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91_HB0504ham001
LRB9102287DJcdam
1 AMENDMENT TO HOUSE BILL 504
2 AMENDMENT NO. . Amend House Bill 504 by replacing
3 the title with the following:
4 "AN ACT concerning construction equipment, amending named
5 Acts."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Public Construction Bond Act is amended
9 by changing Sections 1 and 2 as follows:
10 (30 ILCS 550/1) (from Ch. 29, par. 15)
11 Sec. 1. Except as otherwise provided by this Act, all
12 officials, boards, commissions or agents of this State, or of
13 any political subdivision thereof in making contracts for
14 public work of any kind to be performed for the State, or a
15 political subdivision thereof shall require every contractor
16 for such work to furnish, supply and deliver a bond to the
17 State, or to the political subdivision thereof entering into
18 such contract, as the case may be, with good and sufficient
19 sureties. The amount of such bond shall be fixed by such
20 officials, boards, commissions, commissioners or agents, and
21 such bond, among other conditions, shall be conditioned for
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1 the completion of the contract, for the payment of material
2 used in such work, and for all labor performed in such work,
3 and for all equipment, including rental equipment, used in
4 the work, whether by subcontractor or otherwise.
5 Each such bond is deemed to contain the following
6 provisions whether such provisions are inserted in such bond
7 or not:
8 "The principal and sureties on this bond agree that all
9 the undertakings, covenants, terms, conditions and agreements
10 of the contract or contracts entered into between the
11 principal and the State or any political subdivision thereof
12 will be performed and fulfilled and to pay all persons, firms
13 and corporations having contracts with the principal or with
14 subcontractors, all just claims due them under the provisions
15 of such contracts for labor performed or materials or
16 equipment furnished in the performance of the contract on
17 account of which this bond is given, when such claims are not
18 satisfied out of the contract price of the contract on
19 account of which this bond is given, after final settlement
20 between the officer, board, commission or agent of the State
21 or of any political subdivision thereof and the principal has
22 been made."
23 The bond required by this Section may be acquired from
24 the company, agent or broker of the contractor's choice. The
25 bond and sureties shall be subject to the right of reasonable
26 approval or disapproval, including suspension, by the State
27 or political subdivision thereof concerned.
28 When other than motor fuel tax funds, federal-aid funds,
29 or other funds received from the State are used, a political
30 subdivision may allow the contractor to provide a
31 non-diminishing irrevocable bank letter of credit, in lieu of
32 the bond required by this Section, on contracts under
33 $100,000 to comply with the requirements of this Section.
34 Any such bank letter of credit shall contain all provisions
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1 required for bonds by this Section.
2 (Source: P.A. 89-518, eff. 1-1-97.)
3 (30 ILCS 550/2) (from Ch. 29, par. 16)
4 Sec. 2. Every person furnishing material or performing
5 labor, either as an individual or as a sub-contractor for any
6 contractor, with the State, or a political subdivision
7 thereof where bond or letter of credit shall be executed as
8 provided in this Act, shall have the right to sue on such
9 bond or letter of credit in the name of the State, or the
10 political subdivision thereof entering into such contract, as
11 the case may be, for his use and benefit, and in such suit
12 the plaintiff shall file a copy of such bond or letter of
13 credit, certified by the party or parties in whose charge
14 such bond or letter of credit shall be, which copy shall,
15 unless execution thereof be denied under oath, be prima facie
16 evidence of the execution and delivery of the original;
17 provided, however, that this Act shall not be taken to in any
18 way make the State, or the political subdivision thereof
19 entering into such contract, as the case may be, liable to
20 such sub-contractor, materialman, equipment provider, or
21 laborer to any greater extent than it was liable under the
22 law as it stood before the adoption of this Act. Provided,
23 however, that any person having a claim for labor, equipment,
24 and material as aforesaid shall have no such right of action
25 unless he shall have filed a verified notice of said claim
26 with the officer, board, bureau or department awarding the
27 contract, within 180 days after the date of the last item of
28 work or the furnishing of the last item of materials or
29 equipment, and shall have furnished a copy of such verified
30 notice to the contractor within 10 days of the filing of the
31 notice with the agency awarding the contract.
32 The claim shall be verified and shall contain (1) the
33 name and address of the claimant; the business address of the
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1 claimant within this State and if the claimant shall be a
2 foreign corporation having no place of business within the
3 State, the notice shall state the principal place of business
4 of said corporation and in the case of a partnership, the
5 notice shall state the names and residences of each of the
6 partners; (2) the name of the contractor for the government;
7 (3) the name of the person, firm or corporation by whom the
8 claimant was employed or to whom he or it furnished materials
9 or equipment; (4) the amount of the claim; (5) a brief
10 description of the public improvement sufficient for
11 identification.
12 No defect in the notice herein provided for shall deprive
13 the claimant of his right of action under this article unless
14 it shall affirmatively appear that such defect has prejudiced
15 the rights of an interested party asserting the same.
16 Provided, further, that no action shall be brought until
17 the expiration of 120 days after the date of the last item of
18 work or the furnishing of the last item of materials or
19 equipment, except in cases where the final settlement between
20 the officer, board, bureau or department of municipal
21 corporation and the contractor shall have been made prior to
22 the expiration of the 120 day period, in which case action
23 may be taken immediately following such final settlement; nor
24 shall any action of any kind be brought later than 6 months
25 after the acceptance by the State or political subdivision
26 thereof of the building project or work. Such action shall be
27 brought only in the circuit court of this State in the
28 judicial circuit in which the contract is to be performed.
29 (Source: P.A. 86-333.)
30 Section 10. The Mechanics Lien Act is amended by
31 changing Sections 1 and 21 as follows:
32 (770 ILCS 60/1) (from Ch. 82, par. 1)
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1 Sec. 1. Any person who shall by any contract or
2 contracts, express or implied, or partly expressed or
3 implied, with the owner of a lot or tract of land, or with
4 one whom the owner has authorized or knowingly permitted to
5 contract, to improve the lot or tract of land or to manage a
6 structure thereon, or to furnish material, fixtures,
7 apparatus or machinery, including rented equipment and
8 roll-off boxes for debris, 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.)
20 (770 ILCS 60/21) (from Ch. 82, par. 21)
21 Sec. 21. Subject to the provisions of Section 5, every
22 mechanic, worker or other person who shall furnish any
23 materials, apparatus, machinery, including rented equipment
24 and roll-off boxes for debris, or fixtures, or furnish or
25 perform services or labor for the contractor, or shall
26 furnish any material to be employed in the process of
27 construction as a means for assisting in the erection of the
28 building or improvement in what is commonly termed form or
29 form work where concrete, cement or like material is used in
30 whole or in part, shall be known under this Act as a
31 sub-contractor, and shall have a lien for the value thereof,
32 with interest on such amount from the date the same is due,
33 from the same time, on the same property as provided for the
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1 contractor, and, also, as against the creditors and
2 assignees, and personal and legal representatives of the
3 contractor, on the material, fixtures, apparatus or machinery
4 furnished, and on the moneys or other considerations due or
5 to become due from the owner under the original contract. If
6 the legal effect of any contract between the owner and
7 contractor is that no lien or claim may be filed or
8 maintained by any one and the waiver is not prohibited by
9 this Act, such provision shall be binding; but the only
10 admissible evidence thereof as against a sub-contractor or
11 material man, shall be proof of actual notice thereof to him
12 before any labor or material is furnished by him; or proof
13 that a duly written and signed stipulation or agreement to
14 that effect has been filed in the office of the recorder of
15 the county or counties where the house, building or other
16 improvement is situated, prior to the commencement of the
17 work upon such house, building or other improvement, or
18 within 10 days after the execution of the principal contract
19 or not less than 10 days prior to the contract of the
20 sub-contractor or material man. The recorder shall record the
21 same at length in the order of time of its reception in books
22 provided by him for that purpose, and the recorder shall
23 index the same, in the name of the contractor and in the name
24 of the owner, in books kept for that purpose, and also in the
25 tract or abstract book of the tract, lot, or parcel of land,
26 upon which the house, building or other improvement is
27 located, and the recorder shall receive therefor a fee, such
28 as is provided for the recording of instruments in his
29 office.
30 It shall be the duty of each subcontractor who has
31 furnished, or is furnishing, materials or labor for an
32 existing owner-occupied single family residence, in order to
33 preserve his lien, to notify the occupant either personally
34 or by certified mail, return receipt requested, addressed to
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1 the occupant or his agent of the residence within 60 days
2 from his first furnishing materials or labor, that he is
3 supplying materials or labor; provided, however, that any
4 notice given after 60 days by the subcontractor shall
5 preserve his lien, but only to the extent that the owner has
6 not been prejudiced by payments made prior to receipt of the
7 notice. The notification shall include a warning to the
8 owner that before any payment is made to the contractor, the
9 owner should receive a waiver of lien executed by each
10 subcontractor who has furnished materials or labor.
11 The notice shall contain the name and address of the
12 subcontractor or material man, the date he started to work or
13 to deliver materials, the type of work done and to be done or
14 the type of materials delivered and to be delivered, and the
15 name of the contractor requesting the work. The notice shall
16 also contain the following warning:
17 "NOTICE TO OWNER
18 The subcontractor providing this notice has performed
19 work for or delivered material to your home improvement
20 contractor. These services or materials are being used in
21 the improvements to your residence and entitle the
22 subcontractor to file a lien against your residence if the
23 services or materials are not paid for by your home
24 improvement contractor. A lien waiver will be provided to
25 your contractor when the subcontractor is paid, and you are
26 urged to request this waiver from your contractor when paying
27 for your home improvements."
28 Such warning shall be in at least 10 point bold face
29 type. For purposes of this Section, notice by certified mail
30 is considered served at the time of its mailing.
31 In no case, except as hereinafter provided, shall the
32 owner be compelled to pay a greater sum for or on account of
33 the completion of such house, building or other improvement
34 than the price or sum stipulated in said original contract or
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1 agreement, unless payment be made to the contractor or to his
2 order, in violation of the rights and interests of the
3 persons intended to be benefited by this act: Provided, if it
4 shall appear to the court that the owner and contractor
5 fraudulently, and for the purpose of defrauding
6 sub-contractors fixed an unreasonably low price in their
7 original contract for the erection or repairing of such
8 house, building or other improvement, then the court shall
9 ascertain how much of a difference exists between a fair
10 price for labor and material used in said house, building or
11 other improvement, and the sum named in said original
12 contract, and said difference shall be considered a part of
13 the contract and be subject to a lien. But where the
14 contractor's statement, made as provided in Section 5, shows
15 the amount to be paid to the sub-contractor, or party
16 furnishing material, or the sub-contractor's statement, made
17 pursuant to Section 22, shows the amount to become due for
18 material; or notice is given to the owner, as provided in
19 Sections 24 and 25, and thereafter such sub-contract shall be
20 performed, or material to the value of the amount named in
21 such statements or notice, shall be prepared for use and
22 delivery, or delivered without written protest on the part of
23 the owner previous to such performance or delivery, or
24 preparation for delivery, then, and in any of such cases,
25 such sub-contractor or party furnishing or preparing
26 material, regardless of the price named in the original
27 contract, shall have a lien therefor to the extent of the
28 amount named in such statements or notice. In case of default
29 or abandonment by the contractor, the sub-contractor or party
30 furnishing material, shall have and may enforce his lien to
31 the same extent and in the same manner that the contractor
32 may under conditions that arise as provided for in section 4
33 of this Act, and shall have and may exercise the same rights
34 as are therein provided for the contractor.
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1 Any provision in a contract, agreement, or understanding,
2 when payment from a contractor to a subcontractor or supplier
3 is conditioned upon receipt of the payment from any other
4 party including a private or public owner, shall not be a
5 defense by the party responsible for payment to a claim
6 brought under Section 21, 22, 23, or 28 of this Act against
7 the party. For the purpose of this Section, "contractor"
8 also includes subcontractor or supplier. The provisions of
9 Public Act 87-1180 shall be construed as declarative of
10 existing law and not as a new enactment.
11 (Source: P.A. 87-361; 87-362; 87-895; 87-1180; 88-45.)
12 Section 99. Effective date. This Act takes effect upon
13 becoming law.".