An overview of Illinois Mechanics Lien Law.

The Illinois Mechanics Lien Act (the "Act") offers important protection to parties that provide services, labor or materials for construction projects by granting them a right to record a mechanics lien against real property as a means to secure their right to payment. As such, the Act confers upon such parties an extraordinary right to claim a security interest in another's property and to assert a claim against the owner of that property when such parties may not otherwise have a legal basis for doing so. Because these rights are created by statute alone, however, the Act is strictly construed, and parties must strictly comply with the requirements of the Act in order to enjoy its benefits.

The purpose of this article is to provide a general overview of Illinois' mechanics lien law. This article does not address the complexities that can and do arise, and any person wishing to pursue or defend against a mechanics lien claim should seek proper legal counsel prior to doing so.

Private Construction Projects

A party that provides services, labor or materials for a construction project in Illinois pursuant to a contract to improve property has a lien upon the real estate at issue. A party will not be entitled to enforce its lien, however, until it has properly recorded a valid lien in compliance with the requirements of the Act. As noted below, these requirements may differ depending on whether the party is classified as a "contractor" or "subcontractor" for purposes of the Act. A "contractor" is any party who has a contract directly with the owner or "with one whom the owner has authorized or knowingly permitted to contract," regardless of whether the party is, for example, an architect, engineer, laborer or supplier. (1) A "subcontractor," on the other hand, is any party that furnishes labor, services or material "for the contractor." (2) Although this definition of subcontractor appears limited to first-tier subcontractors in that it specifically refers to work furnished "for the contractor," Illinois courts have found that the term "subcontractor" as used in the Act also includes second- and third-tier subcontractors.

Preparing The Mechanics Lien

The mechanics lien claims of both contractors and subcontractors must be verified by the affidavit of the claimant and must contain:

* a brief statement of the claimant's contract;