Penalties for using an illegal construction contract in Connecticut:
- A home improvement contract which does not comply with Connecticut's Home Improvement Act can not be enforced against the property owner. Most violations are class B misdemeanors punishable by a fine of $1,000 or six months in prison or both.
- A home improvement contract which does not comply with Home Solicitation Sales Act qualifies the contractor for a fine of up to $500 or imprisonment for up to 90 days or both.
- Violation of Connecticut's Home Improvement Act or Home Solicitation Sales Act is also a violation of Connecticut's Unfair Trade Practices Act (General Statutes § 42-110a to § 42-110q). A willful violation of CUTPA (such as failure to offer or honor the 3-day notice of cancellation) is punishable by a fine of up to $5,000. In addition, an owner who suffers a loss as a result of any unfair trade practice may bring suit to recover actual damages and punitive damages and may be awarded attorney fees.
- Failure to make the disclosures required by the New Home Construction Act, Connecticut General Statutes § 20-417d, is punishable by a fine of up to $1,500 (§ 20-417f).
- Use of other than "plain language" in a consumer contract makes the contractor liable for damages of up to $100 plus attorney fees up to $100.
- Omission of the contract clause required by Connecticut General Statutes § 42-158j makes a contractor or owner liable for a fine of from $100 to $500 under Connecticut General Statutes § 54-195 and § 53a-43.
- Any attempt to enforce contract terms which do not comply with Connecticut's Prompt Payment Act can result in an award of attorney fees against the enforcing party.
- Contract retainage which does not comply with Connecticut's Prompt Payment Act makes the owner liable for attorney fees and an additional one and one-half per cent of the retained amount for each month or fraction of a month until retainage is paid in full.
- Connecticut General Statutes § 52-572k voids any clause in a construction contract which would require indemnification of someone for their own 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 § 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 Connecticut contractors avoid these penalties by complying with state and federal law
The contracts linked below also comply with current Connecticut and federal court decisions