Can a Contractor Stop Work for Nonpayment in Illinois? Rights, Risks, and Requirements

You have not been paid in weeks. Maybe months. The owner keeps saying the check is coming. The general contractor blames the owner. Meanwhile, you are paying your crew, buying materials out of pocket, and financing someone else's project with your own money.

At some point, every contractor in this position asks the same question: can I just stop working?

The short answer is yes - Illinois law gives contractors and subcontractors the right to suspend work when they are not getting paid. But how you stop matters as much as whether you stop. Walk off the job without following the right steps, and you could turn a payment dispute into a breach of contract claim against you.

Illinois Law Gives You the Right to Stop Work

The Illinois Contractor Prompt Payment Act (815 ILCS 603) does more than just require timely payments on private construction projects. It gives contractors and subcontractors the legal right to suspend work when payments are overdue - without that suspension being treated as a breach of contract.

Here is how it works. If a contractor or subcontractor has performed work that was approved and payment is not made within the required timeframe, the unpaid party can:

1. Send written notice to the party responsible for payment, stating that payment has not been received
2. Wait 10 days after the notice is delivered
3. Suspend work if payment still has not been made

That suspension is legally protected. You cannot be terminated for cause solely because you exercised your right to stop work under the Act.

The Written Notice Is Not Optional

The single most important step is the written notice. You cannot just stop showing up. If you suspend work without providing proper written notice and waiting the required 10 days, you lose the statutory protection - and the other side can argue you abandoned the project or breached the contract.

Your notice should include:

• A clear statement that payment is overdue, identifying the specific invoices or amounts
• The date payment was due under the contract or the Prompt Payment Act
• A statement that you intend to suspend work if payment is not received within 10 days
• The date of the notice

Send it by certified mail with return receipt. Keep a copy of everything. If this ends up in court, you will need to prove that notice was sent, when it was sent, and what it said.

When the Act Applies - and When It Does Not

The Prompt Payment Act covers a wide range of private construction projects in Illinois. But there are situations where the stop-work right does not apply or gets more complicated:

Public projects. The Prompt Payment Act (815 ILCS 603) applies to private projects. Public construction is governed by the Local Government Prompt Payment Act (50 ILCS 505) and State Prompt Payment Act (30 ILCS 540), which have their own payment timelines but do not contain the same express stop-work provision.

Residential projects with 12 or fewer units. The Act excludes single-family residences and multi-family buildings with 12 or fewer units. On smaller residential projects, your right to suspend work depends on your contract terms and common law principles - not the statute.

Disputed amounts. The Act's protections apply to work that has been "satisfactorily completed." If the owner or GC is withholding payment because they dispute the quality or completeness of your work, a stop-work action carries more risk than one over a clearly undisputed, overdue payment.

What Your Contract Says Still Matters

Even with statutory protection, your contract plays a major role. Look for these clauses before making any decisions:

Cure and notice provisions. Many contracts require written notice and a specific cure period before taking action. If your contract says 14 days' notice, follow the contract - use whichever period is longer than the statute's 10 days.

No-damage-for-delay clauses. Some contracts limit a contractor's right to recover costs caused by delays. If you stop work and the project falls behind, the other side may try to use this against you.

Termination for cause provisions. If your contract defines unauthorized work stoppage as grounds for termination, stopping work outside the statutory framework could give the owner or GC the right to terminate and hire a replacement at your expense.

Pay-if-paid clauses. If your subcontract contains a pay-if-paid clause, the general contractor may argue that payment is not yet due because the owner has not paid them. Illinois courts enforce these clauses when the language is clear and unambiguous, which can complicate your right to stop work.

On large Chicago developments, upstream funding delays are common. A GC blaming the owner does not automatically excuse nonpayment unless your subcontract contains enforceable conditional language - and even then, Illinois courts look closely at the specific wording. If you are a subcontractor working in the Chicago area and you are not getting paid, check your contract for the words "condition precedent" or "contingent upon" before assuming you have no options.

Protect Your Lien Rights Before You Stop

One of the biggest risks of stopping work is what happens to your mechanics lien rights while the project is paused.

Your lien deadlines run from the last date you performed labor or delivered materials. When you suspend work, the clock keeps ticking. If you stop working in March and the dispute drags into June, your deadlines are calculated from March - not from whenever the dispute gets resolved.

Contractors who stop work expecting a quick resolution sometimes discover months later that their lien deadlines have passed.

Before you suspend work:

• Calculate your lien deadlines based on your actual last date of substantive work
• If you are a subcontractor, serve your Section 24 notice on the owner within 90 days
• Record your mechanics lien within four months, even if you expect to return to the project
• Document everything - the notice, the date you stopped, and the reason

You can always release a lien later if the dispute resolves. You cannot retroactively file one after the deadline has passed.

The Risks of Getting It Wrong

Contractors who stop work improperly can face real consequences:

Breach of contract claims. Stopping without proper notice can expose you to damages including the cost of hiring a replacement contractor - which is almost always more expensive than what you were charging.

Termination and backcharges. An improper stoppage can give the other side grounds to terminate for cause, withhold remaining payments, and backcharge you for completion costs.

Loss of lien rights. A prolonged stoppage can result in missed lien deadlines. Without lien rights, your leverage drops significantly.

When to Stop - and When Not To

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The general principle: the longer the nonpayment, the larger the amount, and the clearer the obligation to pay, the stronger your position.

What to Do Before You Stop Working

Step 1: Review your contract. Look at payment terms, notice provisions, cure periods, and any clauses about suspension or termination.

Step 2: Calculate your lien deadlines. Know exactly when they expire. If they are approaching, file now - before you stop, not after.

Step 3: Send written notice. Identify the overdue payments, state your intent to suspend in 10 days (or the contract's cure period if longer), and send by certified mail.

Step 4: Wait the full notice period. Do not stop the day after you send the notice.

Step 5: Document the suspension. Record the date, the reason, and the jobsite condition. Take photos. Secure your materials and equipment.

Step 6: Keep the door open. Make clear you are willing to resume once payment is made. The goal is to get paid, not to burn the project down.

You Do Not Have to Keep Financing Someone Else's Project

Contractors are not banks. Illinois law recognizes that, which is why the Prompt Payment Act includes the right to suspend work. But exercising that right requires discipline. Follow the notice requirements. Protect your lien deadlines. Document everything.

And if the situation is complicated - a pay-if-paid clause, a disputed change order, or a question about whether your project falls under the Act - get legal advice before you stop showing up. The cost of a consultation is a fraction of what you stand to lose if you get the process wrong.