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Contractors Beware! The Illinois Home Repair and Remodeling Act Can Make you Work for Free.

A Recent Decision in the Circuit Court of Cook County dismissed a home remodeling contractor’s claim for $85,000 because he didn’t give the homeowner a Consumer Rights Brochure. With New home construction in deep decline, contractors and home builders who have been kept busy during the housing boom exclusively in new construction are now frequently competing in the home repair and remodeling business to make ends meet. If they aren’t careful the Illinois Home Repair and Remodeling Act may have an unpleasant surprise for them in their new line of business. The Home Repair and Remodeling Act requires that one who is engaged in residential home repair or remodeling provide a brochure identifying 10 contract tips and the basic terms that are to be included in a home repair or remodeling contract and that there must be a written contract for any job over $1,000. Two downstate appellate court cases have held that if a contractor does not comply with these provisions, the court must find the contract void and deny the contractor any claim against a homeowner on the contract as well as any equitable claim to collect against the homeowner for the work performed. Those cases are Smith v. Bogard, 377 Ill.App.3d 842 (4th Dist. 2007) and Central Illinois Electrical Svcs, LLC v. Slepian, 358 Ill.App.3d 545(3rd Dist 2005)

Hon Robert J. Quinn reluctantly dismissed the claims of several contractors who did not comply with the requirement of providing the brochure. In T. Edward Builders, Inc v. Fernando Redondo 07 Ch 35158 a contractor entered into an AIA contract with a homeowner who also happened to be the architect on the project for $666,171.00. The contractor filed a mechanics lien and contract claim against the homeowner/architect to collect an $85,970 balance on the contract. In a well reasoned opinion, Judge Quinn analyzed the Home Repair and Remodeling Act and in encouraging the contractor to seek appellate review of his decision explained that he thought that the legislature did not intend the drastic remedy of voiding the entire contract for every technical violation of the Home Repair and Remodeling Act but that he was required to follow the two downstate appellate decisions and dismiss the contractors entire claim. Judge Quinn encouraged the contractor to appeal his decision to the First District Appellate (which decides Chicago and Cook County, Illinois appeals) and the contractor has done so, but unless the appellate court reverses contractor’s in Illinois work at their own financial risk if they don’t follow each technical requirement of the Act.

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