September 09, 2010
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Penalties for using an illegal construction contract in Maryland:
  • Section 8-620 of Maryland's Home Improvement Law authorizes the Home Improvement Commission to collect a civil penalty of $5,000 for omission of any required notice or disclosure from a home improvement or home repair contract. Section 8-623 makes violation of the Home Improvement Law a misdemeanor punishable by a fine of $1,000 and 6 months in jail.
  • Omission of any disclosure or notice required by New Home Warranties Act, Maryland Real Property Code Annotated § 10-601 to § 10-610, can result in a fine of up to $50,000 and two years in prison under § 10-609. In addition, § 10-608 makes violation of the New Home Warranties Act an unfair and deceptive trade practice under Maryland's Consumer Protection Act, giving a home owner the right to sue for damages and collect attorney fees. Maryland Commercial Law Code Annotated § 13-408.
  • Failure to include an accurate "Certification by Builder" statement in a contract is a felony under § 10-507-b-2 of Maryland's Custom Home Protection Act and makes the contractor eligible for a fine up to $10,000 and 15 years in prison (§ 10-507-b-2). Section 10-507-b-3 makes omission of any disclosure required by Maryland Real Property Code Annotated § 14-117(j) or any other notice required by Maryland's Custom Home Protection Act a misdemeanor punishable by a fine of up to $1,000 and a year in prison. If omitting a disclosure or notice has resulted in a financial loss to a home owner, a court may order the defendant to stop working as a construction contractor (§ 10-507-c). Section 10-507-a makes violation of the Custom Home Protection Act an unfair and deceptive trade practice under Maryland's Consumer Protection Act, giving a home owner the right to sue for damages and collect attorney fees under Maryland Commercial Law Code Annotated § 13-408.
  • Maryland Courts and Judicial Proceedings Code Annotated § 5-401(a) voids any clause in a construction contract which would indemnify someone against their sole 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 Maryland contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Maryland and federal court decisions.

Maryland Construction Contracts Available Now
Title Bias Contract Type Page Length
MD Commercial Construction I Light bias in favor of the contractor. Prime 31
MD Commercial Construction II Light bias in favor of the owner. Prime 14
MD Commercial Repair Neutral. Prime 17
MD Commercial Subcontract I Light bias in favor of the subcontractor. Subcontract 27
MD Commercial Subcontract II Light bias in favor of the contractor. Subcontract 13
MD Custom Home I Light bias in favor of the contractor. Prime 30
MD Custom Home II Light bias in favor of the owner. Prime 33
MD Home Improvement I Moderate bias in favor of the contractor. Prime 30
MD Home Improvement II Moderately favors the owner. Prime 33
MD Home Repair I Heavy bias in favor of the contractor. Prime 16
MD Home Repair II Heavy bias in favor of the owner. Prime 21
MD Pool Neutral. Prime 22
MD Public Works Subcontract Moderate bias in favor of the contractor. Subcontract 29
MD Residential Subcontract I Light bias in favor of the subcontractor. Subcontract 11
MD Residential Subcontract II Light bias in favor of the contractor. Subcontract 18
MD Tenant Improvement Neutral. Prime 12
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