Does a supplier to a supplier have lien or bond rights in Illinois? We are a subcontractor and have a material supplier that is fabricating and delivering material to a jobsite. Clearly, they have rights. However, does THEIR supplier (in this case a steel mill) have lien rights as well? If so, what are the conditions.... Thanks
You ask if a supplier's supplier has lien rights under the Illinois Mechanics Lien Act (the "Act").
To begin with, every contractor or subcontractor that furnished or that is furnishing, labor, materials, services, fixtures, apparatus or machinery, forms, or form-work to the owner, to the general, or to a subcontractor, has lien rights.
The language of Sections 60/21 and 60/22 of the Act, as well as recent caselaw, suggests that suppliers to suppliers have lien rights IF the supplier's supplier was known to the owner (i.e via Sworn Statement) or contributed to the project (i.e. material incorporated into the job). If either is true, the supplier's supplier has lien rights.
I hope that this explanation was helpful. Best of luck!