Calculate the Louisiana contractor license renewal fee for a Class A contractor with gross receipts of $2.5 million in the previous year:
Correct Answer
B) $750
Louisiana contractor license renewal fees are based on gross receipts. For receipts between $1M-$5M, the fee is $750.
Why This Is the Correct Answer
Louisiana's LSLBC fee schedule ties renewal fees to gross receipts tiers. For a Class A contractor with gross receipts between $1 million and $5 million, the applicable renewal fee is $750. The $2.5 million figure falls squarely within this bracket.
Why the Other Options Are Wrong
Option A: $1,000
$1,000 corresponds to a higher gross receipts tier (above $5 million). A contractor at $2.5 million has not yet crossed into that fee band.
Option C: $300
$300 is associated with lower gross receipts tiers (typically under $500,000 or similar lower brackets). A $2.5 million contractor has surpassed that level.
Option D: $500
$500 may correspond to an intermediate tier (e.g., $500,000–$1 million range). At $2.5 million the contractor is in the next bracket up, making $750 the correct fee.
Memory Technique
Think of the fee tiers as a staircase: low receipts = low step ($300), mid receipts ($1M–$5M) = middle step ($750), high receipts (>$5M) = top step ($1,000). $2.5M sits on the middle step.
More Louisiana Questions
A contractor in Louisiana completes $85,000 worth of work on a residential project. The owner pays $70,000 but disputes the remaining $15,000. If the contractor files a lien claim, what percentage penalty can be awarded if the contractor prevails in court?
A contractor discovers contaminated soil during excavation that requires special disposal. The disposal cost is $12,000, and transportation is $3,500. If this was not foreseeable from the contract documents, who typically bears this cost under Louisiana law?
A construction worker is injured on a Louisiana job site. The contractor's workers' compensation carrier has 15 days to investigate. If they don't respond within this period, what happens to the claim?
Under Louisiana law, what is the minimum amount of workers' compensation insurance coverage required for construction contractors?
A contractor's employee is injured on a job site in Louisiana. The contractor has workers' compensation insurance. Which statement is correct regarding the employee's rights?
Under Louisiana Civil Code, if a building contract does not specify a completion date, when is the work considered to be due?
Under Louisiana building codes, what is the minimum width required for emergency egress windows in bedrooms?
A Class B contractor in Louisiana wants to bid on a project worth $175,000. What action must they take?
A contractor's worker is injured and files for workers' compensation. The injury occurred due to the worker's intoxication. Under Louisiana law, what is the likely outcome?
A general contractor discovers contaminated soil during excavation for a commercial project in Louisiana. Which state agency must be notified?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Contract Administration
60 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A contractor is working on a school renovation project in Louisiana. The project involves asbestos abatement. Which certification is required?
Next Question
A property owner in Louisiana wants to prevent liens from attaching to their property during construction. What document should they record?