September 09, 2010
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Penalties for using an illegal construction contract in North Carolina:
  • Any contract clause which makes payment by an owner to a contractor condition precedent to payment of a subcontractor is unenforceable.
  • Any contract clause which would delay payment to a subcontractor more than seven days after the contractor has been paid is unenforceable.
  • Any contract clause which would indemnify someone against their own negligence is void.
  • Failure to make federal truth-in-lending disclosures requires restitution of the overcharge.
  • 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 North Carolina contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current North Carolina and federal court decisions.

North Carolina Construction Contracts Available Now
Title Bias Contract Type Page Length
NC Commercial Construction I Light bias in favor of the contractor. Prime 37
NC Commercial Construction II Light bias in favor of the owner. Prime 16
NC Commercial Repair Bias does not favor either party. Prime 21
NC Commercial Subcontract I Light bias in favor of the subcontractor. Subcontract 33
NC Commercial Subcontract II Light bias in favor of the contractor. Subcontract 17
NC Custom Home I Light bias in favor of the contractor. Prime 20
NC Custom Home II Light bias in favor of the owner. Prime 27
NC Home Improvement I Moderate bias in favor of the contractor. Prime 27
NC Home Improvement II Moderately favors the owner. Prime 29
NC Home Repair I Heavy bias in favor of the contractor. Prime 11
NC Home Repair II Heavy bias in favor of the owner. Prime 19
NC Pool Neutral. Prime 20
NC Public Works Subcontract Moderate bias in favor of the contractor. Subcontract 37
NC Residential Subcontract I Light bias in favor of the subcontractor. Subcontract 16
NC Residential Subcontract II Light bias in favor of the contractor. Subcontract 21
NC Tenant Improvement Neutral. Prime 16
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