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When an owner does not pay does the general contractor file separate liens for the entire amount owed or does each file?

IllinoisConstruction Contract

I'm a general contractor hired by an owner and I have multiple subcontractors with signed agreements for the project. The client has not paid for over 2 months and lien notices are going out. The owner has been requesting signed lien waivers, material receipts and proof of construction expenses etc. none of that is part of our (Owner / GC) agreement. He is also reaching out to subs bypassing the GC requesting this information. Is this legally allowable (request and subcontractor contact)? We are under a signed agreement.

2 replies

Dec 21, 2022

You ask if an Owner can demand GC and Sub waivers of lien when doing so is not provided for in, or required by, the parties' contract. The short answer is "Yes," he can. The Owner is entitled to such waivers of lien by law. 

However, lien waivers must be accurate when issued. If the GC, Subs, or Material Suppliers have not been paid, then they are under no obligation to issue waivers. If they have, then yes, they must.

More importantly, it sounds as if you have an issue with an Owner stepping on your toes. You should probably get a Lawyer to set the Owner straight: these actions could be characterized as interference with contractual relations. Just my two cents.

Best of luck!

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Dec 27, 2022
If the owner signed a contract with you, and you signed contracts with subs and therefore owe the subs, you can lien for all of the work. If the subs remain unpaid, they can also lien for what they are owed. The law and rules for GC’s vs Subs is dramatically different. You should consult with a lawyer to properly perfect any mechanics liens or run the risk of forfeiture of the lien rights.
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