When you work on a construction project it is important to know who needs to be licensed and who does not. Improper licensing can be an expensive mistake that is easily avoided. Here at Smiley Law Group we want to save you the headaches by laying out the Louisiana licensing laws for you here.
The Louisiana State Board of Contractors regulates all licensing for contractors in the state. Not everyone on a construction project needs nor are they needed on every project. Licenses are required in the following situations:
- Commercial projects when the party’s work exceeds $50,000;
- New residential construction when the party’s work exceeds $75,000;
- Residential “improvement” construction when the party’s work is between $7,500 and $75,000;
- Electrical contracting projects when the party’s work exceeds $10,000.
Obtaining a license in Louisiana starts with requesting an application pack from the Louisiana State Board of Contractors. You will be sent an application in the mail within two weeks of making the request, and you must apply using the packet mailed to you (the sample forms on the Internet cannot be used).
You can fill out the application, most of the questions are straight forward, but there are two issues to be aware of.
You will need to select a “classification” for the type of work you will be doing that needs licensure. The list contains major classifications with sub-classifications under each one. It can be confusing for contractors that may specialize prompting them to only apply for a sub-classification license. But most construction projects wind up requiring overlap in tasks, and choosing licensure for a subclass could preclude you from doing other tasks that come up. It’s better to just choose licensure for the major classification, which covers all the subclasses/ You will be tested on “business law” and the classifications selected.
You will need to provide the board with financial data prepared and certified by an independent accountant. The Board wants to see that your company has at least $10,000 in assets.
Failing to secure these licenses at the start of the project can wind up costing a ton of money. Unlicensed contractors may find their rights to recover payments severely limited since contracts signed by unlicensed contractors are typically unenforceable. Smiley Law Group’s attorneys are intimately familiar with the licensing requirements in Louisiana, and can walk you through the process. Our firm also represents contractors before the Louisiana State Board of Contractors for disciplinary and critical hearings when a contractor’s license is at stake.
If your license is being threatened by action of a licensing board, don’t fight them alone. Contact the Smiley Law Group for a free consultation today.