Louisiana Contractor License Bonds

What you need to know about Louisiana Contractor License Bonds

Louisiana Contractor License Bonds

How much does a construction contractor bond cost in Louisiana?

The cost of construction contractor bonds are calculated as a percentage of the required bond amount. In Louisiana, the state requires that certain contractors or subcontractors have a Contractors License Bond. This surety bond is instantly issued for $100 plus shipping cost and fees. Some of the cities, counties, and parishes in the State of Louisiana, such as Ascension Parish, the City of Lake Charles, and Gonzales require their own specific surety bonds.  Fill out our quick and easy bond forms to buy your bonds instantly!

Why are contractor bonds important in Louisiana?

Contractor license surety bonds are required by The State of Louisiana as well as various cities, counties, and parishes.  These surety bonds offer a financial guarantee to the state that the contractor will ensure compliance with building codes and regulations as well as ensure ethical business practices. These bonds are required for various construction trades including but not limited to construction or deconstruction of residential and commercial buildings, HVAC, electrical work, plumbing and other specialities. 

Louisiana contractor license bonds are important because they protect the consumer in the event that the contractor violates building codes or regulations or commits fraud. If the actions of the contractor cause a loss to the consumer, the consumer can file a claim against the bond. If the claim is valid, the surety company will cover the costs to repair damage or complete the work, up to the amount of the surety bond. 

Types of contractor bonds in Louisiana for purchase

City of Lake Charles Performance Bond – Louisiana contractors in the City of Lake Charles, Louisiana, are required to purchase a contractor bond to ensure that they will comply with all provisions of the standard Building, Plumbing, Mechanical, and Electrical Code and as well as all Ordinances of the City of Lake Charles, as adopted in Chapter 6 of the Lake Charles Code of Ordinances. 

Ascension Parish Contractor BondThe Parish of Ascension requires all contractors to guarantee their performance with a Contractor Performance Bond. 

Gonzales Contractor Surety BondThe city of Gonzales requires all contractors in the city to post this bond and by doing so, agree to abide by all laws stated in the city of Gonzales ordinances.

How do I get my general contractor’s license in Louisiana?

In order to conduct business as a general contractor in the state of Louisiana, you will need a Louisiana General Contractor License. This can be a commercial license, residential license, or a home improvement registration. 

  • A commercial Louisiana Contractor License will allow you to bid on and complete projects that are worth $50,000 or more. There are two exceptions to this license requirement; First, any contractor performing hazardous waste work projects valued at $1 or more must be licensed. Second, subs or specialty contractors performing mechanical, plumbing, or electrical work will only need a license on projects over $10,000.
  • A residential Louisiana General Contractor License is required for all residential projects and home improvements exceeding $75,000. 
  • A home improvement registration is required for projects that cost less than $75,000 but more than $7,500. An exception to this registration is for work on swimming pools. Those improvements are not covered by this registration but instead would need to be covered by a specialty trade license. 

To pursue a general contractor license, you will first need to make sure that your business is registered with the Louisiana Secretary of State

Next, you will fill out the Louisiana Contractor License Application

You will need: 

  1. Your business registration information
  2. Financial statements
  3. Insurance documents and certification
  4. Application fees ($100 per classification) and exams fees ($120 per exam). 

Finally, you will have to pass the Louisiana Contractor License exam which assesses your knowledge of the Louisiana State Building Code. More information on the exam classifications and requirements can be found here.