Construction Law

House Bill 219 (Hoffman, D-Belleville; Harmon, D-Oak Park) amends the Wrongful Death Act to allow punitive damages under the Act. It exempts actions against the State or an employee of the State in his or her official capacity, in actions against a unit of local government or an employee of a unit of local government in his or her official capacity, and in actions for healing art malpractice or legal malpractice. It has passed the House and awaiting final action in the Senate. Effective on the Governor’s signature.

(Yednock, D-Ottawa) requires that the Department of Financial and Professional Regulation work with the Illinois Real Estate Lawyers Association and other interested parties to develop a standardized residential real estate contract. Scheduled for hearing this Wednesday in House Judiciary Committee. 

(Morrison, D-Deerfield) amends the Administrative Review Article of the Code of Civil Procedure. Provides that for an action to review a decision of an administrative agency with final decision-making authority over designated historic properties or areas or a decision of an administrative agency with final decision-making authority over exterior design review of buildings or structures, "parties of record" means only the administrative agency and applicants before the administrative agency, and "parties of record" does not mean persons who appeared before and submitted oral testimony or written statements to the zoning board of appeals with respect to the decision appealed. Requires that within two days of filing the action, the plaintiff shall send a notice of filing of the action by certified mail to each other person who appeared before and submitted oral testimony or a written statement to the administrative agency with respect to the appealed decision. Requires that the notice shall state the caption of the action, the court in which the action was filed, and the names of the plaintiff in the action and the applicant to the administrative agency. Requires that the notice shall inform the person of his or her right to intervene. Provides that each person who appeared before and submitted oral testimony or a written statement to the administrative agency with respect to the appealed decision shall have a right to intervene as a defendant in the action upon application made to the court within 30 days of the mailing of the notice. Scheduled for hearing next Tuesday in Senate Judiciary Committee. 

(Evans, D-Chicago; Castro, D-Chicago) amends Public Act 102-1067 as follows: (1) Makes it applicable if the private work’s aggregate costs of the project exceed $20,000. (2) Deletes liability under this Act for a primary contractor to “a third party on a wage claimant’s behalf incurred pursuant to this Act by a subcontractor.” (3) Clarifies that primary contractors who are parties to a collective bargaining agreement on the work being performed is exempt from liability under this Section. (Instead of being exempt from “specified provisions.”) (4) Exempts primary contractors from liability under this Section for the alteration or repair of an existing single-family dwelling or to a single residential-unit in an existing multi-unit structure. (5) Creates the Bond Reform in the Construction Industry Task Force. This Act takes effect June 10, 2022. 

(Evans, D-Chicago; Castro, D-Elgin) amends the Illinois Wage Payment and Collection Act to make a “primary contractor” engaged in construction of a structure to assume and be liable for any debt owed to a claimant incurred under this Act by a subcontractor at any tier acting under, by, or for the primary contractor. House Bill 5412 applies to any contract entered into on or after July 1, 2022. 

It exempts any work performed by a contractor of the federal government, the State, or unit of local government. Provides that the primary contractor's liability under the new provisions extends only to any unpaid wages or fringe or other benefit payments or contributions, including interest owed, penalties assessed by the Department, and reasonable attorney’s fees, but does not extend to liquidated damages. Primary contractors who are parties to a collective bargaining agreement on the work being performed are exempt from specified provisions. Effective June 10, 2022.  
 

(Reick, R-Woodstock; Barickman, R-Bloomington) creates a statutory form for special warranty deeds to standardize the most common form of deed used in commercial real estate practice. Effective January 1, 2023. 

(Ford, D-Chicago; Villivalam, D-Chicago) amends the Illinois Human Rights Act to declare Illinois’ public policy is to prevent discrimination based on source of income in real estate transactions. Defines “source of income” as the lawful manner by which an individual is supported and their dependents are supported. Makes it a civil rights violation for specified discriminatory actions because of an individual’s source of income. Effective January 1, 2023.

(Tarver, D-Chicago; Sims, D-Chicago) is the first major update of the Residential Real Estate Disclosure Act since its enactment in 1994. Among its many changes include allowing for electronic delivery and notice of the disclosure and harmonizes this Act with the newer Illinois Trust Code and the Transfer on Death Instrument Act. It also clarifies that a seller does not waive being exempt if a disclosure report is nevertheless delivered. It also includes additional consumer protections for the buyer. Effective May 13, 2022.