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Penalties for using an illegal construction contract in Virginia:
- Failure to disclaim warranties under Virginia Code Annotated Section 55-70.1 can impose a five-year warranty against construction defects.
- Virginia Code Annotated Section 11-4.1 voids any clause in a construction contract which would indemnify someone against their own sole negligence.
- 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 Regulation Section 460 can result in an $11,000 fine.
The contracts linked below will help Virginia contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Virginia and federal court decisions.
The contracts linked below comply with the following Virginia and federal laws:
- Consequential damages -- Virginia Code Annotated Section 8.2-719
- Damages for delay -- Virginia Code Annotated Section 2.2-4335
- Excavation -- Virginia Code Annotated Sections 56-265.14
- Indemnity -- Virginia Code Annotated Section 11-4.1
- Insulation disclosure 16 Code of Federal Regulation section 460
- Interest on unpaid balances -- Virginia Code Annotated Section 2.2-4355
- Interest on unpaid balances -- Virginia Code Annotated Section 6.1-330.54
- Interest on unpaid balances -- Virginia Code Annotated Section 6.1-330.54
- No lien contract -- Virginia Code Annotated Section 43-3C
- Prompt Payment Act -- Virginia Code Annotated Section 2.2-4352
- Prompt Payment Act -- Virginia Code Annotated Section 2.2-4354
- Retainage -- Virginia Code Annotated Section 2.2-4333
- Right of rescission 12 Code of Federal Regulations section 226.15
- Statute of limitations -- Virginia Code Annotated Section 8.01-230
- Statute of limitations -- Virginia Code Annotated Section 8.01-246
- Statute of repose -- Virginia Code Annotated Section 8.01-250
- Truth in lending 15 United States Code section 1638
- Warranty -- Virginia Code Annotated Section 55-70
- Warranty -- Virginia Code Annotated Section 55-70.1E
Return to Penalties for Illegal Contracts in Virginia.
The contracts linked below conform with current Virginia and federal court decisions.
The contracts linked below comply with the following Virginia and federal court decisions:
- Attorney fees -- Ryder v. Petrea, 243 Va. 421 (1992)
- Changes in the work -- Warren v. Goodrich, 133 Va. 366 (1922)
- Choice of law -- Black v. Powers, 48 Va. App. 113 (2006)
- Choice of law -- Hitachi Systems Corporation. v. Webmethods, Inc., 60 Va. Cir. 79, 2002)
- Choice of law -- RMS Technology Inc. v. TDY Industries, 64 Fed. Appx. 853 (2003)
- Choice of venue -- Paul Business Systems, Inc. v. Canon U.S.A., Inc., 240 Va. 337 (1990)
- Claims for Delay -- Blake Construction Co. v. Upper Occoquan Sewage Authority, 266 Va. 564 (2003)
- Claims for delay -- R. G. Pope Construction Co. v. Guard Rail of Roanoke, Inc., 219 Va. 111 (1978)
- Concealed conditions -- Tyger Construction Co. v. Dept. of Highways, 17 Va. App. 166 (1993)
- Cost of delay -- Fairfax County Redevelopment v. Worcester Brothers Co., 257 Va. 382 (1999)
- Differing site conditions -- Brinderson Corp. v. Hampton Roads Sanitation District, 825 F.2d 41, 1987
- Excusable delay -- McDevitt & Street Co. v. Marriott Corp., 713 F. Supp. 906 (1989)
- Extra work -- Ellis & Myers Lumber Co. v. Hubbard, 123 Va. 481 (1918)
- Extra work -- West v. United States Postal Service, 907 F. Supp. 154 (1995)
- Liquidated damages -- Boots, Inc. v. Singh, 274 Va. 513 (2007)
- Liquidated damages -- Gordonsville Energy, L.P. v. Virginia Electric & Power Co., 257 Va. 344 (1999).
- Melka Marine Inc.v United States, 187 F.3d 1370 (1999)
- No lien contract -- VNB Mortgage Corp. v. Lone Star Industries, Inc., 215 Va. 366 (1974)
- Omission in the plans -- Greater Richmond Civic Recreation, Inc. v. A. H. Ewing's Sons, Inc., 200 Va. 593 (1959)
- Pay when paid -- Galloway Corp. v. S.B. Ballard Construction Co., 250 Va. 493 (1995)
- Pay when paid -- Moore Brothers Co. v. Brown & Root, Inc., 207 F.3d 717 (2000)
- Site inspection -- Southgate v. Sanford & Brooks Co., 147 Va. 554 (1927)
- Statute of limitations -- Coker v. State Farm Fire & Casualty Co., 45 Va. Cir. 510 (1998)
- Statute of limitations -- Gilmore v. Fifield, 61 Va. Cir. 481 (2003)
- Warranty -- Mann v. Clowser, 190 Va. 887 (1950).
Return to Penalties for Illegal Contracts in Virginia.
Return to construction contract laws in Virginia.
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