Tinley Park Construction Attorneys | Construction Lawyers, Tinley Park

In this video, our Tinley Park construction attorneys explain guaranteed maximum price contracts in construction, including allowances, contingencies, schedules of values, and change orders in GMP contracts. In a guaranteed maximum price contract, the contractor will charge the owner the cost of the labor and materials plus a percentage of that cost for profit. The total cost to the owner may be less than the guaranteed maximum price, but it will not exceed it. Unlike a lump sum contract wherein a contractor is paid a flat fee for the work, the guaranteed maximum price contract allows the owner to potentially save money if the project ends up costing less than estimated.

In this article, our Tinley Park construction dispute attorneys explain the purpose of Mechanic Liens are to ensure that contractors and subcontractors who provide labor, materials, or machinery to improve real estate receive payment for their services and materials. Mechanics Liens are available to subcontractors on public construction projects as well as private projects. Mechanics Liens on public projects are governed by 770 ILCS 60/23. While a lien on private property is placed on the real estate itself, a lien on a public project is placed on the amounts due to the general contractor from the governmental organization in question. Mechanics Liens are not available to general contractors on public projects. A series of steps must be followed by the holder of a Mechanics Lien by strict deadlines in order to prevent the holder from losing his or her lien rights. This is called "perfecting"a Mechanics Lien. In addition to the recording and enforcement deadlines required of general contractors, subcontractors are required to send additional notices in order to perfect their Mechanics Liens.

In this article, our Tinley Park construction attorneys explain how general contractor agreements contain provisions based on the project. However, it is important that there is included clauses such as contract price, the scope of work, time to completion, allowances, change orders, and payment and performance bonds.