HB2493eng 93rd General Assembly


HB2493 Engrossed                     LRB093 05938 SJM 11716 b

 1        AN ACT concerning bonds.

 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 2 as follows:

 6        (30 ILCS 550/2) (from Ch. 29, par. 16)
 7        Sec.  2.   Every person furnishing material or performing
 8    labor, either as an individual or as a sub-contractor for any
 9    contractor,  with  the  State,  or  a  political  subdivision
10    thereof where bond or letter of credit shall be  executed  as
11    provided  in  this  Act,  shall have the right to sue on such
12    bond or letter of credit in the name of  the  State,  or  the
13    political subdivision thereof entering into such contract, as
14    the  case  may  be, for his use and benefit, and in such suit
15    the plaintiff shall file a copy of such  bond  or  letter  of
16    credit,  certified  by  the  party or parties in whose charge
17    such bond or letter of credit shall  be,  which  copy  shall,
18    unless execution thereof be denied under oath, be prima facie
19    evidence  of  the  execution  and  delivery  of the original;
20    provided, however, that this Act shall not be taken to in any
21    way make the State,  or  the  political  subdivision  thereof
22    entering  into  such  contract, as the case may be, liable to
23    such sub-contractor, materialman or laborer  to  any  greater
24    extent  than  it  was liable under the law as it stood before
25    the adoption of this Act. Provided, however, that any  person
26    having  a  claim  for  labor, and material as aforesaid shall
27    have no such right of action unless he  shall  have  filed  a
28    verified notice of said claim with the officer, board, bureau
29    or  department  awarding  the contract, within 180 days after
30    the date of the last item of work or the  furnishing  of  the
31    last  item  of  materials, and shall have furnished a copy of
HB2493 Engrossed            -2-      LRB093 05938 SJM 11716 b
 1    such verified notice to the contractor within 10 days of  the
 2    filing of the notice with the agency awarding the contract.
 3        The  claim  shall  be  verified and shall contain (1) the
 4    name and address of the claimant; the business address of the
 5    claimant within this State and if the  claimant  shall  be  a
 6    foreign  corporation  having  no place of business within the
 7    State, the notice shall state the principal place of business
 8    of said corporation and in the case  of  a  partnership,  the
 9    notice  shall  state  the names and residences of each of the
10    partners; (2) the name of the contractor for the  government;
11    (3)  the  name of the person, firm or corporation by whom the
12    claimant  was  employed  or  to  whom  he  or  it   furnished
13    materials;   (4)  the  amount  of  the  claim;  (5)  a  brief
14    description  of  the  public   improvement   sufficient   for
15    identification.
16        No defect in the notice herein provided for shall deprive
17    the claimant of his right of action under this article unless
18    it shall affirmatively appear that such defect has prejudiced
19    the  rights  of  an interested party asserting the same. This
20    remedy is in addition to and independent of any other  rights
21    and  remedies  provided  at  law  or  equity.   A  waiver  of
22    mechanics  lien  rights  shall  not  be  a  waiver  of rights
23    hereunder unless expressly stated in the waiver.
24        Provided, further, that no action shall be brought  until
25    the expiration of 120 days after the date of the last item of
26    work  or the furnishing of the last item of materials, except
27    in cases where the  final  settlement  between  the  officer,
28    board,  bureau or department of municipal corporation and the
29    contractor shall have been made prior to  the  expiration  of
30    the  120  day  period,  in  which  case  action  may be taken
31    immediately following such final settlement;  nor  shall  any
32    action  of  any kind be brought later than 6 months after the
33    acceptance by the State or political subdivision  thereof  of
34    the  building  project  or work. Such action shall be brought
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 1    only in the circuit court  of  this  State  in  the  judicial
 2    circuit in which the contract is to be performed.
 3    (Source: P.A. 86-333.)

 4        Section  99.  Effective date.  This Act takes effect upon
 5    becoming law.