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Penalties for using an illegal construction contract in Rhode Island:
- Omission of either the Notice to Buyer or the Notice of Right to Cancel required by Rhode Island General Laws § 6-28-4(a) and (c) gives the property owner the right to cancel the contract at any time (even years after completion) and demand a full refund. Failure to make that refund within 20 days makes the contractor liable for twice the refund amount. Omission of either notice is also is also a misdemeanor punishable by a fine of up to $1,000 or imprisonment for up to one year. Rhode Island General Laws § 11-1-2.
- Omission of either the Notice of Possible Mechanic's Lien or summary of Title 5, Chapter 65 of Rhode Island General Laws makes the contractor eligible for a fine of up to $5,000 for a first offense or up to $10,000 for a second or later offense. Rhode Island General Laws § 5-65-10-c-1 and 2. In lieu of a fine, the hearing officer can order the contractor to attend continuing education courses. Rhode Island General Laws § 5-65-10-d.
- Rhode Island General Laws § 6-34.1-1 voids any clause in a construction contract which would apply the law of another state to work done in Rhode Island.
- Rhode Island General Laws § 6-34-1 voids any clause in a construction contract which would indemnify someone their own negligence.
- Rhode Island General Laws § 34-28-1 voids any contract clause which would bar the enforcement of lien rights.
- 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 Rhode Island contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Rhode Island and federal court decisions.
The contracts linked below comply with the following Rhode Island and federal laws:
- Choice of law -- Rhode Island General Laws § 6-34.1-1
- Door to door sales act -- Rhode Island General Laws § 6-28-1 to § 6-28-8
- Excavation -- Rhode Island General Laws § 39-1.2-5
- Indemnity -- Rhode Island General Laws § 6-34-1
- Insulation disclosure -- 16 Code of Federal Regulation § 460
- Insurance -- Rhode Island General Laws § 5-65-7
- Interest, accrual -- Rhode Island General Laws § 9-21-10
- Interest, rates -- Rhode Island General Laws § 42-11.1-6
- Residential warranty –Code of Rhode Island Rules § 01-030-001, Divisions 2, 3, 5 and 6
- Right of rescission -- 12 Code of Federal Regulations § 226.15
- Rules for contractors -- Rhode Island General Laws § 5-65-1 to 5, 11, 12, 12.1, 18 and 24
- Statute of limitations -- Rhode Island General Laws § 9-1-13 and § 9-1-29
- Time for payment -- Rhode Island General Laws § 42-11.1-3
- Truth in lending -- 15 United States Code § 1638
- Waiver of lien -- Rhode Island General Laws § 34-28-1
Return to Penalties for Illegal Contracts in Rhode Island.
The contracts linked below conform with current Rhode Island and federal court decisions.
The contracts linked below comply with the following Rhode Island and federal court decisions:
- Attorney fees -- Capital Properties v. City of Providence, 2004 R.I. LEXIS 26, 2004
- Concealed conditions -- Fondedile, S.A. v. C.E. Maguire, Inc., 1992 R.I. LEXIS 103, 1992
- Contractor claim for delay -- Psaty & Fuhrman, Inc. v. Housing Authority, 76 R.I. 87, 1949
- Contractor claims for delay -- Melka Marine Inc. v United States, 187 F.3d 1370, 1999
- Defect in the plans -- Soave v. National Velour Corporation, 2004 R.I. LEXIS 189, 2004
- Defective work -- Patry v. Berick, 50 R.I. 345, 1929
- Due diligence -- Botts v. Lakeside Swimming Pool & Supply Co., 1984 R.I. Super. LEXIS 17, 1984
- Implied warranty -- Nichols v. R.R. Beaufort & Associates, 1999 R.I. LEXIS 63, 1999
- Indemnity -- A & B Construction v. Atlas Roofing & Skylight Co., 867 F. Supp. 100, 1994
- Liability limit -- Star-Shadow Productions, Inc. v. Super 8 Sync Sound System, 1999 R.I. LEXIS 149, 1999
- Liquidated damages -- R. I. Home Improvement, Inc. v. Daigle, 2009 R.I. Super. LEXIS 76, 2009
- Payment for extra work -- Menard & Co. Masonry v. Marshall Building Systems, 1988 R.I. LEXIS 45, 1988
- Private statute of limitations -- Donahue v. Hartford Fire Ins. Co., 110 R.I. 603, 1972
- Statute of limitations -- Martin v. Howard, 2001 R.I. LEXIS 229, 2001
- The cost of delay -- Clark-Fitzpatrick, Inc./Franki Foundation Co. v. Gill, 1994 R.I. LEXIS 302, 1994
- Warranty -- Ruginis v. R.I. Contractors' Registration Board and Carl Benevides, 2000 R.I. Super. Lexis 4 (R.I. Super. Ct.) 2000
- Workers' compensation -- A.F. Lusi Construction, Inc. v. Peerless Ins. Co., 2004 R.I. LEXIS 81, 2004
Return to Penalties for Illegal Contracts in Rhode Island.
Return to construction contract laws in Rhode Island.
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