What to Do If a Construction Contract Is Breached in Illinois

As a construction contract attorney in DuPage County, I’ve helped many clients who found themselves facing a serious problem: a builder, contractor, or subcontractor failed to live up to the terms of their agreement. 

Whether it’s unfinished work, poor workmanship, missed deadlines, or defective materials, a breach of a construction contract can leave you dealing with unexpected costs and long delays. If you’ve invested time and money into a building project and things aren’t going as promised, it’s important to understand your rights under Illinois law—and what steps you can take to protect yourself.

In Illinois, construction contracts are legally binding agreements. When one party fails to fulfill their part of the agreement, that failure can be grounds for a lawsuit. Construction contract disputes often involve both breach of contract claims and violations of the implied warranty of habitability or workmanship. 

Under Illinois law, there are several remedies available, including monetary damages, contract termination, or specific performance, depending on the circumstances of your case.

Understanding The Legal Meaning Of Breach Of Contract

A breach of contract occurs when one party does not perform as agreed in a signed construction contract. This might involve failing to complete work on time, using substandard materials, ignoring building codes, or walking off the job. For a contract to be enforceable in Illinois, it must include clear terms such as the scope of work, price, payment schedule, and time for completion.

When a builder or contractor fails to meet those obligations, the law allows the non-breaching party to pursue a legal remedy. Under 815 ILCS 505/2 of the Illinois Consumer Fraud and Deceptive Business Practices Act, a contractor can also be held accountable for deceptive practices or misrepresentations made during the sale or performance of the contract.

Builder Warranty Obligations In Illinois

Illinois law also recognizes certain warranties in construction projects, even if they are not explicitly stated in the contract. The most common is the implied warranty of habitability, which applies primarily to new residential construction. This warranty requires that the home be suitable for living and constructed in a reasonably workmanlike manner. Under Illinois case law (e.g., Petersen v. Hubschman Construction Co., 76 Ill.2d 31 (1979)), homeowners may sue builders if major structural defects exist, even without a written warranty.

Builders can also offer express warranties—written guarantees that spell out what repairs or coverage are provided for a certain period. If a builder fails to honor these warranties, that too can be considered a breach.

Steps You Should Take If A Construction Contract Is Breached

If you believe your construction contract has been breached, I recommend taking the following actions:

• Review your written contract carefully, including any amendments, specifications, and warranty terms.
• Document the problem with photos, timelines, communications, and receipts.
• Notify the contractor in writing of the breach and give them an opportunity to correct the issue, if appropriate.
• Contact a construction attorney to review your contract and assess your legal options.
• Consider filing a claim in civil court or with the Illinois Attorney General’s Consumer Protection Division if fraud or deception is involved.

Breach Of A Construction Contract Frequently Asked Questions

What Counts As A Breach Of A Construction Contract In Illinois?

A breach may occur when the contractor fails to complete work, uses improper materials, misses deadlines, walks off the job, or fails to follow building codes. If their actions violate the terms of your signed agreement, you may have a claim.

Can I Sue My Builder If They Provided Poor Workmanship?

Yes. If the work is below reasonable industry standards or creates safety issues, you may have grounds for a claim under breach of contract or breach of warranty. Illinois law provides remedies for both.

Is There A Warranty For New Home Construction In Illinois?

Illinois recognizes an implied warranty of habitability for new homes. This means the builder is responsible for delivering a home that is livable and built in a workmanlike way, even if there’s no written warranty.

What Should I Do Before Filing A Lawsuit Against A Contractor?

Start by documenting all issues and reviewing your contract. Then, send a written notice of the problem to the contractor. If they fail to fix it, talk to an attorney who can assess your rights and next steps.

Can A Builder Limit Their Liability In A Contract?

Some contracts try to waive or limit certain warranties. However, under Illinois law, courts may not enforce a waiver of the implied warranty of habitability unless it is clear, knowing, and made voluntarily.

How Long Do I Have To File A Construction Contract Lawsuit In Illinois?

The statute of limitations for breach of a written contract in Illinois is typically ten years under 735 ILCS 5/13-206. For oral contracts, it’s five years under 735 ILCS 5/13-205. You should act quickly to preserve your rights.

Can I Recover Attorney’s Fees In A Construction Contract Dispute?

Only if your contract includes a clause allowing recovery of attorney’s fees, Illinois courts generally follow the “American Rule,” meaning each party pays their own fees unless the contract or statute says otherwise.

What If My Contractor Won’t Respond Or Walked Off The Job?

That can be considered a material breach of contract. You may be entitled to hire someone else to finish the work and seek damages for the extra costs through a lawsuit.

Does Illinois Law Protect Me Against Contractor Fraud?

Yes. Under the Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505/2), you can pursue damages if the contractor misrepresented services, failed to disclose defects, or engaged in deceptive conduct.

Can I Terminate A Contract If The Builder Breached It?

If the breach is serious and affects the purpose of the contract, you may be able to terminate the agreement and sue for damages. Always speak with a lawyer before taking this step.

Call Our DuPage County Construction Contract Lawyers For Legal Assistance

At Keller Law Group, LLC, we’ve worked with homeowners, developers, and contractors across Illinois to resolve construction disputes with confidence. If your project has been delayed, poorly executed, or outright abandoned, we’re ready to step in and help you protect your investment.

Contact our DuPage County construction contract lawyers at Keller Law Group, LLC, by calling 630-868-3093 to receive your free consultation. We represent clients in Chicago and throughout the state of Illinois. Let us review your contract and help you take action the right way.