LA General Contractor key terms

A lettered category (such as A, B, or C) issued by the state licensing board that defines which types of construction work a contractor may legally bid on and perform.

A classification permitting construction of structures that require more than two unrelated building trades, or work that includes framing or carpentry, with specialty work subcontracted unless the contractor also holds that specialty license.

A classification covering a single trade or a limited scope of work, such as electrical, plumbing, painting, or landscaping, that does not require the full range of building trades.

The maximum dollar value of a single contract a licensee may undertake, set by the licensing board and tied to the classification held, bonding capacity, and demonstrated financial resources.

The person who passes the licensing exams and whose experience and qualifications support the license; that individual must be an owner, officer, or responsible managing employee of the firm.

A person who is regularly employed by a licensed firm and actively supervises construction work, allowing the firm to keep its license when the qualifying owner leaves the business.

The severing of a qualifying individual's relationship with a licensed firm, which triggers a notice obligation and can cause the license to become inactive if no replacement is reported.

The periodic process of paying fees and confirming continuing requirements so a contractor's license stays active; lapsed renewal usually requires reinstatement fees and may require reexamination.

A disciplinary action that temporarily bars a licensee from contracting, often imposed for violations such as abandoning a job, failing to pay judgments, or working without proper licensing.

A surety bond filed with the licensing board that provides a fund for consumers harmed by a licensee's violation of licensing law, separate from any performance or payment bond.

A surety guarantee that pays the owner if the contractor fails to complete the work according to the contract terms, typically issued for the full contract amount.

A surety guarantee protecting the owner from liens and claims by subcontractors, laborers, and suppliers who are not paid for work or materials on the project.

A surety instrument submitted with a bid that promises the bidder will enter the contract and furnish required bonds, forfeiting a percentage if the bidder defaults.

A statutory claim against real property filed by a contractor, subcontractor, or supplier who has not been paid for labor, services, or materials incorporated into an improvement.

A written notice sent by a subcontractor or supplier early in the project to the owner and lender, preserving the sender's right to record a mechanic's lien later.

A demand served on a construction lender or owner to withhold unexpended funds owed to the contractor until a claimant's unpaid bill is resolved.

A document signed by a claimant waiving lien rights, either unconditionally or conditioned on actual receipt of payment, commonly required before progress payments are disbursed.

A partial payment made during construction based on the percentage of work completed and materials stored, usually supported by a signed application for payment.

A percentage of each progress payment withheld by the owner until final completion, providing leverage to ensure the contractor finishes punch-list items and pays its obligations.

A line-item breakdown allocating the contract sum among work items, used to evaluate progress payment applications and to track earned value against completed work.

A written amendment signed by owner and contractor that modifies the scope, price, or schedule of the contract, and which must be documented to support payment and avoid disputes.

An unformalized change arising when the owner's actions or instructions alter the work beyond contract requirements, allowing the contractor to seek an equitable adjustment without a signed order.

A formal written query from the contractor to the design professional seeking clarification of ambiguous or conflicting contract documents, with responses becoming part of the project record.

A physical site condition, such as unexpected rock or contaminated soil, that differs materially from what the contract documents indicated and may justify a time or cost adjustment.

The stage at which the work is sufficiently complete for its intended use, triggering owner occupancy, warranty start, and release of most retainage.

The point at which all work, including punch-list corrections, is finished and accepted, allowing final payment and release of remaining retainage.

A documented list of minor incomplete or defective items identified at substantial completion that the contractor must correct before final acceptance and final payment.

A business that contracts with the prime contractor to perform a defined portion of the work, typically holding its own specialty license and bound by the prime contract's terms.

A rule requiring bidders on public works to name subcontractors in their bids for listed trades, restricting post-bid substitution and preventing bid shopping.

The practice of disclosing one subcontractor's price to competitors to obtain a lower quote, often restricted by subcontractor listing laws on public projects.

Construction funded by a government entity, subject to prevailing wage, bonding, bidding, and subcontractor listing requirements that differ from private work.

The minimum hourly rate, including fringe benefits, that must be paid to workers on public works projects, determined by the labor agency for each trade and locality.

A periodic payroll report submitted on public works projects that lists each worker's classification, hours, and wages, certified as accurate and used to enforce prevailing wage compliance.

A structured training program combining supervised on-the-job work with related instruction, registered with a government agency and often required at specified ratios on public works.

A worker who has completed apprenticeship training or otherwise demonstrated full competence in a trade and may supervise apprentices and perform the full range of trade work.

Current assets minus current liabilities, a measure of short-term financial capacity that licensing boards review when setting bid limits or evaluating financial fitness.

A report of a contractor's assets, liabilities, and net worth, often prepared or reviewed by an accountant, submitted to the licensing board to support license qualification or increased bid limits.

An administrative enforcement action in which the licensing board penalizes a licensee for violations such as unlicensed contracting, without necessarily revoking the license.

Performing work that requires a contractor's license without holding one, which can bar recovery of compensation in court and expose the offender to citations and criminal penalties.