Contractors in Louisiana are required to carry general liability insurance. Those insurance requirements, however, likely provide less coverage than you might expect. When a contractor finds themself in a scenario where they need to make a claim, they do so expecting their insurance company to handle the defense and payment of any damages. Unfortunately, in… Continue reading Contractors: Did you receive a Reservation of Rights Letter (ROR)?
In a recent blog, we discussed the Louisiana 5th Circuit’s ruling in Korrapati v. Augustino Brothers Construction, LLC, et al, which held that a construction contract is null and void if the contractor is not properly licensed. In November 2020, the Louisiana 1st Circuit held that an unlicensed contractor may not recover for the costs… Continue reading Legal Update: Unlicensed Contractor Can’t Recover for Sub-Standard Work
Louisiana Law holds that a contract is absolutely null when it violates a rule of public order. In Louisiana certain construction projects require that the contractor be licensed by the State Licensing Board for Contractors. In addition, some projects need to be permitted in order to comply with local ordinances. Pertinent Facts: In the recent… Continue reading Validity of Construction Contracts with Unlicensed Contractors
If you have been to New Orleans in the last few years, you have seen a number of major construction projects. The renovation and addition to the world renowned World War II museum; a number of high end condominium and apartment complexes; and New Orleans’ very first Four Seasons Hotel. Claiming land in New Orleans… Continue reading New Orleans Drive Shack Project Halted and Its Response to Liens
The purpose of a pay-if-paid clause is to shift financial risk down the chain. Pay-If-Paid provisions state that a general contractor does not have to pay her subcontractor unless he is paid by the owner. In Louisiana, Pay-if-Paid clauses are typically enforceable so long as the contract is specific and explicit. Most contractors are familiar… Continue reading “Pay-If-Paid vs. Pay-When-Paid” in LA Construction Cases
Louisiana Homebuyers Summary of the Louisiana New Home Warranty Act In the late 1980’s the Louisiana legislature, in order to promote commerce and to protect Louisiana homebuyers, enacted the Louisiana New Home Warranty Act. The Act serves as a simple, mostly exclusive remedy for homeowners to recover damages from their contractors’ defective work. What Remedies… Continue reading Louisiana Homebuyers Summary of the New Home Warranty Act
In Louisiana, contractors provide certain warranties to their customers regarding the quality of their work. These warranties include the Louisiana New Home Warranty which was enacted relatively recently to protect consumers from contractor errors. Since these guarantee and warranty periods are time sensitive, it is important to know when they begin. Louisiana Construction Warranties Louisiana… Continue reading When Does The Warranty Period Commence in Construction?
In Louisiana, contractors who follow the project’s plans and specifications can avail themselves of an immunity defense from liability for damages arising from the construction. However, several Louisiana courts have held that Contractors cannot blindly rely on the plans and specifications and are further not immune when they fail to follow the plans and specifications.… Continue reading Is the Contractor Liable if Following Plans Leads to Damages?
Contractors, subcontractors and all those involved in the construction industry have heard the term indemnity. It is also important that any construction professional understand what it means and the benefits or drawbacks that come with it. Indemnity clauses, in general, shift responsibility for damages or losses that are incurred in connection with a construction project.… Continue reading What Are Indemnity Agreements in Construction Contracts?
According to the Louisiana State Licensing Board for Contractors, there are approximately 1100 licensed contractors in New Orleans. The State of Louisiana has a vested interest in contractors’ dealings with the public and therefore regulates the profession fairly extensively. While there is extensive laws, rules and regulations regarding contractors, the following list outlines the most… Continue reading Common Issues Faced By Louisiana Contractors
Materialmen’s Privilege Under the Louisiana Public Works Act, the definition of “Claimant” includes any person to whom money is due pursuant to a contract with the owner or a contractor or a subcontractor for…furnishing materials or supplies for the construction, alteration, or repair of any public works. When to File Claim? Any claimant within forty-five… Continue reading Louisiana Suppliers’ Rights Under The Public Works Act
Supplier’s Rights Under the Private Works Act, suppliers are included in the list of persons that have a privilege on an immovable to secure “the price of movables sold to the owner that become component parts of the immovable, or are consumed at the site of the immovable, or are consumed in machinery or equipment… Continue reading Louisiana Suppliers’ Rights Under the Private Works Act