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Penalties for using an illegal construction contract in Louisiana:
- A contract which does not comply with the Home Improvement Act subjects a contractor to discipline and administrative penalties that include suspension or revocation of a license and a fine of $100 or 25% of the contract price, whichever is greater. (Louisiana Revised Statutes § 37:2175.4).
- Payment terms which don't comply with Louisiana Revised Statutes § 9:2784 will incur a penalty of 1/2 of 1% per day (up to 15%) plus the applicable interest rate and attorney fees.
- Louisiana Revised Statutes § 9:3145 requires that the owner be given a description of Louisiana's New Home Warranty Act but (as yet) prescribes no penalty for failure to comply.
- Omission of the waiver allowed by Louisiana Revised Statutes § 9:3144-B(18) makes a contractor liable for damage caused by soil conditions or soil movement.
- Louisiana Revised Statutes § 9:2779 voids any attempt to apply the law of another state or resolve disputes in another state if the project is located in Louisiana.
- Any contract clause which limits liability for intentional or gross fault is void under Louisiana Civil Code Article 2004.
- 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 Louisiana contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Louisiana and federal court decisions.
The contracts linked below comply with the following Louisiana and federal laws:
- Attorney fees -- Louisiana Revised Statutes § 9:2784 and § 9:3149
- Cancellation of contract -- Louisiana Civil Code Articles 2766 and 2767
- Choice of law -- Louisiana Revised Statutes § 9:2779
- Claims for extra work -- Louisiana Civil Code Articles 2763 and 2764
- Consequential damages -- Louisiana Civil Code Articles 1996 and 1997 and Revised Statutes § 9:2775
- Construction defects -- Louisiana Civil Code Article 2762
- Contractor claim for delay -- Louisiana Revised Statutes § 38:2216 and Louisiana Civil Code Article 2004
- Excavation -- Louisiana Revised Statutes § 40:1749.13
- Fixed price contracts -- Louisiana Civil Code Article 2756
- Home improvement contracts -- Louisiana Revised Statutes, § 37:2175.1 to § 37:2175.6
- Implied warranty -- Louisiana Civil Code Article 2769 and Louisiana Revised Statutes § 9:2774
- Indemnity -- Louisiana Revised Statutes § 38:2216
- Insulation disclosure -- 16 Code of Federal Regulation § 460
- Interest rates -- Louisiana Revised Statutes § 9:2784 and § 13:4202
- Liability for loss -- Louisiana Civil Code Articles 2758, 2759 and 2760
- Lien rights -- Louisiana Civil Code Articles 2770, 2771, 2773 and 2774
- Liquidated damages -- Louisiana Civil Code Article 2005 and 2012
- Louisiana Prompt Payment Statute -- Louisiana Revised Statutes § 9:2784
- New Home Warranty Act -- Louisiana Revised Statutes § 9:3141 to § 9:3150
- Obligations for contractor -- Louisiana Civil Code Articles 1983, 1994 and 1995.
- Peremption period -- Louisiana Revised Statutes § 9:2772A and § 38:2189
- Plan defects -- Louisiana Revised Statutes § 9:2771
- Prescriptive period -- Louisiana Civil Code Article 3500
- Retainage -- Louisiana Revised Statutes § 38:2248 and § 9:4822(M)
- Right of rescission -- 12 Code of Federal Regulations § 226.15
- Termination of contract -- Louisiana Civil Code Articles 2765 and 2013
- Third party rights -- Louisiana Civil Code Article 1978
- Time and material contracts -- Louisiana Civil Code Article 2757
- Time for payment -- Louisiana Revised Statutes § 38:2191
- Truth in lending -- 15 United States Code § 1638
- Venue -- Louisiana Revised Statutes § 9:2778
Return to Penalties for Illegal Contracts in Louisiana.
The contracts linked below conform with current Louisiana and federal court decisions.
The contracts linked below comply with the following Louisiana and federal court decisions:
- Attorney fees -- Rivnor Properties v. Herbert O'Donnell, Inc., 633 So. 2d 735, 1994
- Consequential damages -- Heath v. Brandon Homes, Inc., 825 So. 2d 1262, 2002
- Constructive acceleration -- Nat Harrison Associates, Inc. v. Gulf States Utilities Co., 491 F.2d 578, 1974
- Contractor claim for delay -- Pellerin Construction, Inc. v. Witco Corp., 169 F. Supp. 2d 568, 2001
- Contractor claims for delay -- Melka Marine Inc. v United States, 187 F.3d 1370, 1999
- Indemnity -- Orlando v. E.T.I., 15 So. 3d 951, 2008
- Lien rights -- Shaw Constructors, Inc. v. ICF Kaiser Engineers, Inc., 395 F.3d 533, 2004
- Liquidated damages -- S.J. Lemoine, Inc. v. St. Landry Parish School Board, 527 So. 2d 1150, 1988
- New Home Warranty Act -- Hutcherson v. Harvey Smith Construction, Inc., 7 So. 3d 775, 2009
- Omission in the plans -- Colbert v. B.F. Carvin Construction Co., 600 So. 2d 719, 1992
- Pay if paid -- Construction v. Centex Landis Construction Co., 707 So. 2d 500, 1998
- Pay when paid -- Southern States Masonry, Inc. v. J. A. Jones Construction Co., 507 So. 2d 198, 1987
- Payment for extra work -- L & A Contracting Co. v. Ram Industrial Coatings Inc., 762 So. 2d 1223, 2000
- Peremption period -- August v. Grand Lake Construction, 837 So. 2d 78, 2002
- Peremption period, public works -- State v. McInnis Bros. Construction, 701 So. 2d 937, 1997
- Prescriptive period -- New Hotel Monteleone, Inc. v. First Nat'l Bank of Commerce, Inc., 423 So. 2d 1305, 1982
- Shortened peremption period --Contours Unlimited v. Board of Commissioners, 630 So. 2d 916, 1993
- Slow payment -- Cajun Constructors, Inc. v. Fleming Construction Co., 951 So. 2d 208, 2006
- Termination of contract -- Professional Construction Services, Inc. v. Lee M. Marcello, 550 So. 2d 968, 1989
Return to Penalties for Illegal Contracts in Louisiana.
Return to construction contract laws in Louisiana.
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