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91_HB0658ham001
LRB9101230KSksam01
1 AMENDMENT TO HOUSE BILL 658
2 AMENDMENT NO. . Amend House Bill 658 by replacing
3 everything after the enacting clause with the following:
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 this the State,
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
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1 provisions whether such provisions are inserted in such bond
2 or not:
3 "The principal and sureties on this bond agree that all
4 the undertakings, covenants, terms, conditions and agreements
5 of the contract or contracts entered into between the
6 principal and the State or any political subdivision thereof
7 will be performed and fulfilled and to pay all persons, firms
8 and corporations having contracts with the principal or with
9 subcontractors, all just claims due them under the provisions
10 of such contracts for labor performed or materials furnished
11 in the performance of the contract on account of which this
12 bond is given, when such claims are not satisfied out of the
13 contract price of the contract on account of which this bond
14 is given, after final settlement between the officer, board,
15 commission or agent of the State or of any political
16 subdivision thereof and the principal has been made."
17 The bond required by this Section may be acquired from
18 the company, agent or broker of the contractor's choice. The
19 bond and sureties shall be subject to the right of reasonable
20 approval or disapproval, including suspension, by the State
21 or political subdivision thereof concerned.
22 When other than motor fuel tax funds, federal-aid funds,
23 or other funds received from the State are used, a political
24 subdivision may allow the contractor to provide a
25 non-diminishing irrevocable bank letter of credit, in lieu of
26 the bond required by this Section, on contracts under
27 $100,000 to comply with the requirements of this Section.
28 Any such bank letter of credit shall contain all provisions
29 required for bonds by this Section.
30 (Source: P.A. 89-518, eff. 1-1-97.)
31 Section 10. The Mechanics Lien Act is amended by
32 changing Section 1 as follows:
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1 (770 ILCS 60/1) (from Ch. 82, par. 1)
2 Sec. 1. A Any person who shall by any contract or
3 contracts, express or implied, or partly expressed or
4 implied, with the owner of a lot or tract of land, or with
5 one whom the owner has authorized or knowingly permitted to
6 contract, to improve the lot or tract of land or to manage a
7 structure thereon, or to furnish material, fixtures,
8 apparatus or machinery, forms or form work used in the
9 process of construction where cement, concrete or like
10 material is used for the purpose of or in the building,
11 altering, repairing or ornamenting any house or other
12 building, walk or sidewalk, whether the walk or sidewalk is
13 on the land or bordering thereon, driveway, fence or
14 improvement or appurtenances to the lot or tract of land or
15 connected therewith, and upon, over or under a sidewalk,
16 street or alley adjoining; or fill, sod or excavate such lot
17 or tract of land, or do landscape work thereon or therefor;
18 or raise or lower any house thereon or remove any house
19 thereto, or remove any house or other structure therefrom, or
20 perform any services or incur any expense as an architect,
21 structural engineer, professional engineer, land surveyor or
22 property manager in, for or on a lot or tract of land for any
23 such purpose; or drill any water well thereon; or furnish or
24 perform labor or services as superintendent, time keeper,
25 mechanic, laborer or otherwise, in the building, altering,
26 repairing or ornamenting of the same; or furnish material,
27 fixtures, apparatus, machinery, labor or services, forms or
28 form work used in the process of construction where concrete,
29 cement or like material is used, or drill any water well on
30 the order of his agent, architect, structural engineer or
31 superintendent having charge of the improvements, building,
32 altering, repairing or ornamenting the same, is known under
33 this Act as a contractor, and has a lien upon the whole of
34 such lot or tract of land and upon adjoining or adjacent lots
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1 or tracts of land of such owner constituting the same
2 premises and occupied or used in connection with such lot or
3 tract of land as a place of residence or business; and in
4 case the contract relates to 2 or more buildings, on 2 or
5 more lots or tracts of land, upon all such lots and tracts of
6 land and improvements thereon for the amount due to him for
7 such material, fixtures, apparatus, machinery, services or
8 labor, and interest at the rate of 10% per annum from the
9 date the same is due. This lien extends to an estate in fee,
10 for life, for years, or any other estate or any right of
11 redemption, or other interest which the owner may have in the
12 lot or tract of land at the time of making such contract or
13 may subsequently acquire. The taking of additional security
14 by the contractor or sub-contractor is not a waiver of any
15 right of lien which he may have by virtue of this Act, unless
16 made a waiver by express agreement of the parties and the
17 waiver is not prohibited by this Act. This lien attaches as
18 of the date of the contract.
19 (Source: P.A. 86-807; 87-361.)".