Need a Home Services / Remodeling / Interior Renovation Contract in Louisiana? AroundWire Can Help

In Louisiana, contracts for home services, remodeling, and interior renovation are typically required to be in writing for projects exceeding $1,500, as mandated by the Louisiana Home Improvement Consumer Protection Act (La. R.S. 37:2175.1 et seq.). Licensed home improvement contractors must be used for residential projects between $7,500 and $75,000; projects exceeding $75,000 generally require a residential building contractor’s license. Contracts must clearly specify the scope of work, total cost, payment schedule, timeline, and contractor license information. State law requires contractors to provide proof of general liability insurance and, if they have employees, workers’ compensation coverage. Risk factors include potential for non-payment, delays due to weather or permitting, and exposure to consumer protection claims; contracts often address these through defined change order procedures, retainage clauses, and provisions for unforeseen conditions. Payment terms typically involve an initial deposit (with state law discouraging large upfront payments), progress payments tied to milestones, and final payment upon completion and inspection. Dispute resolution is commonly addressed through mediation or arbitration clauses, reflecting Louisiana’s preference for alternative dispute resolution before litigation. Additionally, contractors must comply with local permitting and inspection requirements, and contracts should reference applicable building codes. Failure to meet statutory requirements can lead to unenforceable contracts or liability for damages, making compliance with state and local laws essential.