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The Illinois Home Repair Fraud Act (815 ILCS 515/1-515/3) plays a pivotal role in safeguarding homeowners from fraudulent practices in the realm of home repair and construction. It establishes a legal framework that demands transparency and integrity from contractors, ensuring that home repair contracts are fair and honest.
Under the Act, any home repair job exceeding $1,000 must be supported by a written contract. This contract is not just a formality; it is a detailed document that must include:
The Act defines “home repair” broadly, encompassing everything from fixing leaky faucets to installing central air conditioning. It also clarifies what constitutes “fraudulent practices,” such as:
If you suspect you’ve been a victim of home repair fraud, the Act empowers you to take action. It provides a clear legal framework for pursuing compensation, including:
If you experience any of the following issues with a contractor – here are six steps you should take:
Remember, prevention is always better than cure. Thoroughly vetting contractors, having a clear and comprehensive contract, and keeping informed about the progress of the work can help avoid many of these issues.
As a homeowner, the Act bestows upon you several rights to shield against fraud:
While the Act provides robust protections, it also places certain responsibilities on homeowners:
Your home is more than just a building; it’s a significant investment and a cornerstone of your life. The Illinois Home Repair Fraud Act provides a vital protective measure against fraudulent practices in home repairs and construction. Understanding this law and exercising your rights under it are key to safeguarding your investment.
In cases where you need further assistance or face legal challenges in your home repair or construction projects, turning to Grzymala Law Offices is the smartest decision. They can provide the support needed to navigate the complexities of construction law effectively.
Remember, protecting your home begins with awareness and is fortified by professional legal guidance. Don’t hesitate to seek out the services of our Chicago construction attorney to ensure your home projects are conducted fairly, legally, and to your satisfaction. Your home deserves no less.
Contractual dispute resolution provisions in Illinois are a critical aspect of legal agreements, especially in fields like construction, where disputes frequently arise. These provisions are designed to establish a clear framework for resolving conflicts that may occur during the course of a business relationship or project.
These provisions define the methods and processes to be used for resolving disputes between contracting parties. The primary goal is to provide a clear, efficient, and fair mechanism for dispute resolution, minimizing the need for litigation. The most common types include:
Crafting comprehensive provisions in contract law is a critical exercise in safeguarding interests and ensuring clarity in agreements. It demands a deep understanding of legal nuances and strategic foresight, essential for creating contracts that are legally sound and tailored to the specific needs of the parties involved. Here are some key considerations…
Here are some practical considerations and challenges…
Drafting effective dispute resolution clauses is a nuanced process that begins with a thorough understanding of potential conflicts and culminates in a well-defined legal framework.
The drafting of contractual dispute resolution provisions in Illinois construction law requires careful consideration. Grzymala Law Offices, with their deep understanding of Chicago construction law, stands ready to assist in navigating these legal complexities.
For legal assistance in drafting and enforcing dispute resolution provisions, our Chicago construction attorney is your go-to resource. Contact us today to ensure your construction contracts are well-prepared to handle any disputes that may arise.
The complexities of bid mistakes and withdrawals can often lead to significant legal and financial consequences. Whether you are a seasoned contractor or a novice in the industry, understanding these challenges is crucial.
In construction, a bid mistake occurs when an error is made in the proposal process, potentially affecting the project’s viability or profitability. These errors are not limited to numerical miscalculations but can also include misinterpretations of project specifications, oversight in material costs, or misjudging the scope of work required.
Such inaccuracies can stem from human error, misunderstanding of project requirements, or even technical issues during bid preparation. Here are the types of bid mistakes commonly encountered in the construction industry…
Illinois construction law places significant emphasis on distinguishing between clerical and judgmental mistakes. Clerical errors are often viewed more leniently, considering their inadvertent nature. In contrast, judgmental errors, which involve a higher level of negligence or misjudgment, are scrutinized more rigorously.
The court’s primary concern is maintaining the integrity and fairness of the bidding process. A mistake that drastically alters the bid amount or terms can lead to unfair advantages or disadvantages, disrupting the competitive nature of the process. The consequences of bid mistakes vary:
Bid withdrawals in the construction industry are not straightforward decisions. They are generally allowed under certain circumstances, primarily when a substantive mistake is identified in the bid that, if unaddressed, could lead to significant financial or operational difficulties.
These mistakes can range from clerical errors, such as misquoted prices, to more substantial issues like misunderstanding project scope. Criteria for permitting withdrawals:
Demonstrating the validity of a withdrawal request involves several complex legal considerations:
Here are the possible outcomes of bid withdrawal requests:
Bid mistakes and withdrawals are an inherent risk in the construction industry. However, with the right approach and legal support, these challenges can be managed effectively. If you find yourself in a situation involving a bid mistake or the need for a bid withdrawal, seeking the guidance of a Chicago construction lawyer is a critical step.
At Grzymala Law Offices, we understand the intricacies of Illinois construction law and are adept at guiding clients through the complexities of bid disputes. Our tea of Chicago construction lawyers, is committed to providing practical and effective legal solutions. If you are facing a construction law challenge, do not hesitate to reach out to us.
Take the first step in safeguarding your interests in the construction industry – contact Grzymala Law Offices today.
Mechanics liens serve as a legal safeguard for those who contribute labor or materials to a construction project. These liens ensure that contractors and suppliers have a claim against the property if they are not paid for their services. In Illinois, the law provides specific procedures and timelines for filing these liens, making their correct execution vital for maintaining their enforceability.
Now, let’s say the owner or general contractor files for bankruptcy. Does that automatically negate your mechanics lien? What happens now?
When a property owner or a general contractor files for bankruptcy, it can significantly impact the status and enforcement of mechanics liens. The intersection of bankruptcy law and mechanics liens is complex, with several key factors coming into play:
When a bankruptcy case is filed, an automatic stay is immediately enacted. This legal injunction is a critical component of the bankruptcy process, established under 11 U.S.C. § 362 of the United States Bankruptcy Code. The automatic stay serves as a temporary shield, protecting the debtor from creditors’ collection actions during the bankruptcy proceedings.
The automatic stay halts various collection activities, including lawsuits, foreclosures, wage garnishments, and repossessions. Specifically, the stay includes the enforcement of mechanics liens. However, the stay does prevent the perfection of a mechanics lien claim – serving notice and recording it. This means any legal or collection action to foreclose on a mechanics lien must be suspended. The stay remains in effect until one of the following occurs:
In bankruptcy proceedings, the classification and prioritization of creditors’ claims are of paramount importance. This classification significantly impacts how different creditors are repaid. Among these, mechanics liens, based on their status at the time of the bankruptcy filing, can either be secured or unsecured claims.
Perfected mechanics liens are often treated as secured claims. A lien is considered “perfected” when it has been filed according to the state’s statutory requirements and is legally enforceable against third parties.
To navigate these complexities, those holding mechanics liens should consider the following strategies:
The intersection of mechanics liens and bankruptcy in Illinois construction law is fraught with challenges. However, with the right approach and expert legal guidance, these hurdles can be navigated successfully. Grzymala Law Offices is committed to providing the support needed to secure your legal and financial interests.
Are you facing the complexities of mechanics liens and bankruptcy in Illinois? Let Grzymala Law Offices be your guide. Our Chicago mechanics lien lawyer is your key to navigating these challenges with confidence and securing your project’s legal foundation. Reach out to us today to ensure your rights are protected in the complex world of mechanics lien in Illinois.
We are pleased to announce that Mark B. Grzymala, the founder and principal of Grzymala Law Offices, P.C., has been selected to the 2024 Illinois Super Lawyers list for Construction Litigation. This is an exclusive list, recognizing no more than five percent of attorneys in the state. Mark was previously selected from 2017 through 2023.
Super Lawyers, which is part of Thomson Reuters, is a research-driven, peer influenced rating service of outstanding lawyers who have attained a high degree of peer recognition and professional achievement. Attorneys are selected from more than 70 practice areas and all firm sizes, assuring a credible and relevant annual list.
The annual selections are made using a patented multi-phase process that includes:
The objective of Super Lawyers is to create a credible, comprehensive and diverse listing of exceptional attorneys to be used as a resource for both referring attorneys and consumers seeking legal counsel.
The Super Lawyers lists are published nationwide in Super Lawyers Magazines and in leading city and regional magazines and newspapers across the country, as well as the Illinois Super Lawyers Digital Magazine.
Please join us in congratulating Mark B. Grzymala on his selection.
Grzymala Law Offices, P.C. is proud to announce that our associate attorney, Joseph F. Kwiatkowski, has been selected as a Rising Star in the 2024 Illinois Super Lawyers list for Construction Litigation. This is an exclusive list, recognizing no more than five percent of attorneys in the state. He was previously selecteed as a Rising Star in 2023 for Business Litigation.
Super Lawyers, which is part of Thomson Reuters, is a research-driven, peer influenced rating service of outstanding lawyers who have attained a high degree of peer recognition and professional achievement. Attorneys are selected from more than 70 practice areas and all firm sizes, assuring a credible and relevant annual list.
The annual selections are made using a patented multi-phase process that includes:
The objective of Super Lawyers is to create a credible, comprehensive and diverse listing of exceptional attorneys to be used as a resource for both referring attorneys and consumers seeking legal counsel.
The Super Lawyers lists are published nationwide in Super Lawyers Magazines and in leading city and regional magazines and newspapers across the country, as well as the Illinois Super Lawyers Digital Magazine.
Please join us in congratulating Joseph F. Kwiatkowski on his selection for 2024.
Overview
Presented by the Illinois State Bar Association (ISBA) Construction Law Section
Live Webcast
Wednesday, January 24, 2024
2:00 – 4:25 p.m.
2.0 hours MCLE credit
Investing in the construction of a new home or remodeling an existing home may be one of the largest financial investments that a client may make. Moreover, securing the home of “their dreams” is also an emotional investment by the client. Don’t miss this two-part online program that gives you an overview of the various construction law issues from the owner’s perspective, which will allow you to better protect your clients from construction and payment disputes with their contractors and guide them to a smoother journey to obtain their dream home. Part 2 topics include:
Payment processes;
Lien waivers;
The Illinois Mechanics Lien Act provisions bearing on residential construction;
Warranties applicable to residential construction;
Understanding the concepts of substantial and final completion and the certificate of occupancy; and
Much more.
Program Coordinator/Moderator:
Stanley N. Wasser , Feldman Wasser, Springfield
2:00 – 2:05 p.m. Welcome and Introductions
2:05 – 2:35 p.m. Understanding the Payment Process
Learn how to help your clients navigate the payment process with this informative presentation.
Topics include: pay applications, escrow disbursements, punch lists, and lien waivers.
Samuel H. Levine, Downey & Lenkov LLC, Chicago
David T. Arena , Arena Law Office, LLC, Park Ridge
2:35 – 3:05 p.m. Understanding Illinois Mechanics Lien Act
Don’t miss this comprehensive overview of the Illinois Mechanics Lien Act as it applies to residential construction.
Mark B. Gryzmala, Grzymala Law Offices, P.C., Skokie
Adam Whiteman, Whiteman Law, Chicago
3:05 – 3:20 p.m. Break
3:20 – 3:50 p.m. Understanding Warranties and the Right to Cure
Get the information you need about warranties and the right to cure construction defects, including implied workmanship warranty, UCC warranties, contractual call back warranties, and statutes of limitations.
Justin L. Weisberg, Robbins, DiMonte, Ltd. Chicago
Adam Whiteman, Whiteman Law, Chicago
3:50 – 4:20 p.m. Understanding the Concept of Occupancy
Learn the difference between substantial and final completions, certificates of occupancy and their implications for warranty coverage and insurance issues.
Samuel H. Levine, Downey & Lenkov LLC, Chicago
Cornelius F. Riordan , Hahn Loeser, Chicago
For best practices, before attending the program using ISBA’s Zoom platform, please visit our Technical Support page.
Program Information
Fees:
ISBA Member – $60
ISBA sponsoring section members get a $10 registration discount (which is automatically calculated in your cart when you log in to register).
Non-Member – $100
New Attorney Member (within the first five years of practice) – $25
Law Student Members – Free
Special pricing is available for Legal Service Attorneys.
If you cannot attend the live web event, a full refund is available, if you cancel your registration up to the start of the live web event on the program page in your “My CLE Account”.
Please Note: MCLE credit is available to registrants only on the day of this live event – and you must attend the entire program to earn MCLE credit. All registrants will receive access to a recording of the event a few days after the program, but credit is NOT available for the recording.
Overview
Presented by the Illinois State Bar Association (ISBA) Construction Law Section
Live Webcast
Wednesday, January 17, 2024
2:00 – 4:25 p.m.
2.25 hours MCLE credit
Investing in the construction of a new home or remodeling an existing home may be one of the largest financial investments that a client may make. Moreover, securing the home of “their dreams” is also an emotional investment by the client. Don’t miss this two-part online program that gives you an overview of the various construction law issues from the owner’s perspective, which will allow you to better protect your clients from construction and payment disputes with their contractors and guide them to a smoother journey to obtain their dream home. Part 1 topics include:
The importance of a written contract, plans and specifications, and change orders
The applicable laws and statutes that are designed to help your client;
The restrictions and limitations in recorded documents; and
The various insurance coverage you should require of contractors, including commercial liability insurance, builder’s risk insurance, and worker’s compensation insurance.
Program Coordinator/Moderator:
Stanley N. Wasser , Feldman Wasser, Springfield
2:00 – 2:05 p.m. Welcome and Introductions
2:05 – 2:50 p.m. The Importance of the Written Contract, Written Plans and Specifications, and Written Change Orders
Join us for an in-depth discussion of why having good paper trail will always help your client protect their construction interests. Topics include the importance of written contracts, why having construction plans and specification in writing helps makes sure all involved parties understand the expectations, and when to make sure change orders are submitted in writing.
Howard W. Feldman, Feldman Wasser, Springfield
Mark B. Grzymala, Grzymala Law Offices, P.C., Skokie
2:50 – 3:35 p.m. Applicable Laws
This presentation examines the applicable laws that are designed to help your client, including the Home Repair Fraud Act, Home Repair and Remodeling Act, Consumer Fraud and Deceptive Practices Act, Illinois Commercial Code, Illinois Plumbing Code, and Illinois Residential Building Code Act. Permitting ordinances and restrictions/limitations in recorded documents are also discussed.
David T. Arena, Arena Law Office, LLC, Park Ridge
Cornelius F. Riordan , Hahn Loeser, Chicago
3:35 – 4:20 p.m. Having a Legitimate, Insured, and Licensed Contractor
Choosing an insured and licensed contractor is important to the overall financial safety of your client’s construction project. This segment examines various insurance options to be aware (as well as what each type covers), including commercial liability insurance, builder’s risk insurance, and workers’ compensation insurance.
Justin L. Weisberg, Robbins, DiMonte, Ltd. Chicago
Stanley N. Wasser, Feldman Wasser, Springfield
For best practices, before attending the program using ISBA’s Zoom platform, please visit our Technical Support page.
Program Information
Fees:
ISBA Member – $68
ISBA sponsoring section members get a $10 registration discount (which is automatically calculated in your cart when you log in to register).
Non-Member – $113
New Attorney Member (within the first five years of practice) – $25
Law Student Members – Free
Special pricing is available for Legal Service Attorneys.
If you cannot attend the live web event, a full refund is available, if you cancel your registration up to the start of the live web event on the program page in your “My CLE Account”.
Please Note: MCLE credit is available to registrants only on the day of this live event – and you must attend the entire program to earn MCLE credit. All registrants will receive access to a recording of the event a few days after the program, but credit is NOT available for the recording.
Save the Date!
Single-Family Residential Construction: The Owner’s Perspective – Part 2
Wednesday, January 24, 2024 | 2:00 – 4:25 p.m.
The American Institute of Architects (AIA) digital practice documents are a collection of electronically formatted documents and forms designed specifically for the architecture and construction industries. These documents serve a variety of purposes, from standardizing contractual agreements to facilitating project management.
They primarily focus on two key aspects:
Here are some of the American Institute of Architects (AIA) digital practice documents.
The adoption of AIA digital forms has significantly impacted Illinois construction law, aligning closely with the state’s legal framework. These digital documents serve as a crucial foundation for various aspects of construction law…
The AIA Forms Digital Practice Documents represent a significant advancement in the field of construction law. They offer enhanced efficiency, better collaboration, and a standardized approach to legal processes. For construction lawyers in Chicago, these digital documents are not just tools but catalysts for better legal practice.
While navigating the complexities of digital data seem daunting, Grzymala Law Offices is here to help. Our team of experienced Chicago construction lawyers possesses in-depth knowledge of the AIA Forms Digital Practice Documents and can guide you through their implementation, ensuring you leverage their full potential.
Don’t let the intricacies of digital protocols hinder your project’s progress. Schedule a consultation with Grzymala Law Offices to discuss how we can help you integrate the AIA Forms Digital Practice Documents into your construction projects and unlock the full potential of collaborative, efficient, and legally sound building practices.
Back on July 30, 2015, Illinois Governor Bruce Rauner signed H.B. 2635 into law. This bill amended the Illinois Mechanics Lien Act (770 ILCS 60/1 et seq.) and significantly changed Illinois construction law by adding section 38.1 which allows substitution of a bond for an Illinois mechanics lien claim.
Illinois was the last state in the United States to enact such a provision.
Before this amendment, owners or general contractors had the ability to purchase bonds to cover disputed lien claims at a title company.  The title company would then litigate the lien claim if a claimant tried to enforce it. However, the lien claim remained as a cloud on title and there still was a risk of foreclosure. HB 2635 sets forth a formal process for substituting a bond and removes the cloud on title. Contrary to some rumors, the amendment does not eliminate mechanics lien rights and a lien will still be a cloud on title until a bond is furnished.
Generally, this new section (sometimes referred to as a “bonding over” provision) provides that an owner or anyone else with an interest in real estate (such as a lender, other lien claimant or even a condominium association) may file a verified petition with the clerk of the court in the county where the property is located requesting that a surety bond be substituted for a lien claim. The surety bond must be from an insurance company that is rated A or higher by AM Best and be size “IX” or larger, be in an amount equal to 175% of the lien claim, and must require that the surety and principal BOTH be jointly liable to the lien claimant.
Upon granting the petition, the lien would be discharged and the parties would proceed with a lawsuit against the bond as well as any other causes of action such as for breach of contract, fraud, deceptive practices, account stated, conspiracy, enforcement of security interest, replevin, or quantum meruit, as applicable. These other causes of action are not covered by the bond and litigation as those counts would proceed as they normally do.
A petition for bond substitution can also be filed in a pending foreclosure action but must be done so within five (5) months of the suit commencement.
However, the bill is unclear as to what happens when there are multiple claimants in a single law suit and if some claims are bonded over and others are not. It also unclear as to what happens with blanket liens or liens against multiple parcels such as condominiums if one unit or lot owner bonds over his portion of the lien claim and another unit or lot owner does not.  If some parcels or some liens are protected by a bond and others are not in a foreclosure action, this could result in even more complicated and expensive litigation because property owners would then have to defend against both lien claims as well as any bond claims.
On the positive side, Section 38.1 will definitely streamline litigation. There will be less parties which will save on court costs, service fees, and attorneys fees. Normally, in an action to enforce a mechanics lien claim, the lien claimant is required to name and serve all of the parties in the chain of contract between him or her and the owner plus anyone else with an interest in the property such as a lender, unknown owners and non-record claimants. With a bond in place, the only parties would be the principal and surety on the bond as well as the party the contractor had its agreement with.
This new provision also provides for an award of mandatory attorneys fees which adds liability to the general contractor or owner which did not previously exist.  If a lien claimant recovers at least 75% of its lien claim, it is entitled to recover its attorneys fees incurred. On the other hand, the owner is entitled to its attorneys fees if the claimant recovers less than 25% of its lien claim. This is a big change from Section 17 of the Illinois Mechanics Lien Act (770 ILCS 60/17) which provides for attorneys fees against the original owner (and no one else!) who fails to pay “without any just cause or right”. Section 17 also requires privity between the owner and contractor; Section 38.1 does not.  This change is a huge benefit for subcontractors and material suppliers.
Another major advantage is that there will be money to pay the claim.  Sometimes contractors go out of business or real estate ends up over-encumbered or “under water” by other loans leaving nothing to pay a subcontractor for his or her hard work. With a bond in place, the lien claimant should generally not have to worry about a judgment not being collectible.
A major disadvantage of this new provision is that it can reduce leverage for subcontractors and material suppliers because the threat and pressure of foreclosure would be diminished. However, filing a petition and purchasing a bond has its costs and some owners might still not bother to proceed.   Some owners or developers may also not want to automatically accept liability for any attorneys’ fees incurred by the lien claimant especially if the defenses for non-payment are weak.
The Illinois Mechanics Lien Act still provides a valuable method of recovery for unpaid subcontractors and material suppliers and should still be an important part of an overall collection plan and strategy. A bond still has its advantages as described above. However, in order for an owner to even consider a bond, the claimant still needs to have a valid and enforceable mechanics lien claim against the real estate at issue.
Section 38.1 only applies to private construction projects such as homes, malls, office buildings, stores, condominiums, apartments, factories, etc. This amendment does not apply to public construction projects such as public schools, airports, city parts and municipal buildings.  Section 23 of the Illinois Mechanics Lien Act (770 ILCs 60/23) as well as the Illinois Public Construction Bond Act (30 ILCS 550/1 et seq.) remain unaffected by this new section.
This law has been in effect for a few years and some property owners, tenants and developers have started to take advantage of it especially in the case of a tenant that does not want to be in breach of its lease. In future articles, we will review the actual procedure on how to file the petition (and objection) to substitute a bond for an Illinois mechanics lien claim.
A complete copy of Section 38.1 can be found here:
http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=099-0178
This article was orignialy publishd on October 15, 2015 and updated December 7, 2023.
By:  Mark B. Grzymala, President and Founder
Grzymala Law Offices, P.C.Â