September 09, 2010
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Penalties for using an illegal construction contract in Illinois:
  • The Home Repair and Remodeling Act imposes a fine up to $2,500 for beginning work before a contract is signed. 815 Illinois Compiled Statutes section 513/15.
  • The Consumer Fraud and Deceptive Business Practices Act imposes a two-year prison sentence and a fine up to $2,500 for using an incorrect business name or business address in a contract.
  • The Consumer Fraud and Deceptive Business Practices Act gives the owner the right to demand return of all payments if work is not started and finished as provided in the contract. 815 Illinois Compiled Statutes 505/2Q(c). Punishment can result in a suspension of the right to do business in Illinois and a fine of up to $50,000. Section 505/7(c). The owner can sue to recover any loss and collect punitive damages, attorney fees and court costs. Section 505/10a.
  • The Home Repair Fraud Act imposes a fine of up to $2,500 and two years in prison for (1) misrepresenting material facts about the job or (2) making false promises about the job, or (3) charging more than four times the fair market value of the work or (4) failing to comply with the building code. 815 Illinois Compiled Statutes Section 515/3.
  • Any contract clause which would indemnify someone against their own negligence is void. 740 Illinois Compiled Statutes 35/1
  • Any contract clause which attempts to waive lien rights before the work is done is void. 770 Illinois Compiled Statutes 60/1(d).
  • Any contract clause which excuses payment of a subcontractor until the prime contractor has been paid is void. 770 Illinois Compiled Statutes 60/21(e).
  • Any agreement to arbitrate is void if specific language is omitted. 815 Illinois Compiled Statutes 513/15.1
  • 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 Section 226.15 extends the right of rescission to three years (rather than three days).
  • Omitting insulation disclosures required by 16 Code of Federal Regulations Section 460 can result in an $11,000 fine.
The contracts linked below will help Illinois contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Illinois and federal court decisions.

Illinois Construction Contracts Available Now
Title Bias Contract Type Page Length
IL Commercial Construction I Light bias in favor of the contractor. Prime 33
IL Commercial Construction II Light bias in favor of the owner. Prime 17
IL Commercial Repair Neutral. Prime 21
IL Commercial Subcontract I Light bias in favor of the subcontractor. Subcontract 37
IL Commercial Subcontract II Light bias in favor of the contractor. Subcontract 16
IL Custom Home I Light bias in favor of the contractor. Prime 20
IL Custom Home II Light bias in favor of the owner. Prime 27
IL Home Improvement I Moderate bias in favor of the contractor. Prime 25
IL Home Improvement II Moderately favor the owner. Prime 29
IL Home Repair I Heavy bias in favor of the contractor. Prime 12
IL Home Repair II Heavy bias in favor of the owner. Prime 19
IL Pool Neutral. Prime 20
IL Public Works Subcontract Moderate bias in favor of the contractor. Subcontract 36
IL Residential Subcontract I Light bias in favor of the subcontractor. Subcontract 16
IL Residential Subcontract II Light bias in favor of the contractor. Subcontract 21
IL Tenant Improvement Neutral. Prime 16
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