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How to lien or force a state agency to pay?

We supplied material to a state agency governed by the county. They short paid our bills and will not pay the difference. They had no valid reason. We sent them certified letters and told them we intend to lien. We just want to send notices out. We were told we could file a claim on the bond. As far as I know, there is no bond. They purchased directly from us and we supplied the material directly to them. There is no general contractor involved and they did not supply us a bond. What is our next course of legal action to collect what they owe?

3 replies

Jan 25, 2022

Your question states that you supplied materials to a State Agency and that you are owed money. If so, you are entitled to a "Lien," but not the typical Mechanics Lien. Consider the following:

First, if you perform work on public property under the direction of a political subdivision (Federal, State, County, etc.) then you are entitled to a lien for unpaid sums. But, how you go about perfecting and enforcing your lien is much different than it would be on a private project.
Second,rather than the Mechanics Lien Act, payment is governed by the Liens Against Public Funds Act. So, there is no “owner” for the property. Instead, there is an obligation from the government to you, the contractor.
Third, if you comply with all the requirements of the Liens Against Public Funds Act, you will be entitled to payment from funds set aside by the government entity for the project. But, failure to comply in any way can result in permanent loss of your right to payment.
Finally, like the Mechanics Lien Act, the requirements of the Illinois Public Funds Act are strictly construed.

With so many differences to consider, even if you have foreclosed Mechanics Liens in the past, I strongly recommend you sit down with experienced Counsel to discuss your options. Do not try this yourself.

Best of luck.

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Jan 26, 2022

Prior to filing suit you should consider letting an IL licensed and bonded certified commercial collection agency see if they can get this bill paid. This can be determined usually within 45 days and on a contingency bases and only charge a small percentage of what is actually collected; if nothing is collected, nothing owed. You can then look to your legal options. Let me know any questions and best regards getting your money, Steve

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Jan 31, 2022

I need more information. You very likely have rights under the Illinois Mechanics Lien Act. I would need to know if the property is commercial or residential, and the last day upon which you supplied materials for the job. In order to have rights under the statute, you must strictly comply with time and notice requirements to the owner. If however you have forfeited your rights under the statute, that does not mean you cannot pursue remedies in a court of law. You can still sue for breach of contract and unjust enrichment.

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