ILCS » Chapter 770 · Act 60
Illinois Compiled Statutes

770 ILCS 60/27 (2026)

When the owner or his agent is notified as provided in this Act, he shall retain from any money due or to become due the contractor, an amount sufficient to pay all demands that are or will become due such sub-contractor, tradesman, materialman, mechanic, or worker of whose claim he is notified, and shall pay over the same to the parties entitled thereto

✓ current as of May 2026
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(770 ILCS 60/27) (from Ch. 82, par. 27)
    Sec. 27. When the owner or his agent is notified as provided in this Act, he shall retain from any money due or to become due the contractor, an amount sufficient to pay all demands that are or will become due such sub-contractor, tradesman, materialman, mechanic, or worker of whose claim he is notified, and shall pay over the same to the parties entitled thereto.
    Such payment shall be as follows:
    First - All claims for wages shall be paid in full.
    Second - The claims of tradesmen, materialmen and sub-contractors, who are entitled to liens pro rata, in proportion to the amount due them respectively. All payments made as directed shall, as between such owner and contractor, be considered the same as if paid to such contractor. Any payment made by the owner to the contractor after such notice, without retaining sufficient money to pay such claims, shall be considered illegal and made in violation of the rights of the laborers and sub-contractors and the rights of such laborers and sub-contractors to a lien shall not be affected thereby, but the owner shall not be held liable to any laborer and sub-contractor or other person whose name is omitted from the statement provided for in Sections 5 and 22 of this Act, nor for any larger amount than the sum therein named as due such person (provided such omission is not made with the knowledge or collusion of the owner), unless previous thereto or to his payment to his contractor, he shall be notified, as herein provided, by such person of their claim and the true amount thereof.
    Third - The balance, if any, to the contractor.
(Source: P.A. 91-357, eff. 7-29-99.)

    
Notes of Decisions
Cited in 13 cases, 1996–2015 · leading case: Weather-Tite, Inc. v. Univ. of St. Francis, 909 N.E.2d 830 (Ill. 2009).
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Weather-Tite, Inc. v. Univ. of St. Francis, 909 N.E.2d 830 (Ill. 2009). “) 770 ILCS 60/27 (West 2004). It is clear that section 27 applies to notice of a subcontractor’s claim received as a result of a section 5 contractor’s sworn statement.”
Weather-Tite, Inc. v. Univ. of St. Francis, 892 N.E.2d 49 (Ill. App. Ct. 2008). · cites it 4× “770 ILCS 60/27 (West 2004); see Knickerbocker Ice Co.”
Crawford Supply Co. v. Schwartz, 919 N.E.2d 5 (Ill. App. Ct. 2009). “2d at 392 , quoting 770 ILCS 60/27 (West 2004). The supreme court found that section 27 applies to notice of a subcontractor’s claim received as a result of a section 5 contractor’s sworn statement.”
All. Steel, Inc. v. Piercy, 660 N.E.2d 1341 (Ill. App. Ct. 1996). · cites it 2× “(770 ILCS 60/27 (West 1994).) A subcontractor who relies on the contractor's sworn written statement accordingly puts his trust in the contractor.”
Gateway Concrete Forming Sys., Inc. v. Dynaprop XVIII: State Street LLC, 826 N.E.2d 1051 (Ill. App. Ct. 2005). “770 ILCS 60/27 (West 2002); see Krzyminski v.”
Bricks, Inc. v. C & F Developers, Inc., 836 N.E.2d 743 (Ill. App. Ct. 2005). “3d 655, 659 (1989); see also 770 ILCS 60/27 (West 2002) (stating that an owner is protected against subcontractors not listed or amounts understated on the sworn written statement unless those omissions are with the knowledge or collusion of the owner); Sanaghan v.”
GX Chicago, LLC v. Galaxy Env't, Inc., 2015 IL App (1st) 133624 (Ill. App. Ct. 2015). · cites it 2× “” 770 ILCS 60/27 (West 2012). Notably, however, section 27 specifies that “the owner shall not be held liable to any laborer and sub-contractor *** whose name is omitted from the statement provided for in Sections 5 and 22 of this Act, nor for any larger amount than the sum…”
Doors Acquisition, LLC v. Rockford Structures Constr. Co., 2013 IL App (2d) 120052 (Ill. App. Ct. 2013). “Finally, section 27 outlines the preferences after an owner receives a lien, providing: “When the owner or his agent is notified as provided in this Act, he shall retain from any money due or to become due the contractor, an amount sufficient to pay all demands that are or will…”
BX Chicago, LLC v. Galaxy Env't, Inc., 2015 IL App (1st) 133624 (Ill. App. Ct. 2015). · cites it 2× “" 770 ILCS 60/27 (West 2012). Notably, however, section 27 specifies that "the owner shall not be held liable to any laborer and sub-contractor *** whose name is omitted from the statement provided for in Sections 5 and 22 of this Act, nor for any larger amount than the sum…”
Gerdau Ameristeel US, Inc. v. Broeren Russo Constr., Inc., 2013 IL App (4th) 120547 (Ill. App. Ct. 2013). · cites it 2× “That fact triggered application of section 27 of the Act [(770 ILCS 60/27 (West 2010))], requiring Campus to ensure that the subcontractors and material suppliers be paid.”
Weather-Tite v. Univ. of St. Francis (Ill. App. Ct. 2008). “See 770 ILCS 60/27 (West 2004); Contractors’ Ready Mix, 242 Ill.”
Bricks, Inc. v. C&F Developers, Inc. (Ill. App. Ct. 2005). “3d 655, 659 (1989); see also 770 ILCS 60/27 (West 2002) (stating that an owner is protected against subcontractors not listed or amounts understated on the sworn written statement unless those omissions are with the knowledge or collusion of the owner); Sanaghan v.”
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