A contractor is required to comply with all applicable building codes, building permit regulations, and zoning laws when he or she engages in a construction project. If the contractor fails to comply with the building codes or the zoning laws, the contractor's building permit or business license could be revoked. In addition, criminal or quasi-criminal proceedings could be instituted against the contractor, an action for an injunction could be filed against the contractor, or an owner's building or existing structures could be demolished.

Building codes generally set forth the design and the construction requirements for a project. Their purpose is to protect the health and safety of the public. Zoning laws generally control the use of land. Their purpose is to protect the environment, the aesthetic value of property, and the historic preservation of property. Building codes are usually enacted by local governmental entities. Zoning laws may be enacted by state law or by local ordinances.

When a contractor is issued a building permit by a local governmental authority, the contractor is required to build his or her construction project in accordance with the local building code and the local zoning ordinances. If the contractor fails to build his or her project in accordance with the building code or the zoning ordinances, the permit may be revoked. Some building codes also provide that the contractor's business license may be revoked. However, most building codes require a willful or a deliberate violation by the contractor prior to the revocation of the contractor's business license. The revocation of the contractor's business license is a quasi-criminal proceeding. Although the contractor may be subject to criminal penalties, such as a jail term, a fine, or both, most building codes penalize the contractor by administrative fines and stop work orders. Injunctions may be used to prevent the contractor from building without a permit, from building in violation of a permit, or from violating zoning laws.

A contractor's building or existing structure may be subject to removal or demolition if the contractor's violation of a building code causes the building or the existing structure to be dangerous, to be a public nuisance, or to violate applicable zoning laws. The removal or the demolition of the building or the existing structure is normally accomplished through a mandatory injunction. The mandatory injunction also affects the owner of the building. The owner may pursue a civil action against the contractor for money damages.

A local governmental entity is entitled to enforce its building code and its zoning ordinances. If a contractor fails to abide by the building code and the zoning ordinances, the contractor may be subject to a revocation of his or her building permit or business license, to criminal and quasi-criminal penalties, to actions for injunctive relief, or to actions for money damages.

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