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Penalties for using an illegal construction contract in Iowa:
- Omission of the mechanics' lien notice required by Iowa Code § 572.13 can result in the loss of all mechanics' lien rights.
- Failure to create a private statute of limitations can make a contractor liable for latent construction defects for 15 years.
- No matter what the contract says, Iowa Code § 573.12 sets a deadline for payment of subcontractors on public works projects.
- Without a clause making time of the essence of the contract, Iowa courts will not compensate a contractor for most delays. Peter Kiewit Sons' Co. v. Iowa Southern Utilities Co., 355 F. Supp. 376, (S.D. Iowa) 1973
- 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 right of rescission to three years (rather than three days).
- 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 Iowa contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Iowa and federal court decisions.
The contracts linked below comply with the following Iowa and federal laws:
- Insulation disclosure -- 16 Code of Federal Regulation § 460
- Interest rate -- Iowa Code § 535.2
- Mechanics' lien notice -- Iowa Code § 572.13
- Payment of subcontractors -- Iowa Code § 572.30
- Payment of subcontractors -- Iowa Code § 573.12
- Right of rescission -- 12 Code of Federal Regulations § 226.15
- Statute of limitations -- Iowa Code § 614.1
- Truth in lending -- 15 United States Code § 1638
Return to Penalties for Illegal Contracts in Iowa.
The contracts linked below conform with current Iowa and federal court decisions.
The contracts linked below comply with the following Iowa and federal court decisions:
- Attorney fees -- Hockenberg Equip. Co. v. Hockenberg's Equip. & Supply Co., 1993 Iowa Sup. LEXIS 271
- Choice of law -- Cole v. State Auto. & Casualty Underwriters, 1980 Iowa Sup. LEXIS 925
- Choice of law -- Gabe's Construction Co. v. United Capitol Ins. Co., 1995 Iowa Sup. LEXIS 211
- Claims for delay -- Owen Construction Co. v. Iowa State Dep't of Transp., 1979 Iowa Sup. LEXIS 881
- Compensation for delay -- Peter Kiewit Sons' Co. v. Iowa Southern Utilities Co., 355 F. Supp. 376, (S.D. Iowa) 1973
- Consequential damages -- R.E.T. Corp. v. Frank Paxton Co., 1983 Iowa Sup. LEXIS 1373
- Contractor claims for delay -- Melka Marine Inc. v United States, 187 F.3d 1370, 1999
- Defect in the plans -- Midwest Dredging Co. v. McAninch Corp., 1988 Iowa Sup. LEXIS 152
- Excusable delay -- Kaltoft v. Nielsen, 252 Iowa 249, 1960
- Implied warranty -- Munson v. Brueck Construction, 2008 Iowa App. LEXIS 99
- Indemnity -- Evans v. McComas-Lacina Construction Co., 2002 Iowa Sup. LEXIS 43
- Limitations period -- Nicodemus v. Milwaukee Mutual Insurance Co., 2000 Iowa Sup. LEXIS 121
- Liquidated damages -- Rohlin Construction Co. v. Hinton, 1991 Iowa Sup. LEXIS 377
- Pay only if paid -- Grady v. S. E. Gustafson Construction Co., 251 Iowa 1242, 1960
- Payment for extra work -- A & W Electric Contractors v. Petry, 1998 Iowa Sup. LEXIS 73
- Rights of third parties -- Westinghouse Electric Corp. v. Mill & Elevator Co., 254 Iowa 874, 1962
- Sole satisfaction -- Employee Benefits Plus v. Des Moines Gen. Hospital, 1995 Iowa App. LEXIS 69
- Statute of limitations -- Brown v. Ellison, 1981 Iowa Sup. LEXIS 922
Return to Penalties for Illegal Contracts in Iowa.
Return to construction contract laws in Iowa.
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