September 09, 2010
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Penalties for using an illegal construction contract in Delaware:
  • Under Delaware's Building Construction Payments Act (6 Delaware Code § 3501 to § 3509), all prime construction contracts must include a clause (1) requiring payment within 30 days after the end of each billing period and (2) setting an interest penalty if payments are not made when due. Failure to include the required language is an unclassified misdemeanor punishable by a fine of $575 and a 30-day sentence under 11 Delaware Code § 4206(c).
  • Using anything other than the contractor's true name and address on a home improvement contract is a Class A misdemeanor under 11 Delaware Code § 916-b-5 and is punishable by up to one year in prison and a fine of up to $2,300.
  • Title 6 Delaware Code § 2704 voids any clause in a construction contract which would indemnify anyone against their own sole negligence.
  • In contracts for improvements to land only (such as curbs or sidewalks), 25 Delaware Code § 2703 denies lien rights if there is no written agreement.
  • Title 6 Delaware Code § 3507 voids any contract clause which would make payment of a subcontractor contingent on payment by the owner.
  • Omission of 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.
  • Omission of disclosures required by 12 Code of Federal Regulations § 226.15 extends the 3-day right of rescission to three years under 12 Code of Federal Regulations § 226.23(a)(3) and 15 U.S. Code § 1635(f).
  • Omission of insulation disclosures required by 16 Code of Federal Regulation § 460 can result in an $11,000 fine.
The contracts linked below will help Delaware contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Delaware and federal court decisions.

Delaware Construction Contracts Available Now
Title Bias Contract Type Page Length
DE Commercial Construction I Light bias in favor of the contractor. Prime 31
DE Commercial Construction II Light bias in favor of the owner. Prime 12
DE Commercial Repair Neutral. Prime 16
DE Commercial Subcontract I Light bias in favor of the subcontractor. Subcontract 27
DE Commercial Subcontract II Light bias in favor of the contractor. Subcontract 13
DE Custom Home I Light bias in favor of the contractor. Prime 20
DE Custom Home II Light bias in favor of the owner. Prime 26
DE Home Improvement I Moderate bias in favor of the contractor. Prime 25
DE Home Improvement II Moderately favors the owner. Prime 29
DE Home Repair I Heavy bias in favor of the contractor. Prime 13
DE Home Repair II Heavy bias in favor of the owner. Prime 19
DE Pool Neutral. Prime 20
DE Public Works Subcontract Moderate bias in favor of the contractor. Subcontract 31
DE Residential Subcontract I Light bias in favor of the subcontractor. Subcontract 11
DE Residential Subcontract II Light bias in favor of the contractor. Subcontract 18
DE Tenant Improvement Neutral. Prime 12
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