Every state has enacted consumer protection laws that put residential construction contractors at a disadvantage. Omit from your contract any of the notices and disclosures required by state or federal law and you risk a fine or even jail time. Worse, the contract may be unenforceable — leaving you with no right to collect.
Every state has unique requirements. Some states are much more stringent than others. Nevada has extremely strict requirements for swimming pool contracts. Texas requires a two-page disclosure statement. Pennsylvania's Home Improvement Consumer Protection Act requires a long list of disclosures in the contract — like start and finish dates, names and addresses of subs, insurance coverage and a phone number for the Pennsylvania Bureau of Consumer Protection. In Florida, omitting the Homeowner's Construction Industry Recovery Fund notice risks a $500 fine. In California and Oregon, omit any of a half-dozen disclosures and you risk discipline by the state license board. Many states prohibit arbitration if your contract omits a special arbitration notice. Twenty seven states require a home solicitation act notice in the contract. If work is on an owner-occupied dwelling, the Reg Z notice is required in all 50 states and the District of Columbia.
The construction contractor is liable for any defect in a residential construction contract. The property owner has no risk at all. Let Construction Contract Writer ensure that you comply with both state and federal law on every job — residential, commercial, industrial or public works subcontract.
You might get by for a while using a two-page “legal in every state” contract — or no contract at all. But the first time there’s a disagreement, you're going to learn an expensive lesson.
Download Construction Contract Writer to start drafting the contracts needed for your jobs. Keep your contracts on file. Deliver a contract — ready to sign — every time you deliver a bid.
State and federal laws change. Construction Contract Writer covers all of the 50 U.S. states and the District of Columbia. The licensed version includes automatic updates throughout the year. You’ll be notified when a change in the law affects your contracts.
– Chuck P.
– Ed S., Admiral Construction Inc.
– E. Lawson