September 09, 2010
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Penalties for using an illegal construction contract in Kentucky:
  • Omission of the Retail Installment Sale notices and disclosures required by Kentucky Revised Statutes § 371.220 and § 371.300 is a misdemeanor punishable by a fine of up to $500 or by imprisonment for up to 6 months or both.
  • Omission of the Home Solicitation Sales Act notice in Kentucky Revised Statutes § 367.410 to § 367.460 extends the right to cancel indefinitely.
  • Omission of the Opportunity to Repair Act notice in Kentucky Revised Statutes § 411.260 forfeits protection offered by the act.
  • Kentucky Revised Statutes § 371.160 requires that retainage be held in an escrow account at a bank.
  • Kentucky's Fairness in Construction Act, Revised Statutes § 371.400 to § 371.425, voids any clause in a construction contract that prohibits a claim for damages resulting from delay caused by the owner.
  • Kentucky Revised Statutes § 371.405 requires that contractors be paid within 30 business days after delivery of a valid invoice and that subcontractors be paid within 15 business days after the prime contractor is paid. Regardless of what the contract says, interest accrues at 12% on delinquent payments. Attorney fees can be awarded if suit is necessary to enforce § 371.405.
  • Kentucky Revised Statutes § 371.405(2)(b) voids any clause in a construction contract that would waive lien rights.
  • Kentucky Revised Statutes § 371.180 voids any contract clause which would indemnify a contractor for that contractor's own negligence.
  • 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 Kentucky contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Kentucky and federal court decisions.

Kentucky Construction Contracts Available Now
Title Bias Contract Type Page Length
KY Commercial Construction I Light bias in favor of the contractor. Prime 31
KY Commercial Construction II Light bias in favor of the owner. Prime 12
KY Commercial Repair Neutral. Prime 16
KY Commercial Subcontract I Light bias in favor of the subcontractor. Subcontract 27
KY Commercial Subcontract II Light bias in favor of the contractor. Subcontract 13
KY Custom Home I Light bias in favor of the contractor. Prime 21
KY Custom Home II Light bias in favor of the owner. Prime 27
KY Home Improvement I Moderate bias in favor of the contractor. Prime 25
KY Home Improvement II Moderately favors the owner. Prime 30
KY Home Repair I Heavy bias in favor of the contractor. Prime 13
KY Home Repair II Heavy bias in favor of the owner. Prime 19
KY Pool Neutral. Prime 20
KY Public Works Subcontract Moderate bias in favor of the contractor. Subcontract 31
KY Residential Subcontract I Light bias in favor of the subcontractor. Subcontract 11
KY Residential Subcontract II Light bias in favor of the contractor. Subcontract 18
KY Tenant Improvement Neutral. Prime 12
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