An Illinois preliminary notice is a valuable tool to expedite payments for construction projects. This document, often sent to the property owner early in the project, serves as a formal notification of involvement. To maximize its benefits, it’s crucial to understand Illinois’ specific rules and guidelines for sending preliminary notices.
These regulations can vary significantly between projects and are often complex, making compliance a challenge. Below is a breakdown of the key rules and requirements for sending a preliminary notice in Illinois to help you navigate the process effectively.
Key Takeaways
- 60-Day Notice Requirement: Subcontractors and suppliers working on owner-occupied, single-family residential projects in Illinois must send a 60-day preliminary notice within 60 days of starting work or providing materials to preserve their lien rights.
- 90-Day Notice of Intent to Lien: A 90-day Notice of Intent to Lien is required for subcontractors to fully protect their mechanics lien rights, ensuring they can file a lien if payment is not received within the designated time frame.
- Proper Delivery and Compliance: Preliminary notices must be sent via certified mail with a return receipt requested to the property owner and/or general contractor, with clear and accurate details to avoid invalidating lien rights.
Who Needs to Send an Illinois Preliminary Notice?
General contractors in Illinois are not required to send traditional preliminary notices. However, they must provide a Sworn Statement for all private projects. On owner-occupied, single-family residential projects, they are also required to include specific statutory notice language alongside the Sworn Statement.
For other potential lien claimants, a preliminary notice (also known as a Notice to Owner or 60-Day Notice) is only mandatory on owner-occupied, single-family residential projects to preserve the right to file a mechanics lien Illinois.
Determining whether a property is owner-occupied can be challenging. For example, if the owners are not living in the home during remodeling, identifying the occupancy status may require additional clarification.
Contractors working on home repairs or remodeling projects subject to the Illinois Home Repair and Remodeling Act must provide homeowners with a “Home Repair: Know Your Consumer Rights” pamphlet before starting work. Failure to deliver this pamphlet does not affect mechanics lien rights or contract enforcement but can expose the contractor to consumer fraud claims, potentially resulting in damages.
Additionally, a 90-Day Notice of Intent to Lien is required before filing a mechanics lien in Illinois.
What’s the Deadline to Send an Illinois Preliminary Notice?
General contractors must provide a Sworn Statement and, if applicable, an Owner-Occupant Warning Notice before receiving any payments.
A Notice to Owner must be issued within 60 days of initially supplying labor or materials to the project.
Who Do I Need to Send an Illinois Preliminary Notice To?
In Illinois, all preliminary notices must be delivered to the property owner or their authorized representative. However, it’s recommended to also send the notice to the general contractor for added assurance.
Owner-Occupant Warning Notice: If multiple owners reside on the property, serving the notice to one owner is considered sufficient to serve all owners.
What Information Is Required on an Illinois Preliminary Notice?
Sworn Statement Requirements
- Include names and addresses of all parties supplying labor, materials, or services to the project.
- List amounts currently owed or expected to be owed to each party.
- Must be made under oath or verified by affidavit.
General Contractor (GC) Owner-Occupant Warning Notice
The following statement must appear in bold, 10-point font:
THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT A SWORN STATEMENT OF PERSONS FURNISHING LABOR, SERVICES, MATERIAL, FIXTURES, APPARATUS OR MACHINERY, FORMS OR FORM WORK BEFORE ANY PAYMENTS ARE REQUIRED TO BE MADE TO THE CONTRACTOR.
Notice to Owner Requirements
To ensure validity, the notice must be written in bold, 10-point font and include:
- Claimant’s name and address.
- Name and address of the hiring party.
- Date when labor or materials were first furnished to the project.
- A general description of the labor and materials provided.
Additionally, the notice must contain this warning, as mandated by 770 ILCS 60/5(b)(ii):
The subcontractor providing this notice has performed work or delivered material to your home improvement contractor. These services or materials are being used in the improvements to your residence and entitle the subcontractor to file a mechanics lien against your residence if the labor, services, material, fixtures, apparatus, machinery, forms, or formwork are not paid for by your home improvement contractor. A lien waiver will be provided to your contractor when the subcontractor is paid, and you are urged to request this waiver from your contractor when paying for home improvements.
How Should a Preliminary Notice Be Sent in Illinois?
The Sworn Statement and Owner-Occupant Warning Notice are often included as part of the construction contract. If they are not, there are no strict rules for delivery, but the following approaches are recommended as best practices.
For all other notices, it’s advisable to send them via certified mail with a return receipt requested and delivery restricted to the recipient. Alternatively, personal delivery is also an acceptable method.
Is the IL Preliminary Notice Considered Served When Sent or When Received?
Illinois preliminary notice sent via certified mail are deemed served once they are mailed. However, for the notice to be valid, it must also be received by the intended party, and it is the sender’s responsibility to ensure this occurs.
What If an Illinois Preliminary Notice Is Sent Late?
If a general or direct contractor neglects to submit the Sworn Statement or Owner-Occupant Warning Notice, it can invalidate their lien rights.
Subcontractors who fail to send the Preliminary Notice to Owner Illinois within 60 days of beginning work forfeit their lien rights, unless the owner has made payments before receiving the notice. In such cases, the subcontractor’s lien claim is restricted to the unpaid amount that the owner still owes the general contractor.
Do I Need to Send an Illinois Preliminary Notice?
No, Illinois does not mandate a preliminary notice to secure the right to file a bond claim on public projects or to claim the contract funds owed to the general contractor.
About Illinois Preliminary Notices
Preliminary Notice Requirements Vary by Project Type
In Illinois, general contractors or anyone with a direct contract with the property owner are not obligated to send a preliminary notice. However, other workers or suppliers not directly contracted with the property owner must send a notice to preserve their right to file a valid mechanics lien. For residential projects, those not in direct contact with the property owner must send a 60-day preliminary notice within 60 days of first providing labor or materials. This is especially important for improvements to owner-occupied single-family homes (1-4 units).
In addition to the 60-day preliminary notice, anyone not directly contracted with the owner must also submit a Notice of Intent to Lien within 90 days after the last day of service or materials provided. For residential projects, both the 60-day notice and the 90-day intent to lien are required to qualify for lien protection.
Additionally, home repairs or remodeling projects are subject to the Illinois Home Repair and Remodeling Act. This act mandates that contractors give homeowners a “Home Repair: Know Your Consumer Rights” pamphlet before work begins. While failing to provide this pamphlet doesn’t affect lien rights, it does open the contractor up to potential legal action under the Consumer Fraud Act.
How to Send a Preliminary Notice in Illinois?
In Illinois, contractors and suppliers must adhere to specific preliminary notice rules to ensure they are paid for their work. These notices not only protect lien rights but also offer several advantages for those working on construction projects. This guide explains everything you need to know about preliminary notice Illinois and how to properly submit them.
What is an Illinois Preliminary Notice?
Preliminary notices in Illinois are often referred to as pre-liens, notices to owners, or notices of furnishing. Regardless of the name, these documents serve a similar purpose: they notify owners, general contractors, or lenders that a subcontractor or supplier is involved in the project. Properly submitting a preliminary notice is crucial to secure payment and maintaining lien rights in the event of non-payment.
In Illinois, there are two main types of preliminary notices that protect lien rights:
- 60-Day Preliminary Notice
- 90-Day Notice of Intent to Lien
Both notices help ensure that contractors, subcontractors, and suppliers are paid for their contributions to the project, particularly if disputes over payment arise.
60-Day Notice Rules and Deadlines
The 60-day notice is required for anyone working on single-family, owner-occupied residential projects who does not have a direct contract with the property owner. This notice must be sent within 60 days of the first-day labor or materials are provided. If the 60-day notice is not sent within this time frame, mechanics lien rights are limited to the amount still owed to the original contractor. For example, if a subcontractor fails to send the 60-day notice and the general contractor has already received partial payment from the property owner, the subcontractor can only claim the unpaid balance from the general contractor.
It is also important to clarify whether a property is owner-occupied, as this designation affects the notice requirement.
90-Day Notice Rules and Deadlines
The 90-day notice is not always required, but failing to send it may reduce the protection provided by a mechanics lien. This is because the general contractor must submit a “Sworn Statement” listing all subcontractors and amounts owed. If the subcontractor’s amount is inaccurately listed in this statement, the subcontractor’s lien rights could be limited. To ensure full protection, subcontractors should send a 90-day Notice of Intent to Lien if they have not been paid. The notice must be sent within 90 days from the last day labor or materials were provided, but it does not include any warranty work or punch list items.
For residential projects, both the 60-day notice and the 90-day notice should be sent to fully protect lien rights.
Information Required on Illinois Preliminary Notices
60-Day Notice
The 60-day notice must include:
- The claimant’s name and address
- The date when labor or materials were first provided
- A description of the work or materials provided
- The name of the hiring party
The notice must also include a warning in bold, 10-point font, stating that failure to pay will result in the subcontractor filing a lien against the property.
90-Day Notice
The 90-day notice is less strict in format but should include the following details:
- The owner’s name
- A description of the work or contract
- A statement of the amount owed
Both notices must be sent by certified mail with a return receipt requested and restricted delivery to ensure they reach the correct addressee.
Final Thoughts
Preliminary notices are crucial for contractors and suppliers to secure their lien rights and protect their payment interests on Illinois construction projects. While sending these notices might seem like an added step, doing so helps clarify payment obligations and ensures that lien rights are fully protected. By following the rules for both the 60-day and 90-day notices, you can avoid issues with unpaid claims and safeguard your ability to file a mechanics lien if necessary.
Get in Touch
Understanding and following the specific requirements for Illinois preliminary notices is essential for contractors, subcontractors, and suppliers to protect their mechanics lien rights and ensure timely payment on construction projects. By adhering to the 60-day and 90-day notice deadlines, providing accurate information, and delivering the notices properly, you can avoid potential issues with unpaid claims. While the process may seem complex, taking these steps can help safeguard your rights and ensure your involvement in the project is properly documented and protected.
At CRM Lien Services, we have been serving customers across the country with required reference documentation for lien claims since 1986. We provide expert guidance, helping contractors and suppliers safeguard their payment rights through seamless and timely preliminary notice and lien filings. We have a wealth of expertise, are licensed and insured, and have a team of highly knowledgeable document processors. If you’re looking for a straightforward process for filing a preliminary notice and mechanics lien, give us a call or shoot us an email.
