In general, contractors for commercial construction projects in Louisiana will hire subcontractors to perform various tasks. This ensures that these tasks are completed by those with specialized training and knowledge. However, it is also important that contractors have the requisite licenses under Louisiana construction law before work on the project begins.
If a commercial project is worth $50,000 or higher, including the costs of labor and materials, then the general contractor is obligated to hire subcontractors with the appropriate license. In addition, if the total costs for plumbing, electrical or HVAC projects is $10,000 or greater, a contractor’s license is necessary. Finally, a contractor’s license is needed for projects worth $1 or more involving asbestos, lead paint removal, hazardous waste or underground storage tanks.
To obtain a license, the contractor must submit an application, along with any requested supporting documents. The contractor also must submit a financial statement affidavit that is current within a year of applying for the license, proving that the contractor has a net worth of at least $10,000. The contractor must pass an exam and any requisite courses. Finally, the contractor must be approved by the Louisiana State Licensing Board for Contractors.
This is only a very basic overview of licensing requirements for contractors in Louisiana. General contractors and subcontractors who do not have the necessary licenses can find themselves in legal hot water, particularly if defects are discovered. Therefore, it is important that those seeking a contractor’s license understand what is required of them, so they can obtain the license they need to do their job.