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Penalties for using an illegal construction contract in Wisconsin:
- Wisconsin Statutes § 423.203(4) makes omission of the 3-day notice of cancellation a violation of Wisconsin Statutes § 425.304 (1). The penalty is twice the amount of any finance charge up to $1,000 plus actual damages, including any incidental and consequential damages.
- Doing home improvement or repair work without a contract is punishable by a fine of not less than $25 and not more than $5,000 and up to a year in jail (Wisconsin Statutes § 100.26-3). Violation also gives an owner or tenant the right to recover twice the amount of any loss plus reasonable attorney fees (Wisconsin Statutes § 100.20-5)
- Wisconsin Statutes § 779.135(2) voids any clause in a construction contract which would make work in Wisconsin subject to the laws of another state.
- Any attempt to make payment of a subcontractor or supplier contingent on receipt of payment by the owner is void under Wisconsin Statutes § 779.135(c).
- Omission of the lien notice required by Wisconsin Statutes § 779.02 forfeits the prime contractor's lien rights unless the conditions in § 779.02(2)(c) are met.
- Wisconsin Statutes § 779.135(1) voids any clause in a construction contract which requires waiver of lien rights.
- Omitting the notice required by Wisconsin Administrative Code ATCP § 111.03 (basements) gives the owner the right to recover twice the amount of any loss plus attorney fees. Wisconsin Statutes § 100.20.
- 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 Wisconsin contractors avoid these penalties by complying with state and federal law.
The contracts linked below also comply with current Wisconsin and federal court decisions.
The contracts linked below comply with the following Wisconsin and federal laws:
- Attorney fees -- Wisconsin Statutes § 16.528
- Choice of law, venue -- Wisconsin Statutes § 779.135
- Contractor registration -- Wisconsin Statutes § 101.147
- Excavation -- Wisconsin Statutes § 182.0175
- Home Improvement Code -- Wisconsin Administrative Code ATCP § 110.01 to § 110.08
- Insulation disclosure -- 16 Code of Federal Regulation § 460
- Interest rates -- Wisconsin Statutes § 138.04
- Liability limits -- Wisconsin Statutes § 895.447
- Lien notice -- Wisconsin Statutes § 779.02
- No-lien contracts-- Wisconsin Statutes § 779.135
- Pay when paid -- Wisconsin Statutes § 779.135
- Payment on public projects -- Wisconsin Statutes § 16.528
- Right of rescission -- 12 Code of Federal Regulations § 226.15
- Statute of limitations -- Wisconsin Statutes § 893.43
- Statute of repose -- Wisconsin Statutes § 893.89
- Trade practices -- Wisconsin Statutes § 100.20 and § 100.26
- Truth in lending -- 15 United States Code § 1638
- Wisconsin Consumer Act -- Wisconsin Statutes § 423.101 to § 423.302 and § 425.304 to § 425.308
- Wisconsin Right to Cure Act -- Wisconsin Statutes § 101.148 and § 895.07
Return to Penalties for Illegal Contracts in Wisconsin.
The contracts linked below conform with current Wisconsin and federal court decisions.
The contracts linked below comply with the following Wisconsin and federal court decisions:
- Attorney fees -- SCS of Wisconsin v. Milwaukee County, 244 Wis. 2d 286, 2001
- Consequential damages -- Magestro v. North Star Environmental Construction, 2002 WI App 182, 2002
- Contractor claim for delay -- John E. Gregory & Son, Inc. v. A. Guenther & Sons Co., 147 Wis. 2d 298, 1988
- Contractor claims for delay -- Melka Marine Inc. v United States, 187 F.3d 1370, 1999
- Defective work -- Ekstrom v. State, 45 Wis. 2d 218, 1969
- Differing site conditions -- Metropolitan Sewerage Com. v. R. W. Construction, Inc., 72 Wis. 2d 365, 1976
- Disclaimer by owner -- Metropolitan Sewerage Com. v. R. W. Construction, Inc., 72 Wis. 2d 365, 1976
- Indemnity -- Mikula v. Miller Brewing Co., 2005 WI App 92, 2005
- Liquidated damages -- Koenings v. Joseph Schlitz Brewing Co., 126 Wis. 2d 349, 1985
- No-lien contract -- Tri-State Mechanical, Inc. v. Northland College, 273 Wis. 2d 471, 2004.
- Reliance on the plans -- Thomsen-Abbott Constr. Co. v. Wausau, 9 Wis. 2d 225, 1960
- Statute of limitations -- CLL Assoc. Ltd. Partnership v. Arrowhead Pacific Corp., 174 Wis. 2d 604, 1993
- Statute of repose -- State Dep't of Public Welfare v. Le Mere, 19 Wis. 2d 412, 1963
- Third party right -- Schell v. Knickelbein, 77 Wis. 2d 344, 348-49, 1977
- Warranty -- Colton v. Foulkes, 259 Wis. 142, 1951
- Workers' Comp -- Dykstra v. Arthur G. McKee & Co., 100 Wis. 2d 120, 1981
Return to Penalties for Illegal Contracts in Wisconsin.
Return to construction contract laws in Wisconsin.
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