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Updated almost 5 years ago on . Most recent reply

User Stats

15
Posts
19
Votes
Jia Lin
  • Real Estate Broker
  • Chicago, IL
19
Votes |
15
Posts

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

Jia Lin
  • Real Estate Broker
  • Chicago, IL
Posted

Hi All, I'm flipping a condo in Cook County (Illinois) 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. For instance, what's stopping a random electrician from filing a mechanic's lien for $10,000 if there was no contract between the home owner and the electrician? Or what if the GC promised someone $3,000 but they're now asking for $6,000? Appreciate any insights!

Most Popular Reply

User Stats

15
Posts
19
Votes
Jia Lin
  • Real Estate Broker
  • Chicago, IL
19
Votes |
15
Posts
Jia Lin
  • Real Estate Broker
  • Chicago, IL
Replied

@Account Closed - Thanks! Yes, been reading up on the mechanic lien law for IL. Unfortunately, the law favors contractors and subcontractors. We don't have the benefit of the 20 day preliminary notice. Here we have a 60 day preliminary notice which may be issued after a project is completed in order to perfect the lien. Would think it's common sense to require notice to be provided before a project starts but legislation is failing homeowners/clients in this regard.

@Wayne Brooks - Thanks for that insight. Wish IL would take after FL in that sense. Unfortunately, a notice of commencement is not required here. Going forward will hire and pay subs directly and if using a GC will require a sworn statement/lien affidavits to confirm payments have been passed to subs.

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