Monday, April 18, 2011

“Properly licensed and qualified contractors…It’s the Law!”

Here's an email bulletin sent to us by the State Licensing Board for Contractors, reminding us to conform with the law.   We'd like to remind ya'll that the law applies to homeowners as well.  You are required by the state and by the city of New Orleans to hire contractors who are licensed and insured, or else be licensed and insured yourself.  It isn't just a matter of hiring people who have passed state tests on their competence in the trades.  If you pick up a day laborer from a parking lot, you are liable for all relevant employment taxes, unemployment insurance, and worker's compensation fees.  

BULLETIN:  11-04
  April 15, 2011


 Requests for Proposals— “RFP’s”

The professionals of the construction industry in Louisiana, architects, contractors, engineers, project owners, and awarding authorities, must remember that “quotes” or “proposals” are subject to the Louisiana Contractor Licensing Laws. According to the definition of a contractor as found in LA RS 37:2150.1(4) (a) a contractor means any person who undertakes to, attempts to or “SUBMITS A PRICE OR BID OR OFFERS TO CONSTRUCT”.  Given that by definition, the law makes no distinction between performing work or merely proposing to perform work, it is the LSLBC Compliance Division policy that we treat both as equal. To submit a proposal for work that requires one to be licensed to actually perform the work, one must also be licensed to submit the proposal. Submitting an “RFP” without possessing a license is a violation of our law and the contractor will be cited for 37:2160 A (1). 

The Licensing Board has been consistent in the handling of any such matters, while they may take in to account the fact that the contractor received no payments when deciding what penalty to impose, the Board has found the violators guilty without distinction. The only exception to this would be if the RFP is submitted out of state, in that case we would not have jurisdiction, but regardless of who is requesting the RFP, contractors must be licensed to legally submit a response to an RFP.

“Properly licensed and qualified contractors…It’s the Law!”

For any questions or further information, please refer to the website at www.lslbc.louisiana.gov or contact our Public Information Officer at 225-765-2301 Ext. 213 or via email at kfitch@lslbc.louisiana.gov.