Examination Practice Questions And
Correct Answers (Verif
1. In Louisiana, a commercial contractor's license is issued by the Louisiana State
Licensing Board for Contractors (LSLBC). Which statement correctly describes the
monetary threshold and project classification that trigger mandatory licensing for a
commercial project?
A. Any project exceeding $50,000 in total cost, regardless of whether it is residential or
commercial, requires a license.
B. Only projects exceeding $75,000 in total cost require a license, and the threshold
applies uniformly to all classifications.
C. A license is required for commercial projects when the total project cost is $50,000 or
more, and the license classification must match the type of work performed.
D. Licensing is required only for projects exceeding $100,000, and the classification is
determined solely by the contractor's annual revenue.
Answer: C. A license is required for commercial projects when the total project cost is
$50,000 or more, and the license classification must match the type of work
performed.
Rationale: Under Louisiana law, a contractor's license is required for commercial projects
with a total cost of $50,000 or more, and the license classification (e.g., building
construction, highway, municipal) must correspond to the work being performed. Options A
and B misstate the threshold or incorrectly apply it uniformly, and D wrongly ties
classification to revenue rather than project type.
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,2. A contractor is preparing a bid for a public works project in Louisiana. Which
factor is most critical in determining whether the contractor must pay prevailing
wages under Louisiana's prevailing wage law?
A. The project is funded entirely by private donations.
B. The project is a state-funded public works project exceeding $1,000,000.
C. The project involves only maintenance work on an existing public building.
D. The project is located in a parish with a population under 50,000.
Answer: B. The project is a state-funded public works project exceeding $1,000,000.
Rationale: Louisiana's prevailing wage law generally applies to state-funded public works
projects with a contract value exceeding $1,000,000. Private donations, small parishes,
and routine maintenance do not automatically trigger prevailing wage requirements.
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,3. During a commercial construction project, a dispute arises over a change order.
Under Louisiana Civil Code article 2765, which condition must be met for a
contractor to recover additional compensation for extra work not originally specified
in the contract?
A. The extra work must be documented in a written change order signed by both parties
before work begins.
B. The owner must have given verbal approval, and the contractor must prove the work
was necessary.
C. The contractor must show that the extra work was unforeseeable and that the owner
was unjustly enriched.
D. The contractor must prove the owner authorized the change in writing or that the
change was required by law.
Answer: D. The contractor must prove the owner authorized the change in writing or
that the change was required by law.
Rationale: Louisiana Civil Code article 2765 requires that extra work be authorized in
writing by the owner or that it be necessary due to legal requirements. Verbal approval or
unjust enrichment alone is insufficient, and written change orders are the preferred but not
exclusive method.
4. A commercial contractor is reviewing the Louisiana lien law requirements. Which
statement accurately reflects the deadline for filing a statement of claim or privilege
(mechanic's lien) on a commercial project?
A. Within 30 days after the last day of work performed by the claimant.
B. Within 60 days after the substantial completion of the entire project.
C. Within 60 days after the claimant's last day of work or within 60 days after substantial
completion, whichever occurs first.
D. Within 90 days after the owner records the notice of contract in the parish where the
project is located.
Answer: C. Within 60 days after the claimant's last day of work or within 60 days
after substantial completion, whichever occurs first.
Rationale: Under Louisiana Revised Statutes 9:4822, a claimant must file a statement of
claim or privilege within 60 days after the claimant's last day of work or within 60 days
after substantial completion of the project, whichever occurs first. Options A, B, and D
misstate the deadline or the triggering event.
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