September 09, 2010
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Penalties for using an illegal construction contract in Arkansas:
  • Arkansas Code Annotated § 17-25-508 requires that the name on the contract for residential work be the name under which the license is listed with the Residential Building Contractors Committee. Use of any other name makes the contract unenforceable and subjects the contractor to a fine of up to $200 under Arkansas Code Annotated § 17-25-103.
  • Failure to make the disclosures required by Arkansas Code § 4-89-101 to § 4-89-110 (home improvement) is punishable by up to one year in prison and a fine of up to $1,000. In addition, the owner can recover ten percent of the contract price or $100, whichever is greater, plus actual damages, including incidental, consequential, and special damages. Failure to comply is also an unfair and deceptive act or practice under Arkansas Code § 4-88-101 to 4-88-706, giving an owner the right to sue for triple damages and attorney fees.
  • Failure to make federal truth in lending disclosures required by 15 United States Code § 1638 makes the creditor liable for both the overcharge and the debtor's attorney fees.
  • 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 Regulation § 460 can result in an $11,000 fine.
The contracts linked below will help Arkansas contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Arkansas and federal court decisions.

Arkansas Construction Contracts Available Now
Title Bias Contract Type Page Length
AR Commercial Construction I Light bias in favor of the contractor. Prime 37
AR Commercial Construction II Light bias in favor of the owner. Prime 16
AR Commercial Repair Neutral. Prime 21
AR Commercial Subcontract I Light bias in favor of the subcontractor. Subcontract 33
AR Commercial Subcontract II Light bias in favor of the contractor. Subcontract 17
AR Custom Home I Light bias in favor of the contractor. Prime 26
AR Custom Home II Light bias in favor of the owner. Prime 33
AR Home Improvement I Moderate bias in favor of the contractor. Prime 31
AR Home Improvement II Moderately favors the owner. Prime 35
AR Home Repair I Heavy bias in favor of the contractor. Prime 14
AR Home Repair II Heavy bias in favor of the owner. Prime 24
AR Pool Neutral. Prime 24
AR Public Works Subcontract Moderate bias in favor of the contractor. Subcontract 38
AR Residential Subcontract I Light bias in favor of the subcontractor. Subcontract 15
AR Residential Subcontract II Light bias in favor of the contractor. Subcontract 21
AR Tenant Improvement Neutral. Prime 16
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