A general contractor agreement is, as the name implies, generally an agreement between the owner of real estate and a building contractor for services to manage the construction (and sometimes the design) of a residential or commercial building according to certain specifications or plans provided by the owner.

A general contractor agreement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In Illinois, a general contractor agreement is a legally binding contract that outlines the relationship and obligations between a property owner and a general contractor who is hired to manage construction projects. This agreement typically includes detailed provisions regarding the scope of work, materials to be used, the hiring and management of subcontractors, payment schedules, timelines for project completion, insurance requirements, and the handling of mechanic's liens. Illinois law requires certain contracts to be in writing, and this often includes construction contracts, especially when they involve significant sums of money or long-term projects. The Illinois Mechanics Lien Act provides a legal framework for the filing and enforcement of liens to ensure that contractors and subcontractors are paid for their services and materials. It is important for both parties to clearly understand and agree upon the terms outlined in the contract to avoid disputes and ensure compliance with state laws and regulations.