Notice to Contractors and Homeowners undertaking home improvements….

Did you know that members of the Louisiana state legislature recently passed a new bill requiring home improvement contractors to comply with certain notice provisions to homeowners? If you hold a license as a residential building contractor or if you are registered as a home improvement contractor, then this is for you!

The Louisiana Legislature just amended and reenacted R.S. 37:2175.1(A)(1) and 2175.3(A)(9) and enacted a new statute, R.S. 37:2171.3. As a result of these amendments, all contractors must provide, in writing to the party with whom he has contracted to perform contracting services, his name, contracting license number, classification, and current insurance certificates evidencing the amount of liability insurance maintained and proof of workers' compensation coverage, regardless of whether such information is requested by the contracting party for whom the work is to be performed.

What this means for you!
So for contractors who are contracting with homeowners those contractors will be required to supply the homeowners with the following:

  • Name (business name)
  • Contracting license number
  • Contracting classification i.e. residential construction, home improvement, etc.
  • Current certificate of insurance showing:
    • Amount of Liability insurance and
    • Proof of Workers compensation coverage

Contractors should document the steps taken to comply with these notice requirements. This can include:

  • maintenance of this evidence in the customer/contract file
  • including the required information in the proposal/contract (simple contract clause)
  • updating standard proposal/contract template to reference the required evidence as exhibits and attachments
  • sending customer the evidence via US Certified mail (green card)
  • requiring homeowners to sign an acknowledgment of receipt of the documents i.e. upon execution of the contract

Homeowners who are undertaking home improvements can require contractors to include copies of current certificates of insurance as part of their contract.

Local permitting authorities will cease to issue permits until evidence that these new laws have been complied with is submitted to them.

Help is here!
If you are unsure of the respective requirements imposed by the Louisiana Private Works Act, then contact me for a free consultation through the end of 2017.