2006 Construction Related Legislation

By: Scott J. Hedlund

Due to the booming construction activity since Katrina, it came as no surprise, when the Louisiana Legislature introduced numerous pieces of legislation in 2006 regulating the construction industry. The following is a partial list of those that became law:

A Concurrent Resolution was passed declaring the State Uniform Construction Code suspended until July 1, 2007. The Code, a state-wide adoption of the International Building Code, was enacted into law in late 2005 following Hurricane Katrina in an attempt to bring a level of consistency and safety to construction in Louisiana. Originally, the uniform codes were to have gone into effect on January 1, 2007. However, because of a lack of equipment, training and funding for the various parishes and municipalities which would be required to enforce the codes, additional lead time through July of this year has been provided.

Related to that is Act 420 of the Regular Session, which created an exception in the Uniform Construction Code as to the need for an engineer or architect to stamp drawings or plans for one and two family dwellings. According to this exception, no stamp is needed as long as the structures still comply with the standards established in the codes. However, its important to remember that the Uniform Construction Code was established as a minimum standard, so each parish or municipality may have increased the requirements, and should always be referred to during a Project. For example, independent of the State regulation, Orleans Parish adopted its own building requirements. For this reason it is generally recommended to designate an individual within your organization, or outside counsel, who will be responsible for ensuring compliance with all applicable code provisions.

Act 407 of the Regular Session created Revised Statute 38:2318.1 entitled Louisiana "No Bidding of Design Professional Service" policy. This statute makes the selection of design professionals dependent upon "competence and qualifications for a fair and reasonable price." Neither the State nor any of its political subdivisions or agencies may select based on price or price-related information as a factor. It does not affect the ability of the DOTD, the Louisiana Transportation Authority or the Military Authority, pursuant to existing law, from entering certain design-build and public-private partnership contracts. All records of such selections will also be open to the public in accordance with the already established constitutional and legal provisions for public record inspection.

The Louisiana Professional Engineering and Land Surveying Board had the terms of its members modified to expire on March 31 of the year of expiration instead of August 31 through Act 473. The Act also modified the reciprocal licensing requirements to ensure the standards of the foreign authority were not lower than those of Louisiana.

Act 732 amended Revised Statute 9:5607 to include real-estate developers, thus giving them the same 5 year peremptive period applied to engineers, architects and surveyors.

Act 203 allows political subdivisions to develop uniform standards to be used when receiving electronic bids if the Louisiana Advisory Commission on Intergovernmental Relations fails to develop standards by January 30, 2007. If the Louisiana Advisory Commission later develops uniform standards, those would preempt the ones created by the political subdivision. The Act welcomes recommendations from contractors and groups like the Louisiana AGC and ABC in establishing the uniform standards.

Written for The Legal Blueprint, Issue 1.