Important Licensing & Compliance Updates for Louisiana Contractors

By:
RIA Blog Editor
on Wed, 07/02/2025
Important Licensing & Compliance Updates for Louisiana Contractors

Significant changes are now in effect that impact contractor licensing, compliance, and qualifications in the state of Louisiana. These legislative updates were enacted to enhance oversight, strengthen consumer protection, and promote higher standards across the construction and restoration industries. If you perform residential or commercial work in Louisiana, these updates may affect your business.  Click here to view the bill.

Key Changes You Need to Know

1. New Licensing Thresholds

  • Commercial Contractors must now obtain a license for any project valued at $50,000 or more.

  • Residential Contractors must be licensed for projects $7,500 or more.

  • This applies to home improvement projects, mold remediation, roofing, and solar installations.

2. Mandatory Written Contracts

  • All home improvement and residential construction contracts must now be documented in writing. Written contracts are required to include clear terms, scope, and expectations to ensure transparency between the contractor and the property owner.

3. Revised Board Composition & Streamlined Licensing for Out-of-State Contractors

  • The State Licensing Board for Contractors has been restructured to include broader industry representation.

  • The Board now has the authority to streamline licensing procedures for out-of-state contractors, improving reciprocity and access to Louisiana’s markets.

4. Updated Financial & Insurance Requirements

  • Contractors are required to maintain valid general liability and workers' compensation insurance.

  • Financial statements must be submitted to verify adequate net worth to qualify for licensure.

5. Training & Certification Requirements for Specialized Services

  • Mold remediation contractors must meet state-specific training and certification standards.

  • Similar requirements apply to contractors performing residential roofing, plumbing, or solar energy equipment installation.

Why This Matters

These updates affect how restoration companies bid on work, manage risk, and maintain compliance in the state. If your company is based in Louisiana—or performs restoration work there—you may need to update your licensing status, review your contracts, and evaluate your insurance and training policies.

Next Steps for RIA Members

  • Review your current license classifications to ensure they meet the new monetary thresholds.

  • Verify that all contracts are in written form and compliant with updated state guidelines.

  • Ensure all personnel involved in regulated activities hold proper certifications.

  • Stay connected with RIA as we continue to monitor the implementation of these changes and provide additional guidance.