Mechanic's Lien Risk from Subcontractors - Cook County, IL

[Jia Lin]

Hi All, I'm flipping a condo in Cook County and recently discovered that the GC I've hired and paid more than 80% balance of labor has not paid the subcontractors. I have receipts and bank statements to substantiate each and every payment. The GC has refused to provide signed lien affidavits and sworn statements indicating he has paid the subs. We ultimately fired him for poor workmanship (light switches popping out sockets, bad paint job, bad tile work etc) and damages to our expensive materials (nicks and dings to expensive kitchen cabinets) which requires extensive rework. We had no knowledge subcontractors were even being utilized when we signed the initial contract. Has anyone had success fighting off mechanic liens in Cook County or Illinois? I've done some preliminary research and Illinois seems to be extremely favorable towards contractors. Seems mind boggling that we'd could potentially be responsible for filling the GC's financial obligations when we had no knowledge of what his agreement is with the subscontractors. Appreciate any insight!

[Francis Rusnak]

I know it doesn't help the situation but you aren't alone in this predicament. We've rehabbed over 30 houses the last few years in Chicago area and have worked with more shady contractors than you'd believe. 

Do your best to tarnish their name, be it through online reviews, personal referrals, current jobs they have, municipalities they do/have worked for, etc.

BBB is a great site for this as well -- if they're even on there. 

Perhaps look them up through the Illinois register of contractors and see if anything can be done there, once again, if they're even on there. 

https://www2.illinois.gov/business/registration-licenses-permits

Basic principals we follow now are:
No money up front
We pay for materials directly
Don't get ahead on payments (for work done)
Pay subs directly
Some type of referral