Construction Payment Disputes in Illinois
Illinois construction law provides multiple statutory remedies for contractors, subcontractors, and suppliers who are not paid for their work. The right remedy depends on three factors: whether the project is public or private, where you sit in the contracting chain, and how much time has passed since you last furnished labor or materials.
The Illinois Mechanics Lien Act (770 ILCS 60) is the foundational statute governing payment rights on private construction projects. It allows eligible claimants to record a lien against the improved property — a security interest that can ultimately force a judicial sale if the debt remains unpaid. For public projects, where government property cannot be liened, parallel remedies exist under the Public Construction Bond Act (30 ILCS 550) and the lien on public funds provisions of 770 ILCS 60/23.
Every one of these remedies imposes strict procedural requirements and firm deadlines. Illinois courts apply a "strict compliance" standard, meaning that even a minor defect — a late notice, an incorrect property description, a misspelled owner name — can result in the complete loss of the claim. That is why acting quickly and working with an experienced construction law attorney is critical.
Mechanic Lien Filing and Enforcement
A mechanic lien is the most powerful payment remedy available on private construction projects in Illinois. When properly filed, it encumbers the title to the property where labor or materials were furnished, preventing the owner from selling or refinancing until the lien is addressed. If the debt remains unpaid, the lien claimant can file a foreclosure action to force a judicial sale of the property.
Eligible claimants include general contractors, subcontractors, sub-subcontractors, material suppliers, architects, engineers, and land surveyors. Each role carries different notice requirements and deadlines. General contractors must record their lien within four months of their last furnishing date. Subcontractors must generally also serve a Section 24 notice on the property owner within 90 days, though exceptions may apply for parties listed on the general contractor's sworn statement.
Our comprehensive mechanic lien law guide covers eligibility, notice requirements, recording procedures, and enforcement strategy. For step-by-step filing instructions, see our lien filing process guide.
Mechanic Lien Law Guide
Complete overview of 770 ILCS 60 and your rights
Filing Process
Step-by-step lien preparation and recording
Deadlines & Notices
Every critical timeline organized by role
Subcontractor Rights
Section 24 notice and lien amount limits
Section 24 Notice
90-day subcontractor and supplier notice
Lien Deadlines
Every Illinois mechanic lien deadline
Section 34 Demand
Owner's tool to shorten enforcement deadlines
Mechanic Lien Attorney
File, enforce, and defend mechanic liens
Deadline Calculator
Estimate your key filing dates instantly
Critical Deadlines Under Illinois Construction Law
Missing a single deadline can permanently eliminate your payment rights. Illinois construction law imposes overlapping time limits that depend on your role, the project type, and what notices have been served. The most common deadlines include:
60-Day Residential Notice
On single-family, owner-occupied residences, subcontractors must provide written notice within 60 days of first furnishing labor or materials.
90 Day Notice (Section 24 Notice)
Subcontractors and suppliers generally must serve written notice on the property owner within 90 days of their last furnishing date. Exceptions may apply for parties on the GC's sworn statement.
4-Month Lien Recording Window
The verified claim for lien must be recorded with the County Recorder of Deeds within four months of the claimant's last date of furnishing.
2-Year Enforcement Deadline
A foreclosure lawsuit to enforce the lien must be filed within two years of the claimant's last furnishing date.
Section 34 Demand Letter
If the property owner serves a Section 34 demand, the lien claimant must file suit within 30 days or forfeit the lien entirely.
For a complete breakdown by claimant role, visit our deadline and notice reference. Use our deadline calculator to estimate your key dates based on your last furnishing date.
Section 24 Notices and Section 34 Demands
Two statutory provisions within 770 ILCS 60 create deadlines that frequently determine the outcome of construction payment disputes:
Section 24 Notice
Subcontractors and suppliers who do not have a direct contract with the property owner generally must serve a written notice of their claim within 90 days of their last furnishing date. Failure to serve timely notice can forfeit lien rights entirely.
Section 24 notice guideSection 34 Demand
A property owner can serve a written demand requiring the lien claimant to commence a foreclosure lawsuit within 30 days. If the claimant fails to file suit, the lien is automatically forfeited under the statute.
Section 34 demand guideUnderstanding these provisions is essential for both claimants and property owners. A claimant who misses a Section 24 notice or ignores a Section 34 demand will lose their lien rights permanently. Property owners can use Section 34 strategically to clear stale liens from their title.
Public Project Payment Remedies
Government-owned property is constitutionally exempt from mechanic liens. Illinois law provides two alternative remedies for contractors, subcontractors, and suppliers working on public construction projects:
Payment Bond Claims
Under the Public Construction Bond Act (30 ILCS 550), claimants can recover from the surety company that guaranteed the general contractor's payment obligations. Available on bonded public and private projects.
Payment bond claim guideLien on Public Funds
Under 770 ILCS 60/23, a claimant can "trap" contract funds held by the public body before they are disbursed to the general contractor. Effective when funds remain undisbursed.
Lien on public funds guideIn many cases, pursuing both remedies simultaneously provides the strongest recovery position. Visit our public project remedies hub for a complete framework, or read our public vs private comparison to determine which remedies apply to your project.
Contractor Collections and Demand Letters
Not every payment dispute requires a lien filing. In many cases, a well-crafted demand letter from a construction attorney is the fastest path to payment. A demand letter creates a formal written record of your claim, demonstrates that you understand your legal options, and frequently produces payment without the cost and time of litigation.
When a demand letter alone is not sufficient, we help contractors escalate through the appropriate legal channels — whether that means recording a mechanic lien, filing a payment bond claim, or commencing litigation. The key is acting before your statutory deadlines expire.
Visit our contractor collections hub for collection strategies, or read our demand letter guide to understand when and how a formal demand can accelerate payment.
Contractor Collections Hub
Demand letters, payment recovery, and legal options
Unpaid Contractor Guide
Find the right payment remedy for your project
Construction Law Compliance
Payment recovery starts before the dispute. Contractors, subcontractors, and suppliers who implement proactive compliance practices — tracking notice deadlines, maintaining accurate project documentation, and understanding their contractual obligations — are far more likely to preserve their payment rights when a dispute arises.
Our compliance guide outlines best practices for preserving lien and bond rights throughout the life of a project. For receivables-focused strategies, see our securing construction receivables resource.
Counties We Serve
Emalfarb Law LLC represents construction professionals throughout Northern Illinois. We have extensive experience recording liens and litigating payment disputes in the following jurisdictions:
Chicago
All Chicago neighborhoods and municipal projects
Cook County
Northbrook, Glenview, Skokie, Evanston, Rolling Meadows
Lake County
Waukegan, Deerfield, Highland Park, Lake Forest, Libertyville
DuPage County
Wheaton, Naperville, Oak Brook, Glen Ellyn, Downers Grove
Representative Results
We have recovered payments for general contractors, subcontractors, material suppliers, and design professionals across a wide range of construction project types. Our results include mechanic lien recoveries, payment bond claim settlements, demand letter resolutions, and lien on public funds recoveries. Every case is different, but our track record demonstrates that timely, aggressive action consistently produces better outcomes.
View Construction Law Results
Mechanic lien recoveries, bond claim settlements, and more
Meet Your Illinois Construction Law Attorney
Thomas Emalfarb focuses his practice on Illinois construction law and mechanic lien disputes. He has filed and enforced liens across Cook, Lake, DuPage, Will, and McHenry counties, represented subcontractors and suppliers in payment bond claim proceedings, and counseled contractors on compliance and receivables management. He is the author of the Illinois Construction Law Manual and Forms, a practitioner reference published by IICLE.
Learn more about our attorneys or view our publications.