What is the minimum bond amount required for a Louisiana residential building contractor license?
Correct Answer
D) $15,000
Louisiana requires a minimum $15,000 surety bond for residential building contractor licenses under R.S. 37:2150.
Why This Is the Correct Answer
Louisiana Revised Statute 37:2150 et seq. establishes that residential building contractors must obtain and maintain a minimum surety bond of $15,000. This bond protects homeowners against contractor default or failure to complete contracted work, and $15,000 is the statutory floor set by the Louisiana State Licensing Board for Contractors.
Why the Other Options Are Wrong
Option A: $25,000
$25,000 exceeds the Louisiana residential building contractor bond requirement. It is a plausible distractor but not the amount specified in R.S. 37:2150. Candidates may select this if they confuse it with commercial contractor bond amounts or other states' requirements.
Option B: $10,000
$10,000 falls below the Louisiana statutory minimum. While some lower-tier licenses in other states require $10,000 bonds, Louisiana's residential building contractor license requires $15,000.
Option C: $50,000
$50,000 is well above the Louisiana residential building contractor bond requirement. This figure may apply to commercial licenses or other high-value contractor categories but is not the residential minimum.
Memory Technique
Associate Louisiana's residential bond with '$15,000' by remembering: 'Louisiana (LA) = 15.' The state abbreviation LA has 2 letters, and 15 is 1+5 = 6, but more memorably: think of Louisiana as the 'fifteen-hundred dollar handshake state' or simply 'LA = $15K bond.' Pair it against SC Tier III = $20K to keep them distinct.
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?
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A contractor discovers contaminated soil during excavation in Louisiana. Which agency must be notified immediately?
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