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Penalties for using an illegal construction contract in South Carolina:
- Using a name on a contract other than the exact name of the licensed contractor forfeits the right to collect for work completed. South Carolina Code Annotated § 40-11-370
- Failure to include the notice required by South Carolina Code Annotated § 15-48-10(a) may void any agreement to arbitrate.
- On a commercial job, payment terms which do not comply with South Carolina Code Annotated § 29-6-10 to § 29-6-60 can result in a 1% per month interest penalty plus attorney fees (§ 27-1-15).
- South Carolina Code Annotated § 29-6-230 makes unenforceable any clause in a contract which would relieve a contractor from paying subcontractors if the contractor is not paid.
- Any contract clause which would waive the right to file a mechanic's lien is void under South Carolina Code Annotated § 29-7-20(2).
- South Carolina Code Annotated § 32-2-10 prohibits enforcing an agreement which would indemnify an owner or contractor against their own sole negligence.
- Any attempt to shorten the statute of limitations is void under South Carolina Code Annotated § 15-3-140.
- 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 South Carolina contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current South Carolina and federal court decisions.
The contracts linked below comply with the following South Carolina and federal laws:
- Arbitration -- South Carolina Code Annotated § 15-48-10
- Attorney fees -- South Carolina Code Annotated § 27-1-15
- Award of interest -- South Carolina Code Annotated § 27-1-15
- Commercial Opportunity to Cure -- South Carolina Code Annotated § 40-11-500 to § 40-11-570
- Contracting without a license -- South Carolina Code Annotated § 40-11-200
- Excavation -- South Carolina Code Annotated § 58-35-80
- Indemnity -- South Carolina Code Annotated § 32-2-10
- Insulation disclosure -- 16 Code of Federal Regulation § 460
- Interest rate (private jobs) -- South Carolina Code Annotated § 34-31-20
- Interest rate (public works) -- South Carolina Code Annotated § 29-6-50
- Liens -- South Carolina Code Annotated § 32-2-10 and § 29-7-20
- Name on the contract -- South Carolina Code Annotated § 40-11-370
- Pay if paid -- South Carolina Code Annotated § 29-6-230
- Prompt Payment Act -- South Carolina Code Annotated § 29-6-10 to § 29-6-60
- Residential Opportunity to Cure -- South Carolina Code Annotated § 40-59-810 to § 40-59-860
- Retainage -- South Carolina Code Annotated § 11-35-3030
- Statute of Limitations -- South Carolina Code Annotated § 15-3-530 and § 15-3-140
- Statute of Repose -- South Carolina Code Annotated § 15-3-630 and § 15-3-640
- Truth in lending -- 15 United States Code § 1638
Return to Penalties for Illegal Contracts in South Carolina.
The contracts linked below conform with current South Carolina and federal court decisions.
The contracts linked below comply with the following South Carolina and federal court decisions:
- Choice of law -- Thornton v. Cessna Aircraft Co., 703 F. Supp. 1228, 1988
- Claims for delay -- Williams Electric Co. v. Metric Constructors, 325 S.C. 129, 1997
- Consequential damages -- Stern & Stern Assocs. v. Timmons, 310 S.C. 250, 1992
- Contractor claims for delay -- Melka Marine Inc. v United States, 187 F.3d 1370, 1999
- Disclaimer of liability -- Robert E. Lee & Co. v. Commission of Public Works, 248 S.C. 84, 1966
- Disclaimer of warranty -- Kirkman v. Parex, Inc., 369 S.C. 477, 2006
- Disclosure of concealed conditions -- Lawson v. Citizens & Southern Nat'l Bank, 259 S.C. 477, 1972
- Duration of warranty -- Fields v. J. Haynes Waters Builders, Inc., 376 S.C. 545, 2008
- Enforcement of arbitration -- Osteen v. T.E. Cuttino Construction Co., 315 S.C. 422, 1993
- Enforcement of law -- Zabinski v. Bright Acres Assocs., 346 S.C. 580, 2001
- Implied warranty -- Smith v. Breedlove, 377 S.C. 415, 2008
- Liquidated damages -- Lewis v. Premium Inv. Corp., 351 S.C. 167, 2002
- Omission in the plans -- Tommy L. Griffin Plumbing & Heating Co. v. Jordon, Jones & Goulding, 320 S.C. 49, 1995
- Oral change orders -- Koontz v. Thomas, 333 S.C. 702, 1999
- Public policy -- Stonhard, Inc. v. Carolina Flooring Specialists, Inc., 366 S.C. 156, 2005
- Right to collect -- Columbia Pools, Inc. v. Moon, 284 S.C. 145, 1985
- Rights of third parties -- Sloan Construction Co. v. Southco Grassing, Inc., 377 S.C. 108, 2008
- Statute of Limitations -- Dean v. Ruscon Corp., 321 S.C. 360, 1996
Return to Penalties for Illegal Contracts in South Carolina.
Return to construction contract laws in South Carolina.
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