On the Construction Payment Blog, we’ve written about lien waivers in the past. In some states, lien rights can be waived before the start of a project (like in Virginia). In others, law and public policy prevent such waivers (like in Louisiana).
A new law blog on Mechanic Lien Law in Illinois just posted on this subject as the law applies to its state. The bottom-line: it’s tough for lien waivers to pass legal muster in Illinois.
Here’s a quote from the post:
Under Illinois law, courts regularly will not enforce a lien waiver because it is contrary to public policy and the Illinois Mechanics Lien Act. The Mechanics Lien Act provides that no contract for construction services shall include a lien waiver provision. The law’s intention is to protect contractors and sub-contractors who perform work on a property and are not paid for their labor and materials.
So contractors and suppliers in Illinois may not be restricted by “no lien” clauses in their contracts. If you’re ready to file a lien in that state, Levelset can help.