Public Act 103-0827
 
HB4660 EnrolledLRB103 38254 JRC 68389 b

    AN ACT concerning civil law.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Mechanics Lien Act is amended by changing
Sections 5, 21, and 24 as follows:
 
    (770 ILCS 60/5)  (from Ch. 82, par. 5)
    Sec. 5. Statement of contractor and persons furnishing
labor, services, material, fixtures, apparatus or machinery,
forms or form work notice to owner of owner-occupied
single-family residence waiver; size of type.
    (a) It shall be the duty of the contractor to give the
owner, and the duty of the owner to require of the contractor,
before the owner or the owner's his agent, architect, or
superintendent shall pay or cause to be paid to the contractor
or to the contractor's his order any moneys or other
consideration due or to become due to the contractor, or make
or cause to be made to the contractor any advancement of any
moneys or any other consideration, a statement in writing,
under oath or verified by affidavit, of the names and
addresses of all parties furnishing labor, services, material,
fixtures, apparatus or machinery, or forms or form work and of
the amounts due or to become due to each. Merchants and dealers
in materials only shall not be required to make statements
required in this Section.
    (b) The following shall apply to an owner-occupied
single-family residence:
        (i) Each contractor shall provide the owner or the
    owner's his or her agent, either as part of the contract or
    as a separate printed statement given before the owner or
    the owner's his agent makes the first payment for labor,
    materials, fixtures, or apparatus or machinery, the
    following notice in at least 10 point boldface type:
        "THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT A
    SWORN STATEMENT OF PERSONS FURNISHING LABOR, SERVICES,
    MATERIAL, FIXTURES, APPARATUS OR MACHINERY, OR FORMS OR
    FORM WORK BEFORE ANY PAYMENTS ARE REQUIRED TO BE MADE TO
    THE CONTRACTOR."
        If the owners of the property are persons living
    together, the aforesaid statement is conclusively presumed
    given to each such owners if given to one of them.
        (ii) (Blank). Each subcontractor who has furnished, or
    is furnishing, labor, services, material, fixtures,
    apparatus or machinery, forms or form work in order to
    preserve his lien, shall notify the occupant either
    personally or by certified mail, return receipt requested,
    addressed to the occupant or his agent at the residence
    within 60 days from his first furnishing labor, services,
    material, fixtures, apparatus or machinery, forms or form
    work, of his agreement to do so.
        The notice shall contain the name and address of the
    subcontractor or material man, the date he started to work
    or to deliver materials, the type of work done and to be
    done or the type of labor, services, material, fixtures,
    apparatus or machinery, forms or form work delivered and
    to be delivered, and the name of the contractor requesting
    the work. The notice shall also contain the following
    warning:
    
"NOTICE TO OWNER
         The subcontractor providing this notice has performed
    work for or delivered material to your home improvement
    contractor. These services or materials are being used in
    the improvements to your residence and entitle the
    subcontractor to file a lien against your residence if the
    labor, services, material, fixtures, apparatus or
    machinery, forms or form work are not paid for by your home
    improvement contractor. A lien waiver will be provided to
    your contractor when the subcontractor is paid, and you
    are urged to request this waiver from your contractor when
    paying for your home improvements."
        (iii) (Blank). The statement and the notices required
    by subdivisions (b)(i) and (b)(ii) of this Section shall
    be in at least 10 point boldface type. For purposes of this
    Section, notice by certified mail is considered served at
    the time of its mailing. Any notice given pursuant to
    subdivision (b)(ii) of this Section after 60 days by the
    subcontractor, however, shall preserve his or her lien,
    but only to the extent that the owner has not been
    prejudiced by payments made before receipt of the notice.
(Source: P.A. 94-627, eff. 1-1-06.)
 
    (770 ILCS 60/21)  (from Ch. 82, par. 21)
    Sec. 21. Subcontractor Sub-contractor defined; lien of
subcontractor sub-contractor; notice; size of type; service of
notice; amount of lien; default by contractor.
    (a) Subject to the provisions of Section 5, every
mechanic, worker, or other person who shall furnish any labor,
services, material, fixtures, apparatus or machinery, or forms
or form work for the contractor, or shall furnish any material
to be employed in the process of construction as a means for
assisting in the erection of the building or improvement in
what is commonly termed form or form work where concrete,
cement, or like material is used in whole or in part, shall be
known under this Act as a subcontractor sub-contractor, and
shall have a lien for the value thereof, with interest on such
amount from the date the same is due, from the same time, on
the same property as provided for the contractor, and, also,
as against the creditors and assignees, and personal and legal
representatives of the contractor, on the material, fixtures,
or apparatus or machinery furnished, and on the moneys or
other considerations due or to become due from the owner under
the original contract.
    (b) If the legal effect of a provision in any contract
between the owner and contractor or contractor and
subcontractor is that no lien or claim may be filed or
maintained, or that such contractor's lien shall be
subordinated to the interests of any other party, and the
provision is not prohibited by this Act, such provision shall
be binding if made as part of an agreement not prohibited by
this Act.
    (c) It shall be the duty of each subcontractor who has
furnished, or is furnishing, labor, services, material,
fixtures, apparatus or machinery, or forms or form work for an
existing owner-occupied single family residence, in order to
preserve the subcontractor's his lien, to notify the occupant
either personally or by certified mail, return receipt
requested, addressed to the occupant or the occupant's his
agent of the residence within 60 days from the subcontractor's
his first furnishing labor, services, material, fixtures,
apparatus or machinery, or forms or form work, that the
subcontractor he is supplying labor, services, material,
fixtures, apparatus or machinery, or forms or form work
provided, however, that any notice given after 60 days by the
subcontractor shall preserve the subcontractor's his lien, but
only to the extent that the owner has not been prejudiced by
payments made prior to receipt of the notice. The notification
shall include a warning to the owner that before any payment is
made to the contractor, the owner should receive a waiver of
lien executed by each subcontractor who has furnished labor,
services, material, fixtures, apparatus or machinery, or forms
or form work.
    The notice shall contain the name and address of the
subcontractor or material supplier man, the date the
subcontractor or material supplier he started to work or to
deliver materials, the type of work done and to be done or the
type of labor, services, materials, fixtures, apparatus or
machinery, or forms or form work delivered and to be
delivered, and the name of the contractor requesting the work.
The notice shall also contain the following warning:
"NOTICE TO OWNER
    The subcontractor providing this notice has performed work
for or delivered material to your home improvement contractor.
These services or materials are being used in the improvements
to your residence and entitle the subcontractor to file a lien
against your residence if the labor, services, or materials,
fixtures, apparatus or machinery, or forms or form work are
not paid for by your home improvement contractor. A lien
waiver will be provided to your contractor when the
subcontractor is paid, and you are urged to request this
waiver from your contractor when paying for your home
improvements."
    Such warning shall be in at least 10 point bold face type.
For purposes of this Section, notice by certified mail is
considered served at the time of its mailing.
    (d) In no case, except as hereinafter provided, shall the
owner be compelled to pay a greater sum for or on account of
the completion of such house, building, or other improvement
than the price or sum stipulated in said original contract or
agreement, unless payment be made to the contractor or to the
contractor's his order, in violation of the rights and
interests of the persons intended to be benefited by this Act:
Provided, if it shall appear to the court that the owner and
contractor fraudulently, and for the purpose of defrauding
subcontractors sub-contractors fixed an unreasonably low price
in their original contract for the erection or repairing of
such house, building, or other improvement, then the court
shall ascertain how much of a difference exists between a fair
price for labor, services, material, fixtures, apparatus or
machinery, or forms or form work used in said house, building
or other improvement, and the sum named in said original
contract, and said difference shall be considered a part of
the contract and be subject to a lien. But where the
contractor's statement, made as provided in Section 5, shows
the amount to be paid to the subcontractor sub-contractor, or
party furnishing material, or the subcontractor's
sub-contractor's statement, made pursuant to Section 22, shows
the amount to become due for material; or notice is given to
the owner, as provided in Sections 24 and 25, and thereafter
such subcontractor sub-contract shall be performed, or
material to the value of the amount named in such statements or
notice, shall be prepared for use and delivery, or delivered
without written protest on the part of the owner previous to
such performance or delivery, or preparation for delivery,
then, and in any of such cases, such subcontractor
sub-contractor or party furnishing or preparing material,
regardless of the price named in the original contract, shall
have a lien therefor to the extent of the amount named in such
statements or notice. In case of default or abandonment by the
contractor, the subcontractor sub-contractor or party
furnishing material, shall have and may enforce the
subcontractor's his lien to the same extent and in the same
manner that the contractor may under conditions that arise as
provided for in Section 4 of this Act, and shall have and may
exercise the same rights as are therein provided for the
contractor.
    (e) Any provision in a contract, agreement, or
understanding, when payment from a contractor to a
subcontractor or supplier is conditioned upon receipt of the
payment from any other party including a private or public
owner, shall not be a defense by the party responsible for
payment to a claim brought under Section 21, 22, 23, or 28 of
this Act against the party. For the purpose of this Section,
"contractor" also includes subcontractor or supplier. The
provisions of Public Act 87-1180 shall be construed as
declarative of existing law and not as a new enactment.
(Source: P.A. 98-764, eff. 7-16-14.)
 
    (770 ILCS 60/24)  (from Ch. 82, par. 24)
    Sec. 24. Written notice by subcontractor sub-contractor;
service; when notice not necessary; form of notice.
    (a) Subcontractors Sub-contractors, or parties furnishing
labor, materials, fixtures, apparatus, machinery, or services,
may at any time after making his or her contract with the
contractor, and shall within 90 days after the completion
thereof, or, if extra or additional work or material is
delivered thereafter, within 90 days after the date of
completion of such extra or additional work or final delivery
of such extra or additional material, cause a written notice
of his or her claim and the amount due or to become due
thereunder, to be provided to the owner of record or the owner
of record's agent or architect, or the superintendent having
charge of the building or improvement and to the lending
agency, if known, with the written notice to be sent by: (i)
registered or certified mail, with return receipt requested;
(ii) a nationally recognized delivery company with tracking
service; or (iii) personal service. Notice shall be considered
served at the time the written notice is placed with the
delivery service or in the mail. The , and delivery limited to
addressee only, to or personally served on the owner of record
or his agent or architect, or the superintendent having charge
of the building or improvement and to the lending agency, if
known; and such notice shall not be necessary when the sworn
statement of the contractor or subcontractor provided for
herein shall serve to give the owner notice of the amount due
and to whom due, but where such statement is incorrect as to
the amount, the subcontractor or material man named shall be
protected to the extent of the amount named therein as due or
to become due to him or her. For purposes of this Section,
notice by registered or certified mail is considered served at
the time of its mailing.
    The form of such notice may be as follows: To (name of
owner): You are hereby notified that I have been employed by
(the name of contractor) to (state here what was the contract
or what was done, or to be done, or what the claim is for)
under his or her contract with you, on your property at (here
give substantial description of the property) and that there
was due to me, or is to become due (as the case may be)
therefor, the sum of $.....
    Dated at .... this .... day of ....., .....
(Signature).....
    (b) The serving of notice pursuant to subsection (a) of
this Section shall not constitute an admission by the lien
claimant that its status is that of subcontractor if it is
later determined that the party with whom the lien claimant
contracted was the owner or an agent of the owner.
(Source: P.A. 94-627, eff. 1-1-06.)

Effective Date: 1/1/2025