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.