Construction Claims - Secure Your Right to Get Paid

A. Perfecting a Lien Claim - Private Constructionis filed within the 90 days the public entity must hold the
Projects.funds until the final adjudication of the suit or may
• Contractors bringing a claim against lenders,deposit the funds with the clerk of the court where the
purchasers and encumbrances must (1) record claimsuit was filed.
or bring suit within 4 months of the last day completed• If the public entity no longer has any contract funds
work, and (2) file suit within 2 years. Contractorsat the time it receives the notice, then there is no
bringing a claim against the owner must file suit within 2recovery.
years.• Must file suit for accounting within 90 days of
• Subcontractors bringing a claim against ownergiving Notice of Lien. The public entity does not have to
occupied single family residents must give notice of lienbe a party to the lawsuit. The state of Illinois cannot be
to the occupant of the resident within 60 days of firsta defendant, but other public entities may.
furnishing materials or labor. Subcontractors bringing a• On State Projects, suit shall be commenced and a
claim against owner, lender, purchaser andcopy of the complaint must be delivered to the
encumbrances must (1) give notice of lien within 90Director not less than fifteen days prior to the date
days of the last day completed work, (2) record claimwhen the appropriation from which the money is to be
or bring suit within 4 months of the last day workpaid will lapse.
completed, (3) if no notice is given, subcontractor has• A public lien is a claim against money, bonds,
lien for amount shown on contractor's swornwarrants, or other means of payment from the public
statement; and (4) file suit within 2 years.body.
• Demand for suit. Any party of interest can• Mechanics lien's are not permitted against Federal
demand that the claimant file suit to enforce their lienBuildings.
within 30 days or the lien is forfeited.C. The Miller Act governs Federal construction project.
• Private construction lien claims attach to the real• Every person who furnished labor or material has
property.a right to sue under the Miller Act against a payment
• Time Requirements are Jurisdictional; thus, if youbond upon the expiration of 90 days after his last day
miss a date, the courts have no authority to enforceof work.
your rights.• A sub-subcontractor must provide the general
B. Perfecting a Lien Claim - Public Constructioncontractor written notice of its Miller Act claim within 90
Projectsdays of his last day of work.
• There is no time period for providing Notice of Lien.• The Miller Act provides that no suit shall be
• Give written notice of lien to public entity.commenced after the expiration of one year after the
• For State Project - must provide sworn statementday on which the last of the labor was performed or
of claimmaterial was supplied.
• Upon receiving the Notice, the public entity must• The Miller Act's requirement of bringing suit within
hold all monies or other form of payment due thethe prescribed time is a condition precedent to the right
general contractor for 90 days. If no suit is filed withinto maintain the action.
90 days the public entity can release the money. If suit