IIllinois. Verbal/text contract. Can a lien be placed on a property owner by contractor or subcontractor that is unlicensed, uninsured, did not obtain permit from Village for poor and incomplete work on structural frame with rot/mold?
1 reply
Oct 18, 2019
Illinois does not specifically require a contract for construction work to be written in order for lien rights to arise. While a written contract is usually a good idea, the lack of a written contract is specifically fatal to a subsequent mechanics lien in Illinois. Note, however, that Illinois law does purport to require a written contract for home (owner-occupied residence) repair and remodeling work of over $1,000. Like many states, there are specific requirements for the information that is to be contained on a home improvement contract.
Likewise, Illinois generally does not require lien claimants to be licensed in order to file a valid and enforceable mechanics lien. Again, it is definitely a best practice for a contractor to be properly licensed, as there can be penalties associated with a failure to be licensed and insured if work is performed. In Illinois, general contractors are not licensed at the state level, and instead licensure is regulated at the state or city level.
Finally, poor quality work does not necessarily bar a valid mechanics lien. A mechanics lien can generally be claimed by a party if there is money owed for the work done, even if the work done is lacking quality. However, a mechanics lien is only enforceable to the extent that money is owed to the claimant. If the work is so shoddy that it does not fulfill the contractual requirements, was not performed in a workmanlike manner, or there are other reasons that money is not owed to the lien claimant, all of that goes into the effectiveness of the lien when an action to enforce (or an action to remove the lien) is initiated.