IL SB3023

Prohibits agreements to waive or subordinate mechanics liens when made in anticipation of or as consideration for awarding a contract, as such agreements are against public policy and unenforceable.

Creates an exception allowing subordination of a mechanics lien to a mortgage lien securing a construction loan if the agreement is made after more than 50% of the loan has been disbursed to fund property improvements.

Clarifies that lien waiver provisions in contracts between contractors and subcontractors are binding only if the provision is not otherwise prohibited by the Mechanics Lien Act.

Maintains existing protections for subcontractors and material suppliers, including notification requirements to owner-occupants of single-family residences within 60 days of commencing work.

Retains the rule that payment conditions from other parties cannot be used as a defense against lien claims brought by subcontractors or suppliers.