Louisiana Construction Bidding Process

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Surety Bond Professionals is a family-owned and operated bonding agency with over 75 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your construction bond needs.

What is the Bid Process in Construction?

The construction bidding process involves five steps: bid solicitation, bid submission, bid selection, contract formation, and project delivery. For a contractor in Louisiana to achieve success in the construction bidding process, you need to plan and improve in each of these areas.

If you’re a new contractor or are looking to secure more bids more often, follow our guide below.

What Should a Construction Bid Include?

Successful construction bids generally contain the total cost of building the structure, including expenses for subcontractors, general contractors’ costs, overhead profit, and scope of work. A bid will also need to contain information such as company details, the date, a clear definition of the work, and a project name. Without all of these elements combined, you may not meet the necessary standards.

How Do You Estimate a Construction Bid?

An accurate estimate is not only vital for winning a bid but it can also determine which Louisiana Construction bonds you may need. A professional estimate will include:

Direct costs: This includes materials, labor, and equipment expenses tied directly to construction activities.
Indirect costs: Consider costs that don’t involve direct construction work, like permits, utilities, security, quality control, administration, and legal fees.
Labor hours: Wages paid to construction teams should be factored in, including potential overtime.
Subcontractor expenses: Don’t forget to calculate costs associated with hiring subcontractors for specialized tasks like plumbing, electrical work, or HVAC installation.

What Are the Five Steps in the Process of Bidding?

Bid Solicitation: This is when the project owner or general contractor invites contractors to submit bids.
Bid Submission: Contractors prepare and submit their bids with all necessary details, such as pricing, scope of work, and deadlines.
Bid Selection: The owner of the project will look over bids, including the contractor’s costs, qualifications, and the scope of work suggested. Based on this information, they will choose a bid they believe is best.
Contract Formation: Once the project owner chooses a bid, they will set up a contract with the winning contractor.
Project Delivery: At this phase, the contractor will begin work on the project and secure any further surety bonds they may need.

What Licenses and Bonds Do You Need for Louisiana Construction Bidding?

Louisiana issues state‑level contractor licenses through the Louisiana State Licensing Board for Contractors (LSLBC). A Commercial license is mandatory for any commercial project valued at $50,000 or more, while a Residential Building license is required when the cost of a residential undertaking exceeds $75,000. Specialty contractors—such as those working in roofing, framing, or swimming pools—must also be licensed when the specialty work on a residence exceeds $7,500. Trades like electrical, mechanical, or plumbing need a license when the cost of labor and materials is more than $10,000. 

Highway and bridge work let by the Louisiana Department of Transportation and Development (LADOTD) is restricted to firms that meet LADOTD’s Section 102 “Prequalification of Bidders” rules. A prospective bidder must hold the appropriate LSLBC license and maintain an approved financial and experience rating on file before the Department will issue proposal documents or accept a bid.

Before doing any business with state agencies, contractors must obtain a Louisiana Revenue Account Number (sometimes called a “central registration”) from the Louisiana Department of Revenue and, if organized outside the state, qualify to do business with the Secretary of State. 

Under the Louisiana Public Bid Law, every sealed bid for public work must be accompanied by a certified check, cashier’s check, or bid bond equal to up to 5% of the bid price as evidence of good faith. The security is forfeited if the low bidder fails to execute the contract.

Once awarded a public contract in Louisiana, the successful bidder must furnish performance and payment bonds in accordance with the Louisiana Public Works Act. For contracts exceeding $25,000, the minimum bond amount is 50% of the contract price. Many public owners—including LADOTD—routinely require the full 100% coverage that mirrors federal practice.

It’s imperative to work with a professional surety bond agency, like Surety Bond Professionals, that knows how to secure bonds successfully at the best price so you can submit a competitive bid.

Common Mistakes Made While Bidding

Even a well-prepared contractor can be rejected for a bid. Some common reasons this might happen are:

Incomplete documentation, such as proof of bonds and licenses.
Inaccurate cost estimates, where your estimate is much higher or lower than average.
Lack of experience, unproven track record.
Simple mistakes, like not following the guidelines for the bid strictly or missing paperwork.
Ambitious timelines, if your proposed timeline does not align with the average timelines submitted you may face rejection.

State vs. Federal Bids?

Understanding the difference between state and federal bids can help you stay compliant when you submit your bid.

Topic	State	Federal
Procurement Laws and Regulations	State-specific procurement laws and regulations, varying by state.	Must comply with the Federal Acquisition Regulation, which is stricter and more rigorous.
Bonding Requirements	Often need state licensing and bonds like bid bonds and performance bonds.	Also needs bonds but is often required from a federally approved surety company.
Project Scope	Projects can range from small repairs to large public works in a specific area.	Contracts can be large-scale, spanning multiple states.
Set-Aside Programs	Some states have set-aside programs for small businesses, minority-owned, or veteran-owned businesses, but this varies.	The federal government has many set-aside programs for small businesses, veteran-owned, women-owned, and disadvantaged businesses through programs like 8(a) or HUBZone.
Competition	Often limited to nearby areas, reducing competition.	Open to contractors nationwide, increasing competition and opportunities.

Unique Aspects of the Louisiana Construction Bidding Process

State‑level credentials and business registration. All commercial, residential, and most specialty contractors must hold a statewide license or registration issued by the Louisiana State Licensing Board for Contractors (LSLBC). A commercial license is required for projects of $50,000 (labor + materials) or more. The threshold for a residential building license is also $50,000, and a home improvement registration is required for residential renovations between $7,500 and $50,000. Before bidding, each entity must also qualify with the Louisiana Secretary of State and open a sales/use‑tax account with the Louisiana Department of Revenue (LaTAP/GeauxBIZ) if it sells taxable goods or services. Highway and bridge bidders must register online with the Louisiana DOTD and hold an active Certificate of Qualification; unregistered firms cannot receive an “Authorization to Bid.”
Building codes and plan review. Louisiana enforces the Louisiana State 
Uniform Construction Code, which adopts the 2021 IBC, IRC, IEBC, IMC, IPC, IFGC, and the 2020 NEC statewide. The 2021 IECC (and IRC Chapter 11) became the mandatory energy‑conservation code on July 1, 2023. Local parishes and municipalities issue permits but may add wind, flood‑resilience, or coastal provisions. With limited exceptions for one‑ and two‑family dwellings, plans and specifications for all buildings must be approved by the Louisiana Office of State Fire Marshal before any local permit is released.
Environmental and water‑resource permits. Contractors disturbing 1 to 5 acres of land are automatically covered under LDEQ’s Small Construction General Permit. Sites of 5 or more acres require filing a Notice of Intent and coverage under the Large Construction General Permit before ground‑
disturbance. Projects inside Louisiana’s Coastal Zone that dredge, fill, bulkhead, or otherwise affect coastal waters require a Coastal Use Permit from the Department of Natural Resources—Office of Coastal Management. Work in wetlands, navigable waters, or floodways may also require approvals from the U.S. Army Corps of Engineers.
Insurance requirements. The Louisiana Workers’ Compensation Act obligates every employer with even a single employee to secure and maintain workers’ compensation coverage, with no minimum‑hour exemption. LSLBC rules further require applicants for residential construction, home‑improvement, and mold‑remediation licenses or registrations to submit proof of commercial general liability insurance of at least $100,000 per occurrence and to keep that coverage in force. While the state does not mandate general liability for all commercial contractors, most public owners, lenders, and local building departments make comparable limits a condition of bid prequalification or permit issuance.
Public works bidding and prequalification. Louisiana’s Public Bid Law requires competitive sealed bidding and newspaper/e‑journal advertisement for any state or local public works contract with an estimated value exceeding $250,000. Electronic bidding is mandatory for DOTD lettings and is widely used by other state agencies via LaPAC. Many parishes now mirror those electronic procedures. DOTD construction bidders must hold an active Certificate of Qualification and be listed on the prospective‑bidder roster no later than the deadline stated in each “Notice to Contractors.”
Bid security, performance, and payment bonds. Public entities must require each sealed bid to be accompanied by a bid bond, cashier’s check, or certified check not exceeding 5% of the bid price as evidence of good faith. For any public works contract over $25,000, the Louisiana Public Works Act obligates the successful contractor to furnish performance and payment bonds in a penal sum of at least 50% of the contract price; many owners—including LaDOTD—specify 100% coverage in their bid documents. All statutory bonds must be executed with a solvent surety authorized to do business in Louisiana and, for contracts greater than $25,000, must be recorded in the parish mortgage records.

Louisiana Bid Network

Contractors and suppliers seeking public sector work in Louisiana monitor the Louisiana Procurement and Contract Network (LaPAC)—the state’s central e‑procurement site—along with LaGov Vendor Self‑Service (VSS), which handles vendor enrollment and e‑mail bid notifications. LaPAC consolidates open and archived Invitations for Bid, Requests for Proposals, Requests for Qualifications, Requests for Information, addenda, award notices, and bid tabulations from state agencies, higher‑education systems, and many parish or municipal purchasing offices into one searchable interface, streamlining vendor interactions across government levels.

Every solicitation posted on LaPAC must follow either the Louisiana Public Bid Law for public works contracts or the Louisiana Procurement Code for goods and services. Public works jobs valued above $250,000 must be advertised once a week for three consecutive weeks in a local newspaper, with the first notice appearing at least 25 days before bid opening. RFPs for professional or complex services must be published in the state’s official journal and posted on LaPAC at least 30 days before the proposal due date. These statutes set the minimum advertising periods, competitive bidding procedures, and documentation standards that ensure open, fair, and competitive procurement.

By registering (or linking an existing record) in LaGov VSS, keeping commodity codes current, and uploading required compliance documents, firms gain full visibility into statewide contracting opportunities, receive electronic addenda, and remain in good standing with Louisiana’s procurement regulations. LaPAC and LaGov are limited to government‑to‑business and business‑to‑business transactions; they do not support consumer sales.

Succeed in the Louisiana Construction Bidding Process

To succeed in the Louisiana construction bidding process, you need accurate estimates and documentation as well as a solid grasp of the requirements and nuances of state vs federal bids. However, one of the most important components of your bid is securing the right surety bonds, such as bid bonds, performance bonds, and payment bonds.

When you choose a reliable surety bond agency, you can feel confident that your bond will meet all legal and regulatory requirements. At Surety Bond Professionals, we know the challenges you may face and are here to support you with all your bond needs. Contact us today for a quote.