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Penalties for using an illegal construction contract in Maine:
- Omission of any of the 14 notices and disclosures required by § 1487 of the Home Construction Contracts Act makes the contractor liable for a civil penalty of at least $100 and not more than $1,000. § 1490(2). Omission of any required notice or disclosure is also an unfair trade practice, making the contractor liable for damages plus attorney fees and costs.
- Failure to make the disclosure required by § 14506 of the Home Repair Transient Sales Act makes the contractor liable for a fine of up to $2,000, imprisonment for up to one year and is also an unfair trade practice, giving the owner the right to sue for any loss that occurs and collect attorney fees.
- A fine of up to $1,000 and imprisonment for up to 6 months can be imposed for failure to give the notice required by § 4662 of the Consumer Solicitation Sales Act.
- A subcontract which does not disclose payment dates under the prime contract the makes the prime contractor liable for payment to a subcontractor even if the prime contractor is not paid. Maine Revised Statutes Annotated Title 10 § 1114(2).
- Under § 1483 of the Insulation Contractor Act, failure to provide 14 disclosures makes the contractor eligible for a fine of not less than $200 for the first offense and not less than $500 for each subsequent offense. In addition, violation of the Act is an unfair trade practice, giving the owner the right to recover any loss and collect attorney fees.
- Section 14704(2) of the Transient Sales Act makes failure to disclose the transient seller's license number and permanent place of business is punishable by (1) a fine of up to $2,000 and (2) imprisonment for up to one year and (3) is also an unfair trade practice, giving the owner the right to sue for any loss and collect attorney fees.
- Maine's Prompt Pay Act makes unenforceable any payment term which does not comply with Revised Statutes Annotated Title 10 § 1111 to § 1120.
- 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 Maine contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Maine and federal court decisions.
The contracts linked below comply with the following Maine and federal laws:
- Consumer Solicitation Sales Act -- Maine Revised Statutes Annotated Title 32 § 4661 to § 4671
- Excavation -- Maine Revised Statutes Annotated Title 23, § 3360-A(3)
- Fraud (limitations) -- Maine Revised Statutes Annotated Title 14 § 859
- Home Construction Contracts Act – Maine Revised Statutes Annotated Title 10 § 1486 to § 1490
- Home Repair Transient Sales Act -- Maine Revised Statutes Annotated Title 32 § 14501 to § 14513
- Insulation Contractor Act -- Maine Revised Statutes Annotated Title 10 § 1481 to § 1484
- Insulation disclosure -- 16 Code of Federal Regulation § 460
- Interest rate -- Maine Revised Statutes Annotated Title 14 § 1602-C
- Prompt Pay Act – Maine Revised Statutes Annotated Title 10 § 1111 to § 1120
- Right of rescission -- 12 Code of Federal Regulations § 226.15
- Statute of Limitations -- Maine Revised Statutes Annotated Title 11, § 752, § 2-725
- Transient Sales Act -- Maine Revised Statutes Annotated Title 32 § 14701 to § 14716
- Truth in lending -- 15 United States Code § 1638
- Unfair Trade Practices Act -- Maine Revised Statutes Annotated Title 5 § 205-A to § 214
- Warranty (UCC) -- Maine Revised Statutes Title 11 § 2-314, § 2-315, § 2-714, § 2-715 and § 2-608
Return to Penalties for Illegal Contracts in Maine.
The contracts linked below conform with current Maine and federal court decisions.
The contracts linked below comply with the following Maine and federal court decisions:
- Attorney fees -- Foremost Ins. Co. v. Levesque, 2007 ME 96
- Choice of law -- Schroeder v. Rynel, Ltd., 1998 ME 259
- Choice of law -- Tondreau v. Sherwin Williams Co., 1993 Me. Super. LEXIS 21
- Consequential damages -- Nickerson v. Rowe, 1994 Me. LEXIS 186
- Contractor claims for delay -- Melka Marine Inc. v United States, 187 F.3d 1370, 1999
- Indemnity -- McGraw v. S.D. Warren Co., 1995 Me. LEXIS 73
- Liquidated damages -- Raisin Memorial Trust v. Casey, 2008 Me. LEXIS 63
- Misrepresentations -- Rand v. Bath Iron Works Corp., 2003 ME 122
- Omission in the plans -- Associated Builders, Inc. v. Oczkowski, 2002 Me. LEXIS 146
- Prompt Pay Act -- Cellar Dwellers, Inc. v. D'Alessio, 2010 ME LEXIS 32
- Shortened limitations -- L & A United Grocers, Inc. v. Safeguard Ins. Co., 1983 Me. LEXIS 685
- Statute of limitations -- Dugan v. Martel, 1991 Me. LEXIS 84
- Undisclosed agent -- Treadwell v. J.D. Construction Co., 2007 Me. LEXIS 151
- Warranty (non-residential) -- Sheridan Corp. v. Darling, 1992 Me. Super. LEXIS 228
- Warranty (residential) -- Wimmer v. Down East Properties, Inc., 1979 Me. LEXIS 735
Return to Penalties for Illegal Contracts in Maine.
Return to construction contract laws in Maine.
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