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Understanding Debt Collection in Construction Litigation

 Posted on November 17, 2023 in Uncategorized

Chicago Construction Litigation LawyerConstruction projects can be complex endeavors involving multiple parties and significant financial investments. Unfortunately, disputes and payment issues can arise, leading to the need for debt collection through construction litigation. In Illinois, understanding the legal landscape surrounding this process is crucial for both contractors and property owners alike. If you are interested in obtaining legal representation for debt collection purposes in a construction litigation matter, contact an experienced lawyer to assist you.

Mechanic Liens 

These powerful tools are available to contractors and suppliers to secure payment for their work or materials. In Illinois, the Mechanics Lien Act provides a legal framework for filing and enforcing these liens. To protect their rights, contractors must adhere to specific notice and filing requirements within strict timeframes. On the other hand, property owners should be aware of the potential risks associated with mechanics liens and take proactive measures to mitigate them.

Breach of Contract Claims 

Construction projects are typically governed by contracts, which outline the rights and obligations of all parties involved. A breach of contract claim may arise when one party fails to fulfill their contractual obligations. In Illinois, these claims can be pursued through construction litigation to seek damages. Understanding the elements of a breach of contract claim and the legal remedies available is important for both contractors and property owners alike. 

Prompt Payment Act

Illinois has enacted the Prompt Payment Act to protect contractors and subcontractors from payment delays. This legislation sets forth specific timeframes for payment and provides mechanisms for interest and attorney fees in case of non-compliance. Contractors should be aware of their rights under the Prompt Payment Act and take appropriate legal action if payment is wrongfully withheld. 

Alternative Dispute Resolution

Construction litigation can be very time-consuming and costly. Therefore, exploring alternative dispute resolution methods, such as mediation or arbitration, can be beneficial. These methods offer a more efficient and cost-effective way to resolve disputes, avoiding the need for lengthy court proceedings. 

Contact a Chicago, IL Construction Litigation Attorney

Debt collection through construction litigation in Illinois requires a comprehensive understanding of the legal framework and processes involved. Contractors and property owners should familiarize themselves with mechanic liens, breach of contract claims, and the Prompt Payment Act. Additionally, exploring alternative dispute resolution methods can help expedite the resolution of disputes. To consult with an experienced legal professional, contact the skilled Cook County, IL construction litigation lawyers with Teller, Levit & Silvertrust, P.C.. Call 312-922-3030 for a private consultation today.

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