September 09, 2010
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Penalties for using an illegal construction contract in Vermont:
  • Title 13 Vermont Statutes Annotated § 2029 makes it a misdemeanor for a home improvement contractor to (1) promise performance without the intention to perform, or (2) misrepresent a material fact about the terms, contract or property, or (3) use any unfair or deceptive act or practice to induce someone enter into or modify a home improvement contract.
  • No agreement to arbitrate disputes is enforceable unless prominent and acknowledged in the agreement. Title 12 Vermont Statutes Annotated § 5652.
  • Any contract clause which would waive lien rights before work is done is unenforceable under Title 9 Vermont Statutes Annotated § 1921(f).
  • Any contract clause which would shorten the running of Vermont's statute of limitations is void under Title 12 Vermont Statutes Annotated § 465.
  • Payment terms that do not comply with Vermont's Prompt Pay Act, Title 9 Vermont Statutes Annotated § 4001 to § 4009, are unenforceable and permit the contractor or subcontractor to collect interest at 12% plus attorney fees plus 1% of the amount wrongfully withheld.
  • Failure to disclose the date when payment is expected from an owner obligates the contractor to pay subcontractors in compliance with Title 9 Vermont Statutes Annotated § 4003(b).
  • Omission of the notice required by Title 9 Vermont Statutes Annotated § 2454(b)(2) is an "unfair act in commerce" and gives an owner the right to recover all money paid plus attorney's fees and exemplary damages up to three times amount paid.
  • 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 § 226.15 extends the right of rescission to three years (rather than three days).
  • Omitting insulation disclosures required by 16 Code of Federal Regulation § 460 can result in an $11,000 fine.
The contracts linked below will help Vermont contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Vermont and federal court decisions.

Vermont Construction Contracts Available Now
Title Bias Contract Type Page Length
VT Commercial Construction I Light bias in favor of the contractor. Prime 37
VT Commercial Construction II Light bias in favor of the owner. Prime 16
VT Commercial Repair Neutral. Prime 21
VT Commercial Subcontract I Light bias in favor of the subcontractor. Subcontract 33
VT Commercial Subcontract II Light bias in favor of the contractor. Subcontract 17
VT Custom Home I Light bias in favor of the contractor. Prime 26
VT Custom Home II Light bias in favor of the owner. Prime 33
VT Home Improvement I Moderate bias in favor of the contractor. Prime 31
VT Home Improvement II Moderately favors the owner. Prime 35
VT Home Repair I Heavy bias in favor of the contractor. Prime 14
VT Home Repair II Heavy bias in favor of the owner. Prime 24
VT Pool Neutral. Prime 24
VT Public Works Subcontract Moderate bias in favor of the contractor. Subcontract 38
VT Residential Subcontract I Light bias in favor of the subcontractor. Subcontract 15
VT Residential Subcontract II Light bias in favor of the contractor. Subcontract 21
VT Tenant Improvement Neutral. Prime 16
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