Penalties for using an illegal construction contract in Montana:
- Failure to make statutory disclosures forfeits the benefits offered by Montana's Right to Repair Act.
- Any contract term which does not comply with Montana's Prompt Payment Act is void and unenforceable.
- Omitting the notice required by Montana Code Section 28-2-2115 voids any payment schedule which deviates from the statutory plan.
- Any contract clause which attempts to alter Montana's statute of limitations is void under Montana Code Section 28-2-708.
- Any choice of law or choice of venue which does not comply with Montana Code Section 28-2-2116 is void and unenforceable.
- Any clause in a contract which requires waiver of lien rights is void and unenforceable under Montana Code Section 28-2-723.
- Any contract provision on liquidated damages which does not comply with Montana Code Section 28-2-721 is void.
- Failure to make federal truth in lending disclosures requires restitution of the overcharge and makes the creditor liable for the debtor's attorney fees.
- Failure to include the disclosures required by 12 Code of Federal Regulations Section 226.15 extends the right of rescission to three years (rather than three days).
- Omitting insulation disclosures required by 16 Code of Federal Regulations Section 460 can result in an $11,000 fine.
The contracts linked below will help Montana contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Montana and federal court decisions.
The contracts linked below comply with the following Montana and federal laws:
- Arbitration -- Montana Code Section 27-5-323
- Attorney fees -- Montana Code Section 28-3-704
- Choice of law -- Montana Code Section 28-2-2116
- Damages for breach of contract -- Montana Code Sections 27-1-311 and 30-2-71
- Excavation -- Montana Code Section 69-4-502
- Indemnity -- Montana Code Section 28-2-2111
- Insulation disclosure -- 16 Code of Federal Regulations Section 460
- Interest rate – Montana Code Sections 31-1-107, 27-1-213 and 31-1-106
- Liquidated damages -- Montana Code Sections 28-2-721 and 30-2-719
- Montana's Prompt Payment Act -- Montana Code Sections 28-2-2101 to 28-2-2117
- No lien contracts -- Montana Code Section 28-2-723
- Pay only when paid -- Montana Code Section 28-2-2102
- Retainage -- Montana Code Sections 28-2-2110 and 18-1-301
- Right of rescission -- 12 Code of Federal Regulations Section 226.15
- Right to Repair Act -- Montana Code Sections 70-19-426 to 70-19-428
- Right to suspend or terminate performance -- Montana Code Sections 28-2-2116 and 28-2-2117
- Safety -- Montana Code Sections 50-71-201 and 50-77-101
- Statute of limitations -- Montana Code Sections 27-2-202, 28-2-708, 27-2-204 and 27-2-208
- Time for completion -- Montana Code Section 28-1-1301
- Truth in lending -- 15 United States Code Section 1638
- Workers' Compensation -- Montana Code Sections 39-71-411 and 39-71-405
Return to Penalties for Illegal Contracts in Montana.
The contracts linked below conform with current Montana and federal court decisions.
The contracts linked below comply with the following Montana and federal court decisions:
- Acceptance of the work -- Haines Pipeline Construction v. Montana Power Co., 251 Mont. 422, 1991
- Contractor claims for delay -- Melka Marine Inc. v. United States, 187 F.3d 1370, 1999
- Differing site conditions -- Sandkay Construction Co. v. State of Montana 145 Mont. 180, 1965
- Safety -- Beckman v. Butte-Silver Bow County, 299 Mont. 389, 2000
- Statute of limitations -- Kitchen Krafters v. Eastside Bank, 242 Mont. 155, 1990
- Warranty -- Samuelson v. A.A. Quality Construction, 230 Mont. 220, 1987
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