Payment Bond Claims on Chicago Public Projects
On public construction projects in Chicago, mechanic liens cannot attach to government-owned property. Instead, the Illinois Public Construction Bond Act (30 ILCS 550) requires general contractors on most public projects to post payment bonds — providing security for subcontractors, suppliers, and other participants who furnish labor or materials.
Emalfarb Law LLC represents contractors, subcontractors, and material suppliers in filing and enforcing payment bond claims on Chicago and Cook County public works projects. From City of Chicago infrastructure to CTA transit construction and Chicago Public Schools capital improvements, we help our clients navigate the notice requirements and deadlines that govern bond claim recovery.
If you are unsure whether your project is public or private, our public vs. private construction claims guide explains how to determine which payment remedy applies.
How a Chicago Payment Bond Claim Works
Filing a payment bond claim on a Chicago public project involves four key steps. Strict compliance with notice and timing requirements is essential.
Identify the Bond
On public construction projects, the general contractor is typically required to post a payment bond under the Illinois Public Construction Bond Act (30 ILCS 550) or local ordinances. Your first step is to obtain a copy of the bond and identify the surety.
Serve Timely Notice
Subcontractors and suppliers who do not have a direct contract with the general contractor must serve written notice on the general contractor within 90 days of their last furnishing of labor or material. Missing this deadline can forfeit your bond claim.
File the Bond Claim
A payment bond claim must be filed within the statutory deadline — typically 180 days from last furnishing. The claim is made against both the general contractor (principal) and the surety company that issued the bond.
Pursue Enforcement
If the surety denies or delays your claim, a lawsuit may be necessary. Bond claim litigation in Cook County follows specific procedural rules, and the venue will generally be the Circuit Court of Cook County for Chicago projects.
Chicago Public Projects Where Bond Claims Apply
Chicago has one of the most active public construction programs in the country. Bond claims are the primary payment remedy on these projects.
City of Chicago Capital Projects
Streets, bridges, water mains, and municipal buildings. These projects are governed by local procurement ordinances and the Illinois Public Construction Bond Act, requiring contractors to post payment bonds.
CTA and Transit Infrastructure
Chicago Transit Authority projects — station renovations, track work, bus facilities — are public projects where mechanic liens do not attach. Unpaid contractors must pursue payment bond claims or liens on public funds.
Chicago Public Schools Construction
CPS capital improvement projects, new school buildings, and facility upgrades involve public funds and bonded contracts. Subcontractors and suppliers on CPS projects must follow bond claim procedures.
O'Hare and Midway Airport Expansions
Airport construction and modernization projects are among the largest public works in the Chicago area. Multiple tiers of subcontracting make bond claim notice requirements critical for lower-tier participants.
Bond Claims vs. Liens on Public Funds
On Chicago public projects, two payment remedies may be available simultaneously: a payment bond claim against the surety and a lien on public funds against the contract proceeds still held by the public body under 770 ILCS 60/23.
Pursuing both remedies at the same time is often the strongest strategy, as it creates pressure on multiple fronts — the surety, the general contractor, and the public body holding the funds. However, the notice requirements and deadlines differ for each remedy, so careful coordination is essential.
For a comprehensive comparison of public project payment remedies, visit our public construction project remedies hub.
Why Hire a Bond Claim Attorney for Chicago Public Projects
Bond claim notice and filing deadlines are strict — missing a deadline by even one day can forfeit your claim entirely.
Chicago public projects often involve multiple tiers of subcontracting, making it difficult to identify the correct bond and surety without legal assistance.
Surety companies routinely deny or delay legitimate bond claims, and an attorney can negotiate directly or file suit in Cook County Circuit Court.
An experienced construction law attorney can pursue bond claims and liens on public funds simultaneously, maximizing your leverage.
We handle the document preparation, notice service, and bond claim filing so you can focus on your next project.