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Penalties for using an illegal construction contract in Missouri:
- On residential projects, omission of the right to repair notice forfeits protection provided by Missouri Revised Statutes § 436.350 to § 436.365.
- On commercial jobs and larger residential projects, Missouri voids any provision in the contract which does not comply with Revised Statutes § 436.300 to § 436.336. Failure to comply with the Retainage Act can result in an interest penalty of 1-1/2% per month plus attorney fees. Revised Statutes of Missouri § 34.057 imposes similar requirements for public works subcontracts.
- Failure to get a signed consent statement on a residential home improvement job extinguishes the lien rights of subcontractors under Revised Statutes of Missouri § 434.100.
- Failure to deliver the lien law notice jeopardizes lien rights. Fraudulent omission of the lien notice makes a contractor liable for a fine of up to $500 and six months in jail under Revised Statutes of Missouri § 429.012.
- Revised Statutes of Missouri § 434.100 voids any indemnity clause in a construction contract which would require indemnification of someone for their own negligence.
- Omission of the Sales Act notice required by Revised Statutes of Missouri § 407.710 gives a property owner the right to cancel the contract at any time, even years after work is completed.
- 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). 15 U.S.C. § 1635(f) and 12 C.F.R. § 226.23(a)(3).
- 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 Missouri contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Missouri and federal court decisions.
The contracts linked below comply with the following Missouri and federal laws:
- Arbitration notice -- Revised Statutes of Missouri § 435.460
- Claims for delay -- Revised Statutes of Missouri § 34.058
- Consent to lien -- Revised Statutes of Missouri § 434.100
- Excavation -- Revised Statutes of Missouri § 319.025
- Indemnity -- Revised Statutes of Missouri § 434.100
- Interest rates -- Revised Statutes of Missouri § 431.180, § 408.020
- Lien law notice -- Revised Statutes of Missouri § 429.012
- Lien notice violation -- Revised Statutes of Missouri § 558.011(1)
- Missouri Retainage Act -- Revised Statutes of Missouri § 436.300 to § 436.336
- Pay only if paid -- Revised Statutes of Missouri § 431.183
- Retainage – public works -- Revised Statutes of Missouri § 34.057
- Right to Repair Act -- Missouri Revised Statutes § 436.350 to § 436.365
- Statute of limitations -- Revised Statutes of Missouri § 516.120, § 516.100, § 516.097, § 431.030
- Truth in lending -- 15 United States Code § 1638
Return to Penalties for Illegal Contracts in Missouri.
The contracts linked below conform with current Missouri and federal court decisions.
The contracts linked below comply with the following Missouri and federal court decisions:
- Arbitration -- Brookfield R-III School Dist. v. Tognascioli Gross Jarvis Kautz 1993 Mo. App. LEXIS 47, 1993
- Attorney fees -- Gurley v. Montgomery First Nat'l Bank, N.A., 2005 Mo. App. LEXIS 660, 2005
- Choice of law -- Morgan Publishers., Inc. v. Squire Publishers., Inc., 2000 Mo. App. LEXIS 550, 2000.
- Choice of law -- State ex rel. Geil v. Corcoran, 1981 Mo. App. LEXIS 3650, 1981.
- Commercial warranty -- Buss v. Horine, 819 S.W.2d 762
- Contractor claims for delay -- Melka Marine Inc. v United States, 187 F.3d 1370, 1999
- Disclaimer of warranty -- Crawford v. Whittaker Construction, Inc., 1989 Mo. App. LEXIS 639, 1989
- Liability limits -- Roy A. Elam Masonry v. Fru-Con Construction, 1996 Mo. App. LEXIS 481, 1996
- Liquidated damages -- Valentine's, Inc. v. Ngo, 2008 Mo. App. LEXIS 492, 2008
- No damage for delay -- Roy A. Elam Masonry v. Fru-Con Constr. Corp., 1996 Mo. App. LEXIS 481, 1996
- No lien contract -- Landvatter Ready Mix v. Buckey, 1997 Mo. App. LEXIS 2144, 1997
- Pay only if paid -- AEE-EMF v. Passmore, 1995 Mo. App. LEXIS 1014, 1996
- Payment for extra work -- Flooring Systems, Inc. v. Staat Construction, 2003 Mo. App. LEXIS 168, 2003
- Plan defects -- Sanders Co. Plumbing & Heating, Inc. v. City of Independence, 1985 Mo. App. LEXIS 3459, 1985
- Residential warranty -- Smith v. Old Warson Development Co., 1972 Mo. LEXIS 887, 1972
- Residential warranty -- Trien v. Croasdale Construction Co., 1994 Mo. App. LEXIS 356, 1994
- Statute of limitations -- East Hills Condos L.P. v. Tri-Lakes Escrow, Inc., 2009 Mo. App. LEXIS 147, 2009
- Structural warranty -- Hershewe v. Perkins, 2003 Mo. App. LEXIS 495, 2003
- Warranty limits -- San Luis Trails Asso. v. E.M. Harris Building Co 1986 Mo. App. LEXIS 3599, 1986
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Return to construction contract laws in Missouri.
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