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. 37:2160, it is unlawful for a person to engage or continue in the business of contracting, or to submit a bid, on covered work without holding the proper Louisiana license. A contractor must be licensed before bidding a covered commercial project of $50,000 or more, and public bid documents require the license number and classification on the bid envelope and forms. Bidding without the required license can disqualify the bid.
Penalties and enforcement
Contracting or bidding without the required license exposes the violator to penalties set by the LSLBC and the statute, including fines. Because the licensing law is tied to the validity of the bid and the contract, an unlicensed contractor is also in a weak position to enforce payment. The combination of fines and unenforceable 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 New residential construction of $50,000 or more requires a residential license — not $75,000, which is an outdated figure.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 subclassifications are triggered at only $10,000. Home improvement and mold remediation require registration at $7,500 or more. Choosing a figure from memory without confirming the current statute is a common and costly error.