Louisiana Contracting Law, Bidding & Unlicensed Practice
Louisiana law makes it unlawful to bid or perform covered work without a license and reinforces the correct dollar thresholds. This chapter covers the bidding prohibition, the penalties, the residential and E/M/P triggers in practice, and the Business and Law requirement.
It is unlawful to bid or perform covered work unlicensed
Under La. R.S. 37:2163, it is unlawful for a person to engage or continue in the business of contracting without an active Louisiana license. La. R.S. 37:2158 makes it a violation to bid or perform work without the required license or the proper classification. A contractor must be licensed before bidding a covered commercial project of $50,000 or more. On a public bid, La. R.S. 37:2165 requires the contractor's license number on the bid envelope. A bid without it is rejected and not read aloud.
Penalties and enforcement
Contracting or bidding without the required license exposes the violator to board fines under La. R.S. 37:2164 and to criminal penalties under La. R.S. 37:2163. An unlicensed contractor is also in a weak position to enforce payment, because it may not file a statement of claim or lien for money owed under the contract (La. R.S. 37:2159). The combination of fines and lost lien rights makes obtaining the correct classification before bidding essential.
Applying the correct thresholds
The dollar triggers matter case by case. New residential construction of $50,000 or more requires a residential license — not $75,000, which is an outdated figure. Commercial work of $50,000 or more requires a commercial license, but the electrical, mechanical, and plumbing classifications are triggered at only $10,000. Home improvement of at least $7,500 but less than $50,000, with no structural work, requires registration. Mold remediation of $7,500 or more requires a license. Choosing a figure from memory without confirming the current statute is a common and costly error.
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State-specific details
State exam facts
- State regulator
- Louisiana State Licensing Board for Contractors (LSLBC)
- Passing score
- 70 or above
- Scored questions
- 50
Does Louisiana require a state contractor license?
Yes. The Louisiana State Licensing Board for Contractors (LSLBC) licenses contractors under La. R.S. 37:2150 et seq. A commercial contractor license is required for commercial work of $50,000 or more; the electrical, mechanical, and plumbing classifications are licensed at $10,000 or more.
When is a Louisiana residential license required?
A residential license is required for new residential construction of $50,000 or more (this is $50,000, not the outdated $75,000 figure). Home improvement on an existing home is a registration for work of at least $7,500 but less than $50,000 with no structural work, and mold remediation is licensed at $7,500 or more.
Is the Business and Law exam mandatory in Louisiana?
Yes. The board requires the qualifying party of a commercial, residential, or mold remediation applicant to complete the Business and Law examination. It is a 50-question test taken online in the LSLBC Contractor Licensing Portal after board approval, and a score of 70 or above passes. The board publishes no time limit.
Sources: https://lslbc.gov
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