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What is the period of time to file notice of lien rights after completion of work for commercial buildings?

We have performed work on a commercial building in Lake County< IL. 1. Notice of lien rights was not served upon beginning work. 2. Additional work was performed more than 4 months after the original contract work was completed, but less than 90 days of completion. 3. Are we still within the 90-day period to provide notice of lien rights, including notice of intent to lien? Section 6 of Illinois 60 Mechanics Lien Act stipulates, "...work done or material furnished within 5 years from the commencement of said work..." Section 7 stipulates, "...unless within 4 months after completion, or if extra or additional work is done..." and continues with, "...within 4 months after the completion of such extra or additional work...bring an action to enforce his lien..." "...Such claim for lien may be filed at any time after the claiman's contract is made...and within 2 years after the completion of the contract...or any extra work."

1 reply

Oct 10, 2019

The Illinois mechanics lien statute is more complex than many other lien statutes, and there are a lot of variables in play here. Let's break things down one by one: (1) Illinois' preliminary notice requirements; (2) Illinois' Notice of Intent to Lien requirements; and (3) the Illinois mechanics lien deadline. Preliminary (60-day) notice requirements. Parties hired by someone other than the property owner will need to send preliminary notice to preserve their lien rights for later on in the job. That notice must be sent within the first 60 days of performing work or furnishing materials in order to be effective. And, if the notice is required but not sent, then the right to lien will typically be lost. What work is the Notice of Intent to Lien (90-day notice) based on? Illinois is one of relatively few states that requires a Notice of Intent to Lien be sent in order to preserve the right to file a mechanics lien. Unlike a preliminary notice, a Notice of Intent to Lien serves as a heads-up that there's a payment issue at hand, and it's a notification that a lien will be filed if payment isn't made. For parties hired by someone other than the property owner, the notice must be sent within 90 days of the lien claimant's last furnishing of labor or materials to the project. In a situation where a claimant must return to a job to perform extra work, the extra work will generally reset the deadline for sending the Notice of Intent to Lien if the work is substantial and/or done pursuant to a valid change order. But, things like punch list work generally won't reset the timetable for sending notice. Understanding the Illinois mechanics lien deadline Illinois has an interesting mechanics lien deadline, as you reference in your question. Before diving into that, note that § 60/6 of the Illinois mechanics lien laws refers to the time for completing a contract after commencing work, not (specifically) the deadline to file a lien. Anyway - Illinois generally has one of the more relaxed mechanics lien deadlines. As long as a mechanics lien is filed within 2 years of the last furnishing date, an Illinois mechanics lien claimant will be entitled to file a mechanics lien wish is enforceable against the owner who owned the property at the time their work was done. However, if the property is sold or transferred after the work was done but before a mechanics lien is filed, a lien claimant could lose rights if they wait to long. And, in order to make sure that lien rights are effective both against the original owner and against future owners, an Illinois mechanics lien must be filed within 4 months after last furnishing. Just like the above section on sending a Notice of Intent to Lien, note that the deadline may be reset if additional work is required on the project - but that minor work or punch work probably wouldn't be effective to do so. I hope this was helpful! For more background on the Illinois notice and mechanics lien deadlines, here's are some great resources: (1) Illinois Preliminary Notice Guide and FAQs (2) Illinois Mechanics Lien Guide and FAQs

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