Whether you’re a general contractor (GC), subcontractor, or property owner, understanding Illinois lien waivers is crucial. These essential documents function as receipts acknowledging payment up to a specific amount, thereby waiving the party’s right to file a lien against the property for that amount. While the concept is straightforward, the practical application of lien waivers can be complex.
Several types of lien waivers exist, each requiring submission at specific times during a project. (For a deeper dive into lien waiver basics, refer to The Ultimate Guide to Construction Lien Waivers for Subcontractors.) Moreover, lien waiver requirements vary by state, with each jurisdiction setting its own rules regarding valid forms, contents, and enforcement.
It’s vital to familiarize yourself with state-specific lien waiver requirements to ensure compliance, prevent payment disputes, and ultimately protect your rights (and your bottom line). So grab your hard hat, and let’s dive into the world of Illinois lien waivers!
(For more general information on lien waivers, check out this on-demand webinar: End the Whack-a-Mole: Lien Waiver Best Practice for Subs.)
When it comes to lien waivers, some states do not regulate them at all, while others dictate the forms to be used, the timing, and other key details. Illinois sits somewhere in the middle; while there is no specific or statutory lien waiver form in the state, Illinois outlines select lien waiver requirements within the Illinois Mechanic’s Lien Act.
Illinois protects subcontractors by stipulating that parties can’t waive lien rights in the contract. Both parties need to sign lien waiver forms by way of express agreement: a clearly outlined contractual document that details lien waiver rights and the exchange being made. Make sure to review the contract in full, and call out any clauses that don’t offer necessary protections.
Some additional need-to-know information for handling lien waivers in Illinois:
- Waivers must clearly state the amount being waived and the property to which they apply. (Review basic lien waiver contents here.)
- In Illinois, both conditional and unconditional lien waivers are accepted—though conditional are preferred. Contractors should supply conditional lien waivers with progress pay apps. Unconditional lien waivers should only be used once the contractor has been paid in full. This absolves the contractor of any liens on the property once work has concluded.
Illinois does not require a specific or statutory lien waiver form.
Both conditional and unconditional lien waivers are accepted in Illinois; however, the state prefers conditional lien waivers (which protect lien rights until payment is received).
Both conditional and unconditional lien waivers are accepted in Illinois; however, the state prefers conditional lien waivers (which protect lien rights until payment is received).
Even though Illinois state law doesn’t outline a specific lien waiver form, any lien waiver created in the state is only valid if it’s completed by express agreement—a clear contract in which both parties outline lien rights.
In Illinois, waiving lien rights in the contract isn’t permitted. If both parties agree to it, however, a mechanic’s lien can be subordinated, which would function as waiving lien rights. (For more info, check out Section 21 of the Illinois Mechanics Lien Act.)
Illinois has no specific statutory provision prohibiting the waiving of lien rights prior to payment.
Completing Lien Waivers in Siteline
- Create, monitor, and track all your lien waivers in one place.
- Automatically fill out and send the right waiver at the right time.
- Request lower-tier lien waivers from all your sub-tier contractors, vendors, and suppliers—individually or in bulk.
- Securely collect e-signatures, with automatic reminders for any unsigned waivers.
- Package and submit signed waivers to your GCs directly within Siteline.
Illinois doesn’t regulate its lien waivers with specific or statutory forms. However, lien waivers must be completed by express agreement, with the terms of the exchange clearly stated by both parties. Review your contract thoroughly and request the removal of any clauses that leave subcontractors unprotected.
While Illinois doesn’t have specific statutory requirements for lien waivers, a lien waiver is only considered valid when:
- It clearly states the amount being waived and the property to which it applies,
- The party waiving their lien rights signs it,
- It is completed by express agreement, and
- Both conditional and unconditional lien waivers are accepted, though conditional waivers are preferred in the state of Illinois. Brush up on when to send each to ensure full payment protection in our lien waiver guide.
Illinois doesn’t specify when the initial lien waiver must be exchanged. The state prefers that parties use conditional lien waivers, or waivers that are exchanged with payment applications. Due to the lack of standardized lien waiver forms in Illinois, it's recommended contractors submit a conditional waiver, protecting their lien rights until they’re paid. An unconditional lien waiver should only be used once payment has been received and verified. Determine timing for the initial lien waiver based on contract terms or construction best practices.
To understand the types of lien waivers and when you can use them, refer to this comprehensive guide.
Since Illinois doesn’t mandate any specific or statutory lien waiver forms, this means lien waiver provisions can be added to the contract. However, parties cannot waive subcontractors’ lien rights in this document.
If there is a dispute over a lien waiver, review the lien waiver form and corresponding contract in full. Illinois statutes dictate that subcontractors can bring their case to the circuit court (see Sections 4 and 9) in the county where the work is being performed, and the state will often side with subcontractors.
For added protection in Illinois, clients can request that general contractors share a “sworn statement.” This document lists all subcontractors on the project and their payment amounts per the contract. This document can help prevent legal disputes from moving to the court system, as it clearly outlines who was paid and when. If the issue cannot be resolved between both parties, reach out to a construction law attorney familiar with Illinois state laws.
While Illinois lien waiver laws are (mostly) unregulated, here are a few resources to dive deeper into state statutes:
Automate the process with Siteline. Contractors use our lien waiver tool to digitize all of their lien waiver forms (primary and vendor), send waiver requests to lower-tier contractors and vendors, collect e-signatures, and submit completed waivers to their clients—without ever leaving the system. Siteline even provides centralized tracking to help contractors monitor vendor waiver statuses to see who’s received the form, who’s opened it, and who has (or hasn’t) signed. This means contractors can collect waivers faster while eliminating payment delays caused by compliance holds.
Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. We recommend you consult a qualified attorney for advice specific to your situation.