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