As we originally discussed in our May 2013 ROC Compliance Update
, if you omit from a contract with an owner just one of the nine "minimum elements of a contract" listed below and set forth in A.R.S. § 32-1158
, you are in violation of Arizona's contracting statutes. Those minimum elements are not mere technicalities; the ROC has made it clear that a contractor's license can and will be disciplined if any of the nine elements are missing from a contract.
Although a failure to comply with the minimum-elements statute does not automatically trigger a specific sanction, the consequences can be serious. At an April 1, 2014, meeting of Arizona construction lawyers, an ROC representative reported that, in a couple of recent cases, contractor's licenses were temporarily suspended for failure to include required contractual provisions.
THE NINE ELEMENTS
The conclusion is simple. To avoid running afoul of the ROC, make sure that your contracts include the following:
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