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Penalties for using an illegal construction contract in Alabama:
- Failure to comply with the Miller Act (date for payment) gives the prevailing party the right to collect interest and attorney fees.
- Failure to make federal truth-in-lending disclosures requires restitution of the overcharge.
- Failure to include the disclosures required by 12 Code of Federal Regulations § 226.15 extends the right of rescission to three years (rather than three days).
- Omitting insulation disclosures required by 16 Code of Federal Regulations § 460 can result in an $11,000 fine.
The contracts linked below will help Alabama contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Alabama and federal court decisions.
The contracts linked below comply with the following Alabama and federal laws:
- Code of Alabama § 6-2-15 (time to commence suit)
- Code of Alabama § 6-2-34(4) (statute of limitations)
- Code of Alabama § 6-5-221 (claim for latent defects)
- Code of Alabama § 7-1-201(b)(10) (disclaimer of warranty)
- Code of Alabama beginning at § 8-29-1 (payment and retainage under the Miller Act)
- Code of Alabama beginning at § 35-11-210 (liens and waivers)
- Code of Alabama § 41-16-3 (prompt payment on state jobs)
- 15 United States Code § 1638 (truth in lending)
- 12 Code of Federal Regulations § 226.15 (right of rescission)
- 16 Code of Federal Regulation § 460 (insulation disclosure)
Return to Penalties for Illegal Contracts in Alabama.
The contracts linked below conform with current Alabama and federal court decisions.
The contracts linked below comply with the following Alabama and federal court decisions:
- Attorney fees - King v. Calvert & Marsh Coal Co., 362 So. 2d 889, 1978, Tolar Construction v. Kean Electric, 944 So. 2d 138, 2006
- Choice of law - Crane & Sons v. Malouf Construction, 953 So. 2d 366, 2006
- Claims for delay - E. C. Ernst, Inc. V. Manhattan Construction Company, 551 F.2d 1026, 1977
- Defective work - McFadden v. Ten-T Corporation, 529 So. 2d 192, 1988
- Differing site conditions - Medical Clinic of Birmingham-Crestwood v. E. E. Smelley, 408 So. 2d 1203, 1981
- Liability for a plan defect - Aldridge v. Valley Steel Construction, 603 So. 2d 981, 1992
- Liquidated damages - Camelot Music v. Marx Realty, 514 So. 2d 987, 1987
- Pay when paid - Hartford Accident & Indemnity v. Cochran Plastering, 935 So. 2d 462, 2006, James E. Watts and Sons Contractors v. Nabors, 484 So. 2d 373, 1985
- Payment for delay - Commercial Contractors, Inc. V. U. S. Fidelity & Guaranty, 524 F.2d 944, 1975
- Payment for extra work - Abercrombie & Williams v. Vandiver, 126 Ala. 513, 1899
- Warranty - Desouza v. Lauderdale, 928 So. 2d 1035, 2005, Turner v. Westhampton Court, 903 So. 2d 82, 2004
Return to Penalties for Illegal Contracts in Alabama.
Return to construction contract laws in Alabama.
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