[ Back ] [ Bottom ]
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 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
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. A Any person 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.)
[ Top ]