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A GUIDE TO LIEN AND BOND CLAIMS ON ILLINOIS DEPARTMENT OF TRANSPORTATION HIGHWAY CONSTRUCTION PROJECTS

LIEN AND BOND CLAIMS

An unpaid Subcontractor or Supplier may file a claim against the bond or a lien on public funds that become available on the specific contract(s). In some cases it may be necessary to file both a lien and a bond claim. Lien and bond claims require specific steps or actions to be taken by the Subcontractor or Supplier. It may be in your best interest to consult with an attorney prior to taking any such action.

Required Forms

A GUIDE TO LIEN AND BOND CLAIMS ON ILLINOIS DEPARTMENT OF TRANSPORTATION HIGHWAY CONSTRUCTION PROJECTS

LIENS AGAINST PUBLIC FUNDS

Section 23(c) of the Mechanics Lien Act (770 ILCS 60/23) states in part:

"Any person who shall furnish labor, material, services, fixtures, apparatus or machinery, forms or form work to any Contractor having a contract for public improvement for the State, may have a lien for the value thereof on the money, bonds or warrants due or about to become due the Contractor."

A Notice of Claim for Lien on Public Funds:

  • Must contain a sworn statement and/or be notarized.

  • Must identify the contract and specify the unpaid items and the dollar amount claimed for each.

  • Must be served on the Secretary of Transportation, the Prime Contractor and Subcontractor (if applicable) by hand delivery or certified mail (with return receipt requested, delivery to addressee only).

  • Will cause the withholding of the claimed amount from the Prime Contractor for ninety (90) days, but does not force IDOT to pay the lien claimant.

Filing a Notice of Lien is not enough to ensure payment. The Department can hold funds for only ninety (90) days. It is your responsibility (or your attorney's responsibility) to follow the law, as the Department is very limited in what it can do to protect your financial interests.

If the Subcontractor or Supplier is not paid within ninety (90) days after giving such notice, a complaint (lawsuit) must be filed within that same ninety (90) days. The Subcontractor or Supplier must, within ten (10) days after filing suit, notify the Department of the commencement of the suit by delivering a copy of the Complaint (file-stamped by the Clerk of the Court) to the Secretary of Transportation. The document should be delivered by certified or registered mail.

Liens against public funds apply only to monies that become due the contractor after the lien is filed. If you wait to file a lien until the contract is almost complete, there may be insufficient funds available to cover all liens. The Act also states:

    "There shall be no preference between persons giving such notice, but all shall be paid pro rata in proportion to the amount due under their respective contracts".

Any funds available will be shared among all lien holders.

Required Forms

A GUIDE TO LIEN AND BOND CLAIMS ON ILLINOIS DEPARTMENT OF TRANSPORTATION HIGHWAY CONSTRUCTION PROJECTS

BOND CLAIMS

The Public Construction Bond Act (30 ILCS 550/0.01 et. seq.) provides in part:

    "Every person furnishing materials or performing labor, either as an individual or as a subcontractor for any contractor ... where bond shall be executed as provided in this Act, shall have the right to sue on such bond ... for his use and benefit ...".

A Bond Claim:

  • Does not cause IDOT to withhold payment from the Contractor.

  • Preserves claimant's right to sue under bond.

  • Must be filed within 180 days from the last date of furnishing work or materials on the job.

  • Must be served in writing on the Secretary of Transportation, with copies to the Prime Contractor, Subcontractor and the Bonding Company.

  • May need to be followed up by a lawsuit.

A certified copy of the bond will be required in the bond claim process. A written request to the Bureau of Construction is required. You must include the 5 digit IDOT contract number, the Prime Contractor's name, county and section number. Incomplete requests cannot be processed.

Required Forms

A GUIDE TO LIEN AND BOND CLAIMS ON ILLINOIS DEPARTMENT OF TRANSPORTATION HIGHWAY CONSTRUCTION PROJECTS

NOTIFICATION OF FINAL PAYMENT

Effective January 1, 1994, the department no longer required subcontractor releases (form BC 151). Effective May 20, 1998 the department no longer required a contractor's affidavit (form BC 141) prior to final payment on a contract.

Subcontractors or suppliers who wish to receive notification when the department intends to make final payment on a contract should acquire and submit a notification card, Form BC 2246. These cards are available from resident engineers and technicians and from the various district offices.

A GUIDE TO LIEN AND BOND CLAIMS ON ILLINOIS DEPARTMENT OF TRANSPORTATION HIGHWAY CONSTRUCTION PROJECTS

IMPORTANT IDOT ADDRESSES

Secretary of Transportation

Secretary of Transportation

2300 South Dirksen Parkway
Room 300
Springfield, Illinois 62764

100 W. Randolph St.
JRTC 6-600
Chicago, IL 60601

Bureau of Claims

Bureau of Construction

2300 South Dirksen Parkway
Room 313
Springfield, Illinois 62764
(217) 782-6263

2300 South Dirksen Parkway
Room 322
Springfield, Illinois 62764
(217) 782-6667

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