Reciprocal Attorney’s Fees in Residential Construction Contracts
Overview
Illinois House Bill 0024, enacted by the 104th General Assembly in spring 2025 and signed into law by Governor J.B. Pritzker, amends the Home Repair and Remodeling Act to establish reciprocal attorney’s fees for home repair contracts. The amendment takes effect immediately.
Substance of the Amendment
The addition of Section 31 to the Illinois Home Repair and Remodeling Act (815 ILCS 513/31) provides that:
- If a contract for home repair or remodeling governed by the Act includes an attorney’s fees provision, such clause must—and will be deemed to—allow recovery of reasonable attorney’s fees by all parties to the contract, regardless of which party prevails in any dispute .
- The amendment overrides any existing contractual language that limits fee recovery to one party, ensuring reciprocity.
- This applies to contracts executed on or after the effective date.
Contractors and Homeowners
Contracts subject to the Home Repair and Remodeling Act must now be drafted with full awareness that an attorney’s fees clause will operate to benefit both parties. This development may:
- Encourage out-of-court resolution efforts;
- Increase developers’ diligence in contractual drafting; and
- Potentially raise negotiation leverage on both sides;
- Reconsider even adding an attorney fee provision in their contracts.
Attorneys
Attorneys advising either homeowners or contractors should:
- Review existing form contracts for compliance;
- Reassess litigation risk analysis, noting that both parties can now recover fees; and
- Incorporate clear terms regarding fee caps, calculation, and alternative dispute resolution options into new agreements.
Courts and Enforcement
Illinois trial courts will interpret attorney-fee provisions in covered contracts through the lens of this statutory mandate. Disputes over “reasonableness” of fees may become more prominent, underscoring the importance of detailed billing and alignment with local standards.
Policy & Practical Significance
HB 0024 reflects a growing regulatory trend toward fairness and transparency in consumer contracts. By ensuring symmetrical access to fee recovery, the law seeks to level the playing field in disputes that may otherwise disproportionately burden individual homeowners.
From a policy standpoint it promotes contractual equity and procedural fairness. Also, it may deter frivolous litigation while also empowering parties to enforce their rights.
Conclusion
House Bill 0024 introduces a meaningful reform in Illinois consumer contract law by mandating reciprocal fee recovery under the Home Repair and Remodeling Act. Legal practitioners, contractors, and homeowners must now recalibrate their drafting and dispute-resolution strategies accordingly.