Illinois Only Outline of the Contractor’s Thought Process

I. Is The Owner of the Real Estate A Homeowner ?

A. If “Yes” Are you a General Contractor or Subcontractor ?
B. If you are a “ Subcontractor”, then you need to provide a “ 60 Days Notice”

II. If the Owner of the Real Estate is Not a Homeowner, then

A. Are you a General contractor or Subcontractor or a 2nd Tier Sub Contractor?
B. If you are a Subcontractor or a 2nd Tier Subcontractor, then you need to address the following matters in your Contract:

1. Whether you wish to, or are forced to, incorporated the Terms and Conditions of the Contract between the Owner  and the General Contractor into your Contract;
 
2. Your work may be subject to the Plans and Specifications for the entire Project
 
3. Is there a “no lien” clause in your contract, or in the Contract between the Owner and the General Contractor?- Note: Valid for Public Works and Federally funded Projects.
 
4. Are you required to indemnify any other party to the Work: The Owner, the General Contractor, the Construction Manager, and/or the Architect.

a. Illinois Statues precluded indemnification of a person against his own negligence
 
b. Your insurance, especially your Worker’s Compensation insurance, may preclude coverage against claims by employees of third parties for which you will not be covered if you are required to indemnify the third parties- talk to your insurance agent and then read your policy.

5. Is the work being performed for a “municipality”? If “yes” then no lien is permitted by statue (except in very unusual circumstances), but alternatives may be available.

C. What does the Sub Contractor need to do, vis-à-vis the General Contractor:

1. Obtain the name of the Owner and the Mortgage, the Architect and/or Construction Manager as well as the legal description of the real estate upon which the work is to be performed.
 
2. Is there a Payment and/or Performance Bond? If “yes” then get the name and address of the Insurer, and the Bond Number.
 
3. Is the Sub Contractor included upon the General Contractor’s Sworn Statement?
 
4. Is payment for the Work being made through a Construction Escrow?
 
5. Are Change Orders required by the Contract between the Owner and the General Contractor to be approved by the Owner, the Architect, the Construction Manager, or the General Contractor? If “yes”, verify that the Construction Escrow is kept “in balance” after a change Order is issued.
 
6. Do not start any additional or modified Work until and unless there is written Change Order.
 
7. If there is a dispute as to the acceptability of the work, is the SubContractor required to continue performing the Work pending resolution of any much dispute? If “yes” then (i) does the Owner or the General Contractor have to deposit into a escrow the amount of the disputed Work, and (ii) is the owner required to pay the undisputed amount as a condition of the work proceeding?
 
8. Are disputes subject to Arbitration ? If “yes” then modify the Standart AAA Arbitration Rules
 
9. Is the Work being performed on a building, which the Owner intends to convert into condos? If “yes” then consider whether a “blanket” lien would be sufficient, or whether a lien must be placed on each unit. If “unit liens” are required, then contractor needs to allocate work performed among the various units.

D. Time frame for filing a mechanics lien:

1. Reminder/ Statement of Account within thirty (30) days after Work was last performed.
 
2. Contact your attorney if no payment is received within sixty (60) days after Work was last preformed, so that Notice of Intent to File Mechanics Lien can be filed within ninety (90) days after Work was last preformed.
 
3. If no payment within eighty five (85) days after Work was last preformed, then submit Notice of Intent to File Mechanics Lien, and start preparation of Mechanics Lien.
 
4. If no payment within 115 days after work was last performed, then file/record Mechanics Lien.

E. What happens after Mechanics Lien is filed ?

1. “Thirty (30) day letter” from Owner or General Contractor
 
2. If no “thirty (30) day letter”, then (Sub) Contractor has two (2) years from date the Mechanics Lien is filed to foreclose upon Mechanics Lien
 
3. What will Contractor need to provide to prevail in a foreclosure of a Mechanics Lien.

MECHANICS LIEN TIMELINE SUBCONTRACTOR - ILLINOIS (RESIDENTIAL PROJECT)

OCCUPIED SINGLE FAMILLY RESIDENCE

(a1)  FROM PROJECT START DATE FOR 60 DAYS
Provide 60-days notice letter to occupied living in the real estate upon which you performed work by registered or certified mail.

(b) 90 Days After Last Day Worked
Send notice of intent to file a mechanics lien by registered or certified mail, restricted delivery or personal delivery to the owner, owner’s mortgage holder and contractor.

( c) 120 Days after last day worked
File (i.e. record with the Recorder’s Office of the county in which real estate is located) a mechanics lien within four months of the last day you worked. Thereafter, serve a copy of the recorded subcontractor’s mechanic’s lien upon the owner, owner’s mortgage holder and contractor, by registered or certified mail, restricted delivery or personally delivery the copy. ( This can be recorder earlier but you must wait at least 10 days after sending the 90 days notice)

(e) Owner of Real Estate( against which the Mechanics Lien was recorded) send Demand to  Foreclose Anytime After The Mechanics Lien is Recorded
May be sent any time after the Mechanics Lien is filed.

(f) 30 Days after Demand to Foreclose
File suit to foreclose the recorded mechanic’s lien

(g) Two years after last day worked
From the last day you worked on the project, you must file a mechanic’s lien foreclosure suit within two years of the last day you performed any work on the project.

(h) The Notice Deadline
The public lien claim notice may be filed at any time after work is completed; However, the Notice is effectively only upon project funds in the possession of the government agency. The government agency is required to retain sufficient Project Funds to pay the lien claim for 90 days after service of the notice.

( i) 90 days after the Notice Deadline
Section 23 of the Illinois Mechanic’s Lien Act requires the Subcontractor to file lawsuit to enforce the lien claim within 90 days of delivery of notice of lien claim to the government agency. A copy of the Complaint must be delivered to the Clerk or Secretary of the subject government agency within 90 day period.

SUBCONTRACTORS ARE ADVISED TO CONSULT CONTRACTOR’S LIEN SERVICES IMMEDIATELY UPON SERVING NOTICE OF ANY CLAIM FOR LIEN AGAINST PUBLIC FUNDS

 

Applicable State Requirement Timetables
State	Pre-Lien Notice	Notice of Intent	Lien Notice
Alabama	Required before lien		Within 6 months from last day for Original Contractors Within 4 months for Subs and Material Suppliers.
Alaska	Before Performance		Within 90 days after last performance, if no notice of completion was filed. Within 90 days if notice of completion was filed and contractor gave pre-lien. Within 15 days if notice of completion was filed.
Arizona	Within 20 days from first day of work. If the actual services provided exceed more than 20% of the original preliminary notice dollar amount, you must file an amended preliminary notice to all parties in order for your lien rights to be valid for the full dollar amount.		Contractor within 120 days from last day of work or completion, whichever is sooner or within 60 days if notice of completion was filed.
Arkansas	Before work begins	10 day notice to owner(s), except for original contractors.	Within 120 days from last day of work.
California	Within 20 days from first day of work, for Subs and Material Suppliers		Contractor, within 60 days of last day of work or within 30 days if notice of completion was filed. Subs and Material Supplier, within 90 days of last day of work or within 30 days if notice of completion was filed.
Colorado		Within 10 days before filing lien	Within 4 months of last day of work
Connecticut		Within 90 days, of last day of work	Within 90 days of last day of work.
Delaware	Contractors who have a contract with the owner and who provides both labor & materials.		Within 120 days but not before 90 days after last date of work or delivery.
District of Columbia	First day of work or during construction.		Within in 3 months from last day of work.
Florida	Within 45 days from first day of work		Within 90 days from last day of work.
Georgia	Within 30 days from first day of work		Within 3 months after last day of work.
Hawaii		Within 45 days of last day of work.	Within 1 year and 45 days if no notice was filed.
Idaho		Within 24 hrs. of filing lien.	Within 90 days of last day of work.
Illinois	Subs and Material Suppliers for residential Within 60 days from first day of work or delivery.	Subs and Material Suppliers, Within 90 days after last day of performance.	Contractors, within 4 months after last performance against third parties and subsequent owners. Within 2 years after last performance against original owner(s). Subs and Material Suppliers, 10 days after filing lien notice
Indiana		Within 30 days from first day of work for alterations or repair.	Within 60 days after last day of work.
Iowa	Within 10 days from start for original contractor with no written contract on a remodel.		With 90 days from last day of work.
Kansas		Required before lien	Within 4 months from last day of work for contractors. Within 3 months for Subcontractors and Material Suppliers.
Kentucky		Within 75 days on last day for claims less than $1000 Within 120 days for claims over $1000	Within 6 months after last day of work.
Louisiana	General Contractor, before works begins.	Within 30 days from first day of work.	With 60 days of last day of work.
Maine	General Contractor prior to sale. Sub Contractors on residential before payment to general. Commercial none needed.		Within 90 days of last day of work.
Maryland		Within 120 days after last day of work.	Within 180 days.
Massachusetts	*Call for Additional Information*		Within 90 days from last day of work.
Michigan	Within 20 days from  first day of work.		Within 90 days from last day of work.
Minnesota	Within 45 days from first day of work. General Contractor (without contract) Within 10 days from start.		Within 120 days from last day of work.
Mississippi	Original Contractors can file liens Sub contractors and Material Suppliers can file stop notices.		Within 12 months after last day of work.
Missouri	Original construction immediately.	10 days before lien	Within 6 months from last day of work.
Montana	Within 20 days from first day of work.		Within 90 days from last day of work.
Nebraska	Optional, but advisable.		Within 120 days from last day of work.
Nevada	Within 31 days from first day of work.		Within 40 days from last day of work with notice of completion filed. Within 90 days of last day or completion without notice of completion filed.
New Hampshire	Before first day of work		With notice valid for 120 days
New Jersey	Commercial NUB (optional) Residential- NUB is required		Within 90 days from last day of work. Within 10 of arbitrator’s decision.
New Mexico	Residential within 20 days from first day. Commercial Within 60 days from first day.		Within 120 days from last day of work for Original Contractors. All others Within 90 days after last day of work.
New York			Within 4 months from last day of work on residential. Within 8 months for commercial
North Carolina			Within 120 days from last day of work.
North Dakota		15 days before lien is filed.	Within 90 days from last day of work.
Ohio	Within 21 days from first day of work.		Within 60 days from last day of work residential. Within in 75 days for commercial.
Oklahoma	Before the first week on remodels.		Within 90 days from last day of work for Subcontractors and Material Suppliers. Within 4 months for General Contractors.
Oregon	Residential anytime after first day of work		Within 75 days after last day of work
Pennsylvania	Before completion	Within 30 days of filing lien	Within 4 months after last day of work.
Rhode Island		Within 120 days of first day of work.	Within 120 days.
South Carolina	Subcontractors and Material Suppliers as soon as possible.		Within 90 days of last day of work.
South Dakota	Optional, but advisable.		Within 120 days of last day of work.
Tennessee	(Original) Contractor prior to work, can be a misdemeanor if not given but does not affect lien rights		Within 90 days of last day of work.
Texas	No later than the 15th day of the 3rd month all or part of labor or material was produced.		No later than 15th day of 4th month after last day of work.
Utah	Within 45 days from start.		Within 90 days of last day of work.
Vermont		Anytime not required but advisable.	Within 120 days last day of work.
Virginia			Within 90 days from last day of work.
Washington		Within 10 days of first day for single-family residence. Within 60 days from first day of work for commercial or multifamily projects.	Within 90 days from last day of work.
West Virginia		Within 75 days of completion	Within 90 days of completion
Wisconsin	Within 60 days from first day of work	Within 6 months from last day of work.	Within 6 months from last day of work.
Wyoming	Within 30 days from first day of work	Within 10 of filing lien	Within 90 days of last day of work.