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91_HB0658eng HB0658 Engrossed 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 Section 1 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 thistheState, 11 or a political subdivision thereof shall require every 12 contractor for such work to furnish, supply and deliver a 13 bond to the State, or to the political subdivision thereof 14 entering into such contract, as the case may be, with good 15 and sufficient sureties. The amount of such bond shall be 16 fixed by such officials, boards, commissions, commissioners 17 or agents, and such bond, among other conditions, shall be 18 conditioned for the completion of the contract, for the 19 payment of material used in such work and for all labor 20 performed in such work, whether by subcontractor or 21 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 HB0658 Engrossed -2- LRB9101230KSsb 1 of such contracts for labor performed or materials furnished 2 in the performance of the contract on account of which this 3 bond is given, when such claims are not satisfied out of the 4 contract price of the contract on account of which this bond 5 is given, after final settlement between the officer, board, 6 commission or agent of the State or of any political 7 subdivision thereof and the principal has been made." 8 The bond required by this Section may be acquired from 9 the company, agent or broker of the contractor's choice. The 10 bond and sureties shall be subject to the right of reasonable 11 approval or disapproval, including suspension, by the State 12 or political subdivision thereof concerned. 13 When other than motor fuel tax funds, federal-aid funds, 14 or other funds received from the State are used, a political 15 subdivision may allow the contractor to provide a 16 non-diminishing irrevocable bank letter of credit, in lieu of 17 the bond required by this Section, on contracts under 18 $100,000 to comply with the requirements of this Section. 19 Any such bank letter of credit shall contain all provisions 20 required for bonds by this Section. 21 (Source: P.A. 89-518, eff. 1-1-97.) 22 Section 10. The Mechanics Lien Act is amended by 23 changing Section 1 as follows: 24 (770 ILCS 60/1) (from Ch. 82, par. 1) 25 Sec. 1. AAnyperson who shall by any contract or 26 contracts, express or implied, or partly expressed or 27 implied, with the owner of a lot or tract of land, or with 28 one whom the owner has authorized or knowingly permitted to 29 contract, to improve the lot or tract of land or to manage a 30 structure thereon, or to furnish material, fixtures, 31 apparatus or machinery, forms or form work used in the 32 process of construction where cement, concrete or like HB0658 Engrossed -3- LRB9101230KSsb 1 material is used for the purpose of or in the building, 2 altering, repairing or ornamenting any house or other 3 building, walk or sidewalk, whether the walk or sidewalk is 4 on the land or bordering thereon, driveway, fence or 5 improvement or appurtenances to the lot or tract of land or 6 connected therewith, and upon, over or under a sidewalk, 7 street or alley adjoining; or fill, sod or excavate such lot 8 or tract of land, or do landscape work thereon or therefor; 9 or raise or lower any house thereon or remove any house 10 thereto, or remove any house or other structure therefrom, or 11 perform any services or incur any expense as an architect, 12 structural engineer, professional engineer, land surveyor or 13 property manager in, for or on a lot or tract of land for any 14 such purpose; or drill any water well thereon; or furnish or 15 perform labor or services as superintendent, time keeper, 16 mechanic, laborer or otherwise, in the building, altering, 17 repairing or ornamenting of the same; or furnish material, 18 fixtures, apparatus, machinery, labor or services, forms or 19 form work used in the process of construction where concrete, 20 cement or like material is used, or drill any water well on 21 the order of his agent, architect, structural engineer or 22 superintendent having charge of the improvements, building, 23 altering, repairing or ornamenting the same, is known under 24 this Act as a contractor, and has a lien upon the whole of 25 such lot or tract of land and upon adjoining or adjacent lots 26 or tracts of land of such owner constituting the same 27 premises and occupied or used in connection with such lot or 28 tract of land as a place of residence or business; and in 29 case the contract relates to 2 or more buildings, on 2 or 30 more lots or tracts of land, upon all such lots and tracts of 31 land and improvements thereon for the amount due to him for 32 such material, fixtures, apparatus, machinery, services or 33 labor, and interest at the rate of 10% per annum from the 34 date the same is due. This lien extends to an estate in fee, HB0658 Engrossed -4- LRB9101230KSsb 1 for life, for years, or any other estate or any right of 2 redemption, or other interest which the owner may have in the 3 lot or tract of land at the time of making such contract or 4 may subsequently acquire. The taking of additional security 5 by the contractor or sub-contractor is not a waiver of any 6 right of lien which he may have by virtue of this Act, unless 7 made a waiver by express agreement of the parties and the 8 waiver is not prohibited by this Act. This lien attaches as 9 of the date of the contract. 10 (Source: P.A. 86-807; 87-361.)