Louisiana Contractor License Exam — All Questions

Under La. R.S. 37:2158, when may a person submit a bid on Louisiana work that requires a license?

• a.Only after the final inspection has been passed and the owner has accepted the work
• b.Only when the person already holds the proper license and classification✓
• c.Only after the contract is signed
• d.At any time, because a license is needed only to build and never to submit a bid

La. R.S. 37:2158 makes it a violation to bid or perform work without the required license or the proper classification. The contractor must be licensed before bidding. On a public bid, the license number must appear on the bid envelope (La. R.S. 37:2165).La. R.S. 37:2158

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.No residential work is ever licensed in Louisiana
• b.A residential license is required, because new residential construction of $50,000 or more triggers licensing and $75,000 is outdated✓
• c.No license is needed, because the residential trigger is $75,000 and a $60,000 home falls below it, exactly as the study guide says it does
• d.Only a home-improvement registration is needed

New residential construction of $50,000 or more requires a residential license; the $75,000 figure is outdated.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)

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

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

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

• a.Only a written warning letter from the board, with no fine for a first or any later offense
• b.Fines and other penalties under the statute, plus a weak position to enforce payment✓
• c.A guaranteed award of the contract, since the low bidder must be accepted regardless of licensure
• d.No penalty of any kind

Bidding or contracting work that requires a license without one violates La. R.S. 37:2158 and 37:2163. It exposes the violator to board fines under La. R.S. 37:2164 and criminal penalties under La. R.S. 37:2163. The unlicensed contractor is also in a weak position to enforce payment, because it may not file a claim or lien for money owed (La. R.S. 37:2159). Getting the correct classification before bidding avoids both risks.La. R.S. 37:2163; La. R.S. 37:2164

A contractor performs an $8,000 kitchen remodel with no structural work on an existing Louisiana home. Which credential does this residential improvement work implicate?

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

Home improvement of at least $7,500 but less than $50,000, with no structural work, requires registration with the LSLBC. An $8,000 non-structural remodel of an existing home falls in that range, so the home-improvement registration applies.La. R.S. 37:2150.1 (home improvement)

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.Only mold remediation requires a license
• b.The project exceeds the $50,000 commercial threshold, so bidding without the proper license violates the law✓
• c.The licensing threshold is $75,000 per trade, so the job is exempt once it is divided among three subcontractors
• d.There is no legal problem, because commercial work in Louisiana is unlicensed unless public money pays for it

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. 37:2158.La. R.S. 37:2150.1 (commercial threshold)

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

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

La. R.S. 37:2165 requires the contractor's license number on the bid envelope, tying the bidding process to proper licensure. A bid without the license number on the envelope is rejected and not read aloud.La. R.S. 37:2165

A contractor licensed in another state applies for a Louisiana license by reciprocity. What does La. R.S. 37:2153 say about the business law requirement?

• a.It is waived automatically whenever the trade exam is waived
• b.It cannot be waived, although the trade exam may be✓
• c.It is replaced by the other state's law exam
• d.It applies only to Building Construction work

The board may waive the trade portion of the examination for an applicant licensed in a comparable classification in another state. The business law requirement cannot be waived (La. R.S. 37:2153(F)(5)), so the qualifying party still completes the Louisiana Business and Law exam.La. R.S. 37:2153(F)(5)