Business, Law and Contract Management
Licensing and contracts
Louisiana requires contractors to be licensed through the State Licensing Board for Contractors, with separate commercial, residential and specialty classifications, and each business must have a qualifying party. Working outside your classification or without a license can bar you from collecting payment and from enforcing a lien, so verify current thresholds and classification rules directly with the Board rather than relying on memory.
A written contract should identify the scope, price and payment schedule, exclusions, schedule, change-order procedure, warranty, dispute resolution and insurance requirements. Verbal changes are the single most common source of lost profit: no written, signed change order, no payment.
Liens and payments. Louisiana lien law is statutory and deadline-driven. On private work, a statement of claim must be filed within strict periods measured from the filing of a notice of termination or substantial completion; on public work, claim against the bond instead, because public property cannot be liened. Protect yourself with notices at the start, lien waivers from subs and suppliers at each draw, and a 5% or 10% retainage as the contract allows.
Risk transfer. Carry general liability, and require certificates of insurance from every subcontractor naming you as additional insured. Workers' compensation is mandatory for covered employees. Bonds - bid, performance, payment - protect the owner, not you; read them before signing.
Traps. Assuming a subcontractor's insurance protects you, ignoring lien deadlines, misclassifying employees as independent contractors, and accepting a scope description as vague as "reroof as needed."
Rule of thumb. Before mobilizing, confirm four things in writing: signed contract, permit, insurance certificates, and payment schedule.