Construction contracts sometimes include a provision called a lien waiver that attempts to get a contractor or subcontractor to waive their rights to file a mechanics lien against the property. Some construction companies may argue that a lien waiver is a valid part of the contract. However, Illinois law disagrees.
Under Illinois law, courts regularly will not enforce a lien waiver because it is contrary to public policy and the Illinois Mechanics Lien Act. The Mechanics Lien Act provides that no contract for construction services shall include a lien waiver provision. The law’s intention is to protect contractors and sub-contractors who perform work on a property and are not paid for their labor and materials.
If your construction contract contains a lien waiver and you are worried about getting paid for your firm’s work on the project, you should consider consulting a Chicago mechanics lien lawyer to discuss your case.