In Brief: Construction Regulation and Compliance in USA (Louisiana)

Luke LaRocca, Benjamin R. Grau, H. Bruce Shreves, Douglass F. Wynne and Denise C. Puente | Simon Peragine Smith & Redfearn

Regulation and compliance

Licensing procedures

Must foreign designers and contractors be licensed locally to work and, if so, what are the consequences of working without a license?

Foreign architects, interior designers, engineers, and contractors must be licenced locally to work in Louisiana. Each profession has specific licensing requirements that must be met to legally practice in the state.

General licensing requirements for architects, interior designers, engineers, and contractors

Architects

Under Louisiana Revised Statutes sections 37:146.1 and 37:145, anyone practicing architecture in Louisiana must be licenced by the Louisiana State Board of Architectural Examiners. Foreign architects can obtain licensure through the National Council of Architectural Registration Boards (NCARB) certification or by meeting equivalent qualifications. The Board evaluates foreign licences based on educational and professional standards that are equivalent to Louisiana’s requirements. Licensing rules can be found at https://lsbae.com/consumer-info/laws-rules/.

Interior designers

Foreign interior designers are required to be registered, meet educational and experience requirements equivalent to those in Louisiana to receive a License of registration under Louisiana Revised Statutes sections 37:3176 and 37:3177. The Louisiana Board of Examiners of Interior Designers assesses whether the foreign licence or certification is on par with local standards. Licensing requirements can be found at https://lsbid.org/home/resources-for-designers/licensing-requirements/.

Engineers

The Louisiana Professional Engineering and Land Surveying Board (LAPELS) grants licensure to foreign engineers through reciprocity if the applicant holds a licence from a state or country with similar educational and professional qualifications that of Louisiana. As per Louisiana Revised Statutes section 37:693, engineers licenced in other jurisdictions can be licenced by endorsement if their qualifications meet or exceed those required in the state. Additionally, foreign licences are considered valid for endorsement as long as they adhere to the standards set by the Board. Licensing Rules can be found at https://www.lapels.com/LawsRules.html

Contractors

According to Louisiana Revised Statutes section 37:2156.1, the Louisiana State Licensing Board for Contractors may grant a licence to a foreign contractor without requiring them to take the trade examination if they are licenced in a state or jurisdiction that has a reciprocal agreement with Louisiana. The reciprocal agreements typically apply to contractors from states with similar licensing requirements and standards. However, foreign contractors must still meet Louisiana’s business and financial qualification standards.

Consequences of working without a licence in Louisiana

Architects

As per Louisiana Revised Statutes section 37:152.B, any person who practices architecture without a licence can be fined up to $1,500 and face public reprimand. The penalty is same for a company practicing without a licence under section 37:154.

Interior designers

Under Louisiana Revised Statutes section 37:3186, the unauthorised practice of interior design may lead to cease-and-desist orders, fines up to $5,000, and possible civil penalties.

Engineers

Per Louisiana Revised Statutes section 37:700, practicing engineering without a licence is a misdemeanour offense, punishable by fines up to $5,000 and/or imprisonment for up to three months. The Louisiana Professional Engineering and Land Surveying Board may also pursue civil injunctions.

Contractors

Per Louisiana Revised Statutes section 37:2613, contractors who operate without a licence can face fines up to $5,000 or imprisoned, with or without hard labour, for not less than six months nor more than five years, or both. Furthermore, contracting without a license generally leads to the contract being declare null and void as against public policy. In such a situation, the unlicensed contactor can be precluded from recovering under the contract or limited to recovery in quantum meruit.

Bribery

If a contractor has illegally obtained the award of a contract, for example, by bribery, will the contract be enforceable? Are bribe-givers and bribe-takers prosecuted and, if so, what are the penalties they face? Are facilitation payments allowable under local law?

In Louisiana, if a contractor obtains a contract through bribery, the contract would likely be considered void and unenforceable because it is based on illegal activity. Contracts founded on illegal actions, such as bribery, are not recognised by the law, as they violate public policy.

Enforceability of contracts obtained by bribery:

  • Void and Unenforceable: A contract procured through bribery would generally be deemed unenforceable. Louisiana courts, like those in other states, would not uphold a contract tainted by illegal acts such as bribery because it undermines the integrity of public and private contracting.

Criminal liability for bribery in Louisiana:

  • Both bribe-givers (those offering bribes) and bribe-takers (those accepting bribes) can be prosecuted under Louisiana law.

Louisiana bribery statutes:

  • Bribery of public officials: Louisiana Revised Statutes section 14:118 makes it illegal to give, offer, or promise anything of value to a public official with the intent to influence them in their official duties.
  • Private bribery: Louisiana also has provisions under Louisiana Revised Statutes section 14:73 that address bribery in the context of business or commercial dealings.

Penalties for bribery:

  • For public bribery, penalties include imprisonment for up to ten years and/or fines up to $2,000.
  • For private bribery, penalties can include imprisonment for up to six months and/or fines of up to $500.

Facilitation payments:

  • Facilitation payments (small payments made to expedite routine governmental actions) are generally not considered legal under Louisiana law. Bribery laws in Louisiana make no distinction between facilitation payments and other forms of bribery. Any payment intended to improperly influence a public official is prohibited.
  • Facilitation payments, even when seen as minor, can still lead to serious criminal charges if they violate Louisiana’s bribery statutes.

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net.

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