contract, as the case may be, with good and sufficient
15 sureties. The amount of such bond shall be fixed by such
16 officials, boards, commissions, commissioners or agents, and
17 such bond, among other conditions, shall be conditioned for
18 the completion of the contract, for the payment of material
19 used in such work, and for all labor performed in such work,
20 and for all equipment, including rental equipment, used in
21 the work, whether by subcontractor or otherwise.
22 Each such bond is deemed to contain the following
23 provisions whether such provisions are inserted in such bond
24 or not:
25 "The principal and sureties on this bond agree that all
26 the undertakings, covenants, terms, conditions and agreements
27 of the contract or contracts entered into between the
28 principal and the State or any political subdivision thereof
29 will be performed and fulfilled and to pay all persons, firms
30 and corporations having contracts with the principal or with
31 subcontractors, all just claims due them under the provisions
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1 of such contracts for labor performed or materials or
2 equipment furnished in the performance of the contract on
3 account of which this bond is given, when such claims are not
4 satisfied out of the contract price of the contract on
5 account of which this bond is given, after final settlement
6 between the officer, board, commission or agent of the State
7 or of any political subdivision thereof and the principal has
8 been made."
9 The bond required by this Section may be acquired from
10 the company, agent or broker of the contractor's choice. The
11 bond and sureties shall be subject to the right of reasonable
12 approval or disapproval, including suspension, by the State
13 or political subdivision thereof concerned.
14 When other than motor fuel tax funds, federal-aid funds,
15 or other funds received from the State are used, a political
16 subdivision may allow the contractor to provide a
17 non-diminishing irrevocable bank letter of credit, in lieu of
18 the bond required by this Section, on contracts under
19 $100,000 to comply with the requirements of this Section.
20 Any such bank letter of credit shall contain all provisions
21 required for bonds by this Section.
22 (Source: P.A. 89-518, eff. 1-1-97.)
23 (30 ILCS 550/2) (from Ch. 29, par. 16)
24 Sec. 2. Every person furnishing material or equipment or
25 performing labor, either as an individual or as a
26 sub-contractor for any contractor, with the State, or a
27 political subdivision thereof where bond or letter of credit
28 shall be executed as provided in this Act, shall have the
29 right to sue on such bond or letter of credit in the name of
30 the State, or the political subdivision thereof entering into
31 such contract, as the case may be, for his use and benefit,
32 and in such suit the plaintiff shall file a copy of such bond
33 or letter of credit, certified by the party or parties in
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1 whose charge such bond or letter of credit shall be, which
2 copy shall, unless execution thereof be denied under oath, be
3 prima facie evidence of the execution and delivery of the
4 original; provided, however, that this Act shall not be taken
5 to in any way make the State, or the political subdivision
6 thereof entering into such contract, as the case may be,
7 liable to such sub-contractor, materialman, equipment
8 provider, or laborer to any greater extent than it was liable
9 under the law as it stood before the adoption of this Act.
10 Provided, however, that any person having a claim for labor,
11 equipment, and material as aforesaid shall have no such right
12 of action unless he shall have filed a verified notice of
13 said claim with the officer, board, bureau or department
14 awarding the contract, within 180 days after the date of the
15 last item of work or the furnishing of the last item of
16 materials, and shall have furnished a copy of such verified
17 notice to the contractor within 10 days of the filing of the
18 notice with the agency awarding the contract.
19 The claim shall be verified and shall contain (1) the
20 name and address of the claimant; the business address of the
21 claimant within this State and if the claimant shall be a
22 foreign corporation having no place of business within the
23 State, the notice shall state the principal place of business
24 of said corporation and in the case of a partnership, the
25 notice shall state the names and residences of each of the
26 partners; (2) the name of the contractor for the government;
27 (3) the name of the person, firm or corporation by whom the
28 claimant was employed or to whom he or it furnished
29 materials; (4) the amount of the claim; (5) a brief
30 description of the public improvement sufficient for
31 identification.
32 No defect in the notice herein provided for shall deprive
33 the claimant of his right of action under this article unless
34 it shall affirmatively appear that such defect has prejudiced
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1 the rights of an interested party asserting the same.
2 Provided, further, that no action shall be brought until
3 the expiration of 120 days after the date of the last item of
4 work or the furnishing of the last item of materials or
5 equipment, except in cases where the final settlement between
6 the officer, board, bureau or department of municipal
7 corporation and the contractor shall have been made prior to
8 the expiration of the 120 day period, in which case action
9 may be taken immediately following such final settlement; nor
10 shall any action of any kind be brought later than 6 months
11 after the acceptance by the State or political subdivision
12 thereof of the building project or work. Such action shall be
13 brought only in the circuit court of this State in the
14 judicial circuit in which the contract is to be performed.
15 (Source: P.A. 86-333.)
16 Section 10. The Mechanics Lien Act is amended by
17 changing Sections 1 and 21 as follows:
18 (770 ILCS 60/1) (from Ch. 82, par. 1)
19 Sec. 1. Any person who shall by any contract or
20 contracts, express or implied, or partly expressed or
21 implied, with the owner of a lot or tract of land, or with
22 one whom the owner has authorized or knowingly permitted to
23 contract, to improve the lot or tract of land or to manage a
24 structure thereon, or to furnish material, fixtures,
25 apparatus or machinery, including rented equipment, equipment
26 to the extent it is consumed or damaged during construction,
27 and roll-off boxes for debris, forms or form work used in the
28 process of construction where cement, concrete or like
29 material is used for the purpose of or in the building,
30 altering, repairing or ornamenting any house or other
31 building, walk or sidewalk, whether the walk or sidewalk is
32 on the land or bordering thereon, driveway, fence or
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1 improvement or appurtenances to the lot or tract of land or
2 connected therewith, and upon, over or under a sidewalk,
3 street or alley adjoining; or fill, sod or excavate such lot
4 or tract of land, or do landscape work thereon or therefor;
5 or raise or lower any house thereon or remove any house
6 thereto, or remove any house or other structure therefrom, or
7 perform any services or incur any expense as an architect,
8 structural engineer, professional engineer, land surveyor or
9 property manager in, for or on a lot or tract of land for any
10 such purpose; or drill any water well thereon; or furnish or
11 perform labor or services as superintendent, time keeper,
12 mechanic, laborer or otherwise, in the building, altering,
13 repairing or ornamenting of the same; or furnish material,
14 fixtures, apparatus, machinery, including rented equipment,
15 equipment to the extent it is consumed or damaged during
16 construction, and roll-off boxes for debris, labor or
17 services, forms or form work used in the process of
18 construction where concrete, cement or like material is used,
19 or drill any water well on the order of his agent, architect,
20 structural engineer or superintendent having charge of the
21 improvements, building, altering, repairing or ornamenting
22 the same, is known under this Act as a contractor, and has a
23 lien upon the whole of such lot or tract of land and upon
24 adjoining or adjacent lots or tracts of land of such owner
25 constituting the same premises and occupied or used in
26 connection with such lot or tract of land as a place of
27 residence or business; and in case the contract relates to 2
28 or more buildings, on 2 or more lots or tracts of land, upon
29 all such lots and tracts of land and improvements thereon for
30 the amount due to him for such material, fixtures, apparatus,
31 machinery, services or labor, and interest at the rate of 10%
32 per annum from the date the same is due. This lien extends
33 to an estate in fee, for life, for years, or any other estate
34 or any right of redemption, or other interest which the owner
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1 may have in the lot or tract of land at the time of making
2 such contract or may subsequently acquire. The taking of
3 additional security by the contractor or sub-contractor is
4 not a waiver of any right of lien which he may have by virtue
5 of this Act, unless made a waiver by express agreement of the
6 parties and the waiver is not prohibited by this Act. This
7 lien attaches as of the date of the contract.
8 (Source: P.A. 86-807; 87-361.)
9 (770 ILCS 60/21) (from Ch. 82, par. 21)
10 Sec. 21. Subject to the provisions of Section 5, every
11 mechanic, worker or other person who shall furnish any
12 materials, apparatus, machinery, including rented equipment,
13 equipment to the extent it is consumed or damaged during
14 construction, and roll-off boxes for debris, or fixtures, or
15 furnish or perform services or labor for the contractor, or
16 shall furnish any material to be employed in the process of
17 construction as a means for assisting in the erection of the
18 building or improvement in what is commonly termed form or
19 form work where concrete, cement or like material is used in
20 whole or in part, shall be known under this Act as a
21 sub-contractor, and shall have a lien for the value thereof,
22 with interest on such amount from the date the same is due,
23 from the same time, on the same property as provided for the
24 contractor, and, also, as against the creditors and
25 assignees, and personal and legal representatives of the
26 contractor, on the material, fixtures, apparatus or machinery
27 furnished, and on the moneys or other considerations due or
28 to become due from the owner under the original contract. If
29 the legal effect of any contract between the owner and
30 contractor is that no lien or claim may be filed or
31 maintained by any one and the waiver is not prohibited by
32 this Act, such provision shall be binding; but the only
33 admissible evidence thereof as against a sub-contractor or
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1 material man, shall be proof of actual notice thereof to him
2 before any labor or material is furnished by him; or proof
3 that a duly written and signed stipulation or agreement to
4 that effect has been filed in the office of the recorder of
5 the county or counties where the house, building or other
6 improvement is situated, prior to the commencement of the
7 work upon such house, building or other improvement, or
8 within 10 days after the execution of the principal contract
9 or not less than 10 days prior to the contract of the
10 sub-contractor or material man. The recorder shall record the
11 same at length in the order of time of its reception in books
12 provided by him for that purpose, and the recorder shall
13 index the same, in the name of the contractor and in the name
14 of the owner, in books kept for that purpose, and also in the
15 tract or abstract book of the tract, lot, or parcel of land,
16 upon which the house, building or other improvement is
17 located, and the recorder shall receive therefor a fee, such
18 as is provided for the recording of instruments in his
19 office.
20 It shall be the duty of each subcontractor who has
21 furnished, or is furnishing, materials or labor for an
22 existing owner-occupied single family residence, in order to
23 preserve his lien, to notify the occupant either personally
24 or by certified mail, return receipt requested, addressed to
25 the occupant or his agent of the residence within 60 days
26 from his first furnishing materials or labor, that he is
27 supplying materials or labor; provided, however, that any
28 notice given after 60 days by the subcontractor shall
29 preserve his lien, but only to the extent that the owner has
30 not been prejudiced by payments made prior to receipt of the
31 notice. The notification shall include a warning to the
32 owner that before any payment is made to the contractor, the
33 owner should receive a waiver of lien executed by each
34 subcontractor who has furnished materials or labor.
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1 The notice shall contain the name and address of the
2 subcontractor or material man, the date he started to work or
3 to deliver materials, the type of work done and to be done or
4 the type of materials delivered and to be delivered, and the
5 name of the contractor requesting the work. The notice shall
6 also contain the following warning:
7 "NOTICE TO OWNER
8 The subcontractor providing this notice has performed
9 work for or delivered material to your home improvement
10 contractor. These services or materials are being used in
11 the improvements to your residence and entitle the
12 subcontractor to file a lien against your residence if the
13 services or materials are not paid for by your home
14 improvement contractor. A lien waiver will be provided to
15 your contractor when the subcontractor is paid, and you are
16 urged to request this waiver from your contractor when paying
17 for your home improvements."
18 Such warning shall be in at least 10 point bold face
19 type. For purposes of this Section, notice by certified mail
20 is considered served at the time of its mailing.
21 In no case, except as hereinafter provided, shall the
22 owner be compelled to pay a greater sum for or on account of
23 the completion of such house, building or other improvement
24 than the price or sum stipulated in said original contract or
25 agreement, unless payment be made to the contractor or to his
26 order, in violation of the rights and interests of the
27 persons intended to be benefited by this act: Provided, if it
28 shall appear to the court that the owner and contractor
29 fraudulently, and for the purpose of defrauding
30 sub-contractors fixed an unreasonably low price in their
31 original contract for the erection or repairing of such
32 house, building or other improvement, then the court shall
33 ascertain how much of a difference exists between a fair
34 price for labor and material used in said house, building or
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1 other improvement, and the sum named in said original
2 contract, and said difference shall be considered a part of
3 the contract and be subject to a lien. But where the
4 contractor's statement, made as provided in Section 5, shows
5 the amount to be paid to the sub-contractor, or party
6 furnishing material, or the sub-contractor's statement, made
7 pursuant to Section 22, shows the amount to become due for
8 material; or notice is given to the owner, as provided in
9 Sections 24 and 25, and thereafter such sub-contract shall be
10 performed, or material to the value of the amount named in
11 such statements or notice, shall be prepared for use and
12 delivery, or delivered without written protest on the part of
13 the owner previous to such performance or delivery, or
14 preparation for delivery, then, and in any of such cases,
15 such sub-contractor or party furnishing or preparing
16 material, regardless of the price named in the original
17 contract, shall have a lien therefor to the extent of the
18 amount named in such statements or notice. In case of default
19 or abandonment by the contractor, the sub-contractor or party
20 furnishing material, shall have and may enforce his lien to
21 the same extent and in the same manner that the contractor
22 may under conditions that arise as provided for in section 4
23 of this Act, and shall have and may exercise the same rights
24 as are therein provided for the contractor.
25 Any provision in a contract, agreement, or understanding,
26 when payment from a contractor to a subcontractor or supplier
27 is conditioned upon receipt of the payment from any other
28 party including a private or public owner, shall not be a
29 defense by the party responsible for payment to a claim
30 brought under Section 21, 22, 23, or 28 of this Act against
31 the party. For the purpose of this Section, "contractor"
32 also includes subcontractor or supplier. The provisions of
33 Public Act 87-1180 shall be construed as declarative of
34 existing law and not as a new enactment.
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1 (Source: P.A. 87-361; 87-362; 87-895; 87-1180; 88-45.)