We are at 89 days since our last furnishing (12/24), the end customer Danville Community College, has not paid and has not responded to the GC for payment. We are in a subcontractor position. Is NOI the best action at this time? I assume this community college to be a public entity?
The first order of business should be to identify the property owner and to determine whether the project is publicly owned or privately owned. It makes sense that a community college would be publicly owned, but if the underlying land is actually owned by a public entity, that'd change the available recovery methods for the job. Some additional discussion on the topic here: (1) Mechanics Lien or Bond Rights When Working on University Construction Projects; and (2) Types of Construction Projects - What are They and Why You Should Care .
Publicly owned colleges will typically be public property and not subject to mechanics liens, and a payment bond claim (or a lien on funds) is typically more appropriate (assuming the project is bonded). However, if the underlying land is actually privately owned, then it's possible a mechanics lien claim could be appropriate.
If it's public, then a Notice of Intent to Lien won't be required - granted, it could still be effective to force payment. If it's private, then a Notice of Intent to Lien will be required to preserve mechanics lien rights, and that notice must be served within 90 days of last furnishing labor or materials to the project. More info on the Illinois NOI requirements here: Illinois Notice of Intent FAQs & Guide.
Again - assuming that the project should be considered "public" and bonded, the following page should provide some great insight into how to proceed with a claim: Illinois Bond Claim Guide and FAQs. That page discusses both bond claims and a lien on contract funds.
Note that other tools like invoice reminders, Notices of Intent, payment demand letters, etc. could help with recovery before having to escalate to a full blown claim. Plus, if a claim does become necessary, then there are multiple options - like a bond claim, lien on funds, small claims court, legal claims, etc. You can click on any of those options and follow the link for a breakdown of how they work.
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