Bill > HB2501

This bill amends the Mechanics Lien Act to strengthen protections for contractors and subcontractors by rendering unenforceable any pre-contract agreements that waive or subordinate mechanic's liens. Specifically, the bill declares that agreements to waive or subordinate liens, whether conditional or unconditional, are against public policy if they are made in anticipation of being awarded a contract, subcontract, or payment for work or materials on a real property improvement. A mechanic's lien is a legal claim that allows contractors, subcontractors, or material suppliers to secure payment for work performed or materials provided on a construction project by placing a hold on the property's title. The bill aims to prevent property owners or general contractors from forcing workers to give up their lien rights as a condition of being hired, which could potentially leave contractors vulnerable to non-payment. The law does maintain two exceptions: it does not prohibit lien releases under specific existing provisions or prevent subordinating a mechanic's lien to a construction loan mortgage after more than half the loan has been disbursed. By invalidating such pre-emptive lien waivers, the bill seeks to protect the rights of workers in the construction industry.

Justice

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2501&GAID=18&DocTypeID=HB&SessionID=114&GA=104