What’s in a Name?

Actually, a name can make all the difference.  Contractors are licensed in the State of Louisiana in either their personal name or the name of a company.  Before the Louisiana State Licensing Board for Contractors (LSLBC) can issue a license to a company, the company must be registered with the Secretary of State as a legal entity.  Once the license is issued, it can only be used legally by the name as it appears on the actual certificate.  Contractors are required by LSLBC Rules and Regulations, Section 109, to conduct business in their properly licensed name.  This means that bids must be submitted in the name as it appears on the license.  Likewise, contracts must also contain the properly licensed name.  To do otherwise is a violation which subjects the contractor to a fine, suspension or revocation of license.  An awarding authority should reject any bid that is not in the properly licensed name of the contractor even though the contractor may have a proper license with another name on it.

If you are licensed in your personal name, you may submit bids using a DBA (“doing business as”) as long as the properly licensed name is used.  For example, if I am licensed as Bob Smith, I must bid as Bob Smith, but may legally add Bob Smith DBA Smith Construction.  However, to submit a bid as Smith Construction would be a violation.  In this scenario, the contractor risks losing the job and being fined by the Board.

Doing business in your properly licensed name means just that, your bids, contracts, invoices and even your signage should all reflect the name as it appears on your license.

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

For any questions or further information, please visit our website at www.lslbc.louisiaana.gov or contact us by phone a at 225-765-22301 Ext. 2213 or send an email to newslettter@lslbc.llouisiana.goov

BULLETIN: 11-08

August 15, 2011

Trust, but Verify

On his desk in the White House, President Truman had a sign that famously stated, “The Buck Stops Here”! As a state licensed contractor, you should be aware that the law holds you accountable to contract exclusively with properly licensed contractors.  According to La. R.S. 37:2158A(4), the board may revoke, suspend, refuse to renew a license, or issue cease and desist orders to stop work, or debar a person or licensee for “entering into a contract with an unlicensed contractor involving work or activity for the performance of which a license is required…”

This prohibition not only applies to subcontractors that you may hire, but also to contractors that hire you. Even though you may not actually sign a contract, to verbally agree to perform work for an unlicensed contractor for a fee would still be considered a violation. Contractors found in violation of this statute may be subject to a maximum fine of $1,000 plus $500 court costs, as well as possible suspension or revocation of their contractor’s license. The unlicensed contractor is liable to the State Licensing Board for up to 10% of the value of his contract plus court costs, and will, in most likelihood, be removed from the project.

Don’t take a chance on unnecessary delays on your project, or put your license at risk. Take the time to know the status of contractors that you are working with.  Our website provides easy access for current information on all state licensed contractors.

If you still have any questions, contact the Compliance Division at the main office located in Baton Rouge for assistance. Don’t find out the hard way that when it comes to licensing law in Louisiana, “the buck stops with you.”

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

For questions or further information, please visit our website at http://www.lslbc.louisiana.gov/ or contact us by phone at 225-765-2301 Ext. 213 or send an email to newsletter@lslbc.louisiana.gov.

Recently we were honored to complete a commercial/retail construction project for Clarkes Jewelers in Shreveport, LA. This video features their Grand Opening of the new location.

Over the next couple of weeks we will be posting more video and information on the construction, design and green aspects of this collaborative project.