Can a GC list subs material and labor on his lien waiver and does this shift responsibility from the owner to the GC?
1 reply
Apr 22, 2020
If a general contractor signs a sworn statement that they've paid all subs and suppliers on an Illinois job, then an owner can safely pay their GC without fear of (valid) mechanics liens from subs and suppliers on the job. But, a simple mechanics lien waiver from the GC, without more, won't block lien claims from sub-tier claimants. However, because Illinois doesn't have a specific statutory form for mechanics lien waivers - it's likely possible to include that sworn statement about having paid all subs and suppliers right there on the waiver form.
For a deep dive into the sworn statement/mechanics lien protection rule, this article provides great insight: Illinois Court Gives “Unpaid Balance” Rules Liberal Treatment To Favor Owners. For more background on mechanics lien waivers in general, here's a great resource: Illinois Lien Waivers Guide and FAQs.