Welcome to our Mechanics Lien Workshop

Burton A. BrownBabak Bakhtiari

Maria HernandezThe Law Offices of Burton A. Brown

205 W. Wacker Dr., Suite 922Chicago, IL 60606

The Anatomy of a Job

New Job

• How bad do you want this job?

What do you know about the job?

• Who is the owner?• Who is the general?• Where is the money coming from?• Is there a bond? Get a copy of it!• Is your contract in writing? Make sure it is!

Contract Review

• Special Clauses to look at:– Insurance Clause– Indemnification Clause– Venue for Dispute Resolution

Special Home Remodeling Notice

• IF you are doing a home remodeling job...• MAKE SURE you get a contract in writing, AND

enclose the special notice to the homeowner• Home Repair & Remodeling Act:

815 ILCS 513/1 et seq.– Requires written contract– MUST include consumer rights brochure– IL Sup. Ct.: Act applies to Generals only, not subs

Documentation

• Keep detailed invoices• Time sheets, Payroll, executed pay estimates,

proof of delivery tickets: have them, keep them

• Document your last day of non-punchlist work• Keep portions of contracts that reflect the

work was required

Dispute Resolution

• Mediation• Arbitration• Court

Completion Dates

• What if delayed?– Consequences

• Send letter to General and/or Architect

The Sinking Ship

• No Lien• No Notice to Public

Body• No Bond Claim

New Issues in Contract Clauses

• OSHA – Who is in control or in charge?• Monitor other adjoining subs

Follow the Plans and Specs

• Don’t Look / Don’t Tell

• Reliance – Implied Warranty

When Lightning Strikes

• Bond Claim – 6 months• Mechanics Lien Claim – 90 days for Subcontractor– 120 days for General

• Contract Claim – 2 years

Special Notices

• Subcontractors: 60-day notice to owners of residential homes!

• General contractors: send Sworn Statement along with notice of lien

• IF owner sends demand, you must file your lien notice within 30 days!

To Be Continued…

Thank You for Joining Us.

Burton A. BrownBabak BakhtiariMaria Hernandez