Builder-Associate Resources

Public Act 97-0235

Amends the Illinois Roofing Industry License Act

*NEW*  Enables local code enforcement official to issue violation


Amends the Home Repair and Remodeling Act


“CATASTROPHE” means: flood, drought, earthquake, tornado, windstorm or hailstorm.






Enables homeowner to cancel contract “prior to midnight on the fifth business day” after receiving notice from insurance company that any part of the claim or contract is not a covered loss.


Enables homeowner to cancel contract up to the 30 days after receipt of “a properly executed proof of loss” by the insurer.



"You may cancel this contract at any time before midnight on the earlier of the fifth business day after you have received written notification from your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy or the thirtieth business day after your insurer has received properly executed proof(s) of loss from you. See attached notice of cancellation form for an explanation of this right." 



Upon executing a contract, a home repair or remodeling contractor shall furnish each insured a fully completed form in duplicate, containing the caption, "NOTICE OF CANCELLATION", which shall be attached to the contract but easily detachable, and which shall contain boldface type of a minimum size of 10 points the following statement with the appropriate fields completed by the  contractor: 



            If you are notified by your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy, you may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written notice to (name of contractor) at (address of contractor's place of business) at any time prior to midnight on the earlier of the fifth business day after you have received such notice from your insurer or the thirtieth business day after your insurer has received properly executed proof(s) of loss from you. If you cancel, any payments made by you under the contract, other than payments for goods or services related to a catastrophe which you agreed in writing to be necessary to prevent damage to your property, will be returned to you within 10 business days following receipt by the contractor of your cancellation notice. 






            (insured's signature)".




Employee Classification Act

On 1/1/08 the Employee Classification Act went into effect, creating one more piece of legislation for the construction industry.  820ILCS 185/1.  The Act/s stated purpose is "to address the practice of misclasifying employees as independent contractors."  Under the new law any individual performing services for a contractor is "deemed an employee" unless it is shown the individual is free from the contractors control, the individual's service is outside the scope of the contractor's work, the individual is in an established trade and the individual is deemed a sole proprietor if it is established the individual operates truly as an independent contractor.  To show legitimacy of classification the Act requires an independent contractor to establish twelve factors. (Addressing each of the factors is outside the scope of this summary).  In addition to direct contractors all subcontractors must comply with the requirements of the Act.  

The Act imposes notice requirements upon contractors and subcontractors.  Any entity, contractor or subcontractor, whom hires individuals not classified as employees must post, on each job site, a notice in English, Spanish and Polish, prepared by the Department of Labor, summarizing the requirements of the Act.  The Department of Labor shall furnish copies of the summary without charge.  Without any additional clarification any job site, with multiple subcontractors, may contain multiple notices.
The penalties for failing to comply with the Act are severe.  Any "interested party" may file a complaint with the Department of Labor if there is a "reasonable belief" there is a violation.  Any violation may result in the imposition of criminal charges and money damages.  A first time offender is subject to a civil penalty not to exceed $1,500.00; a repeat violation is subject to a penalty not to exceed $2,500.00.  A violation subjecting one to the penalty shall be calculated for each day and each person.  The potential damages for a violation of the Act can be substantial depending on the number of days a violation occurred and the number of employees misclassified.  To encourage compliance the Act allows an interested person to recover 10% of the civil penalty.
The Act allows for an interested person to assert a direct cause of action against the employer in addition to any action by the Department of Labor.  Significantly, the Act allows for the recovery of direct damages, liquidated damages (an amaount equal to the actual damages), compensatory damages and all attorney's fees and costs.  Therefore, even a minor violation could result in substantial liability exposure.  This provision provides an incentive for trial lawyers to prosecute even minor violations, as they will be entitled to the recovery of their attorney fees.

This Act, although quietly enacted and arguably with good intentions, as the potential to be used offensively by some individuals and exploited by trial lawyers.  If a contractor hires individuals, as employees, or hires independent contractors, knowledge of the Act is essential.



Lead Certification 
Go to Latest News on the Home Page of this site to download all the information on Lead Certification and training available.


NEW RADON AWARENESS Law effective January 1, 2008
The Radon Awareness Act recently took effect on January 1, 2008 and imposes additional duties on sellers of residential property.  In short, a seller of residential property must provide two documents to a prospective home buyer.
1.)  A pamphlet entitled "Radon Testing Guidelines for Real Estate

Transactions"; and 

Both docuemnts are availablefrom the Illinois Emergency Management Agency (IEMA) Division of Nuclear Safety, the agency charged with enforcement of the Act and canb e downloaded at the above links.

Nothing in the Act requires a seller to test for radon or to engage in any "mitigation activities". The only requirements of the Act are that the seller provides the pamphlet and the disclosure form to the seller.  It should be noted, however, that it is the seller's obligation to comply with the requirmeents of the Act.  Furthermore, a buyer is not bound by a contract to purchase real estate if the seller fails to provide these two documents to the buyer.

In detail, the Act states that the seller must "complete the required disclosure activities prior to accepting the buyer's offer and allow the buyer the opportunity to review the information and possibly amend the offer".  If the disclosrue is not made prior to the acceptance and execution of the offer, the buyer will not become obligated under the contract to purchase the residential property.  This would not preclude a buyer, however, from proceeding to close on the purchase notwithstanding the seller's failure to disclose.  There are no penalty provisions in the Act.