8 questions

Louisiana Contracting Law, Bidding & Unlicensed Practice

Under La. R.S. 37:2160, when is it lawful for a person to submit a bid on covered Louisiana work?

  • a.Anytime; a license is only needed to build
  • b.Only after the contract is signed
  • c.Only when the person already holds the proper license and classification
  • d.Only after the final inspection

La. R.S. 37:2160 makes it unlawful to engage in the business of contracting or to submit a bid on covered work without holding the proper license. The contractor must be licensed before bidding; public bids require the license number and classification.La. R.S. 37:2160

Louisiana Contracting Law, Bidding & Unlicensed Practice

A builder plans a new single-family home in Louisiana with a construction cost of $60,000. A study guide says the residential trigger is $75,000. What is correct?

  • a.A residential license is required, because new residential construction of $50,000 or more triggers licensing and $75,000 is outdated
  • b.No license is needed, because the trigger is $75,000
  • c.Only a home-improvement registration is needed
  • d.No residential work is ever licensed in Louisiana

New residential construction of $50,000 or more requires a residential license; the $75,000 figure is outdated. A $60,000 new home exceeds the correct $50,000 trigger, so the residential license is required.La. R.S. 37:2150.1 (residential threshold)

Louisiana Contracting Law, Bidding & Unlicensed Practice

A mechanical contractor takes a Louisiana commercial HVAC job worth $15,000. Does this work require a license?

  • a.No, because it is under $50,000
  • b.Yes, because the E/M/P subclassification threshold is $10,000 and $15,000 exceeds it
  • c.No, mechanical work is never licensed
  • d.Only a home-improvement registration is needed

The electrical, mechanical, and plumbing subclassifications are triggered at $10,000, not $50,000. A $15,000 commercial mechanical job exceeds the E/M/P threshold, so the specialty license is required even though it is under the general commercial $50,000 line.La. R.S. 37:2150.1 (E/M/P)

Louisiana Contracting Law, Bidding & Unlicensed Practice

What exposure does a person who bids or contracts covered Louisiana work without a license face?

  • a.A guaranteed award of the contract
  • b.No penalty of any kind
  • c.Only a thank-you letter from the board
  • d.Fines and other penalties under the statute, plus a weak position to enforce payment

Bidding or contracting covered work without a license violates La. R.S. 37:2160 and exposes the violator to fines and other penalties, and the unlicensed contractor is in a weak position to enforce payment. Getting the correct classification before bidding avoids both risks.La. R.S. 37:2160 (penalties)

Louisiana Contracting Law, Bidding & Unlicensed Practice

A contractor performs an $8,000 kitchen remodel on an existing Louisiana home. Which credential does this residential improvement work implicate?

  • a.A home-improvement registration, because the work is $7,500 or more
  • b.A commercial Building Construction license, because $8,000 is commercial
  • c.No credential, because all residential work is exempt
  • d.A Highway, Street, and Bridge classification

Home improvement of $7,500 or more requires registration with the LSLBC. An $8,000 remodel of an existing home exceeds that floor, so the home-improvement registration path applies rather than a full residential or commercial license.La. R.S. 37:2150.1 (home improvement)

Louisiana Contracting Law, Bidding & Unlicensed Practice

A general contractor bids a private Louisiana office build-out priced at $120,000 without any contractor license. What is the core legal problem?

  • a.There is no problem; commercial work is unlicensed in Louisiana
  • b.The project exceeds the $50,000 commercial threshold, so bidding without the proper license violates the law
  • c.Only mold remediation requires a license
  • d.The threshold is $75,000, so the job is exempt

Commercial work of $50,000 or more requires a commercial license, and it is unlawful to bid such work without it. A $120,000 office build-out far exceeds the threshold, so bidding unlicensed violates La. R.S. 37:2160.La. R.S. 37:2150.1 (commercial threshold)

Louisiana Contracting Law, Bidding & Unlicensed Practice

On a Louisiana public works bid, what license-related information must generally appear on the bid?

  • a.Only the contractor's phone number
  • b.Nothing related to licensing
  • c.The contractor's license number and classification
  • d.The architect's home address

Louisiana public bid procedures require the contractor's license number and classification to appear on the bid, tying the bidding process to proper licensure. A bid lacking the required license information can be disqualified.LSLBC bid requirements

Louisiana Contracting Law, Bidding & Unlicensed Practice

For which type of Louisiana work is the Business and Law examination generally NOT required?

  • a.Building Construction
  • b.Municipal and Public Works Construction
  • c.Electrical, mechanical, and plumbing
  • d.Labor-Only work, which is the principal exception

The Louisiana Business and Law examination is mandatory for the licensed classifications, with Labor-Only work being the principal exception. Building Construction, the public-works classifications, and the E/M/P trades all generally require the Business and Law exam.LSLBC Business and Law requirement

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