The Contractors Licensing Law and Rules and Regulations sets out specific monetary job limits for which a contractor may be required to obtain a license and general liability and workers compensation insurance. The state of Louisiana recognizes several different types of construction contractors and provides strict guidelines for each.

A commercial contractor is one who performs work on any commercial property. In Louisiana, they are required to obtain a commercial license for projects costing $50,000 or more. This amount includes the cost of all materials and labor. If a commercial job involves the use or handling of hazardous materials, the same license is required for any of those products used costing $1 or more. In addition, a commercial contractor who will perform plumbing, electrical, or mechanical work is required to obtain a license for any job to be performed costing $10,000 or more.

A residential contractor is one who performs work on any residential building. These contractors must obtain a license in the state of Louisiana for any project costing more than $75,000. Further, they are required to provide evidence to the state of adequate workers’ compensation as well as general liability insurance of at least $100,000.

As any type of contractor, a construction law attorney should be considered a great asset to your business. Scheduling a consult with an attorney can ensure that a contractor is in possession of all required licenses and insurance policies prior to bidding on or accepting a job. This can help those in such situations move forward with a solid plan of legal action.