Are you looking to get a Louisiana Contractors License? This post is an outline of the essential facts you would need to know in order to be a licensed contractor in Louisiana.
The State of Louisiana necessitates all contractors to obtain a license for commercial or residential. The contractor license can be obtained from the Louisiana State Licensing Board. The license allows contractors to work on a specific value, where labor and material costs go beyond a certain price. Mold remediation works also require a contractor’s license.
Types of Louisiana Contractor Licenses
A contractor in Louisiana can obtain three licenses, the residential contractor license, commercial contractor license, and the mold remediation license. The State of Louisiana Contractors Licensing Laws states that these licenses are not necessary for all commercial and residential contractors but are necessary for those who are working on projects that are above a specific value.
The Commercial Contractor License
A contractor working on commercial projects at a value equal to or greater than $50,000 is required to get a commercial contractor license. For subcontractors and those who provide specialty trades working on a commercial project valued at $50,000 or more are also required to get a license.
The law states two exemptions to this requirement as outlined below:
● Mechanical, electrical, and plumbing contractors who are working on projects that go beyond $10,000 in labor costs and materials are also required to get a contractor’s license.
● Contractors, subcontractors, or anyone in specialty trade who are working on sensitive and dangerous materials such as hazardous waste, lead-based paint reduction, asbestos, or underground storage tank removals are required to get a license and other important specifications for projects at or exceeding $1.
The Residential Contractor License
Contractors who are working on residential projects with a value of $75,000 or more in labor costs and materials would need to get a residential building contractor’s license. Residential projects include the new construction of a single-family residential unit, duplex, and triplex units.
Specialty tradesmen and subcontractors working on residential projects with a value of $7,500 or more in labor and material costs will also require a contractor’s license. Specialty trade includes framing, foundations, masonry/stucco, pile driving, roofing, and swimming pools.
The Licensing law states that all contractors working on home improvements are likewise required to get a license as a residential contractor.
Mold Remediation License
This is in line with commercial contractors that handle hazardous materials. Licensing law states that all contractors who are directly handling projects involving mold remediation with a value over $1 or more are subject to get a license.
Application Requirements for Louisiana Contractor License
Application specifications are mostly the same for residential and commercial contractors. Outlined below are the requirements similar to both residential and commercial contractors in Louisiana.
● Fill out the Louisiana State Application form for the Original Contractor’s License. Be specific on the type of contractor license you are applying for. Submit proof of the financial statement that shows at least a net worth of $10,000.
● Important Note: The license issuance requirements of the Louisiana licensing law states that those who do not meet the specified net worth amount and who is not able to submit a supporting financial statement can provide the board with what is referred to as surety bond in the same amount specified. This will satisfy the said requirement.
● Contractor licensing applications that show a negative net worth will have to provide the negative net worth amount to complete the surety bond. For instance: If the negative net worth amounts to $4,000 and that the required amount for the bond is $10,000, the actual amount for the bond will be $14,000.
● Complete all appropriate Louisiana contractor license examinations
● Pay all fees relevant to the licensing application
● Get approval from the Licensing Board
● Provide supporting documents to prove general liability insurance in the amount of $100,000 minimum
● Provide documentation to prove coverage of workers’ compensation.
● Residential contractors are required to complete and provide proof of 6 hours (minimum) of continuing education each year in order to be eligible for license renewal.
Licensed contractors in other states could use the Reciprocity and Examination Endorsement Agreement. This permits contractors to gain credits for exams that have already been passed and completed in other states.
Licenses for residential and commercial contractors are initially given with a period good for one year. However, this could be extended for 1 to 3 years as soon as the initial licensing period reached its conclusion.
Application Requirements for Mold Remediation Licensing in Louisiana
Mold remediation licensing in Louisiana have the same requirements as that of the residential and commercial contractors. However, the application requirements go further than what had been specified for both. Mold remediation specialists have to further comply with the following:
● Must go through 24 hours of training for mold assessment and mold remediation and to provide certification for completion.
● Must go through 4 hours of instruction in the subject of Unfair Trade and Consumer Protection Law in Louisiana
● Present supporting documents to prove general liability insurance amounting to $50,000 minimum and documentation to prove coverage of workers’ compensation and should be maintained at all times
When all the requirements are met and submitted (and a surety bond if further required), the licensing board will be sending you a notice in due time informing you about the approval (or rejection) of your application.
Surety Bond Details for Louisiana Contractor Licensing
The Louisiana contractor license bond is only applicable for contractors who are not able to provide a current financial statement that shows a minimum of $10,00 net worth. This is also applicable to contractors who have a negative net worth.
Applicants for a contractor license bond can get a quote and apply it with a surety bond agency. Note that the surety bond is not equivalent to the required total bond amount. For instance, a required contractor license bond of $10,000 may cost 0.75% to 2.5% of the total required bond amount. Thus, getting a contractor license bond will cost you around $100 to $250.
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