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

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