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September 2025  |  Issue 5

New Louisiana Permit and License Requirements

With the recent legislative changes in Louisiana (Acts 239 and 422), every residential or commercial roofing and reroofing job must have a valid permit in place. Contractors are prohibited from beginning work without first securing the permit, providing false information about the project, or skipping mandatory inspections.

Starting January 1, 2026, any contractor undertaking residential roofing projects valued at $7,500 or more will be required to hold either a residential roofing license or a residential construction license. New applicants will need to meet examination requirements, unless they already hold certain related classifications that qualify them for exemption.

 Takeaway: Louisiana now requires permits for all roofing projects and, starting Jan. 1, 2026, a license for residential jobs $7,500+. If you work across state lines, always double-check each state’s licensure rules before bidding or starting a project.

Case Law Update

Florida Appellate Court Clarifies Construction Lien Procedure

In Custom Homes By Triumph, LLC v. Sverdlow, No. 2D24-148, slip op. (Fla. 2D DCA, Aug. 29, 2025), a Florida appeals court has ruled that the 20-day deadline for responding to a show-cause summons under Section 713.21(4), Florida Statutes only begins when the summons is actually issued and served, not merely when a complaint or counterclaim is filed without such a summons.

Importantly, if a lienor or contractor has already filed a lien foreclosure action before the show-cause summons is served, this action is sufficient to preserve the lien. As a result, the lien cannot be canceled later for failure to respond to a summons that was never properly served.

The court’s decision underscores how critical it is to follow the precise statutory process under Florida lien law.

 Takeaway: In Florida, the 20-day deadline to respond to a show-cause summons for lien preservation starts only upon its proper issuance and service, not upon the mere filing of a counterclaim. And if you’ve already filed a lien foreclosure before a summons, that protects your lien. Always monitor for and respond to formal summonses to safeguard your lien rights.

Contractors across the U.S. are facing increased payment risks as owners tighten budgets and lenders delay disbursements. Subcontractors, in particular, are often caught in the middle because of “pay-if-paid” and “pay-when-paid” clauses in their contracts. These provisions shift the financial burden downstream and can leave a contractor footing the bill if the owner defaults.

Key Points for Contractors Everywhere:

• Pay-if-Paid (Condition Precedent): These clauses make payment to a subcontractor strictly conditional on the contractor first receiving payment from the owner. If the owner never pays, the subcontractor may have no right to payment at all. Courts in some states enforce these provisions, while others find them against public policy.

• Pay-when-Paid (Timing Mechanism): These clauses delay payment but do not eliminate the obligation. Courts generally interpret them as requiring payment within a “reasonable time,” regardless of whether the contractor has been paid.

• Lien Rights Still Matter: Even in jurisdictions that allow pay-if-paid, subcontractors may preserve lien or bond rights and are often the only leverage available if payment is withheld.

• State-by-State Differences: Enforcement varies significantly. For example, states like New York and California tend to invalidate strict pay-if-paid clauses, while others, like Florida and Texas, enforce them if clearly worded.

• Practical Advice: Always review payment language closely, negotiate for fairer terms, and preserve lien/bond rights. Contractors should also ensure their upstream payment provisions align with downstream obligations to avoid being stuck in the middle.

 Takeaway: Payment risk allocation is one of the most important issues contractors face nationwide. Understanding how pay-if-paid and pay-when-paid clauses operate in your state and preserving lien and bond rights can make the difference between getting paid and carrying the loss.

Upcoming Speaking Engagements & Events

• FEI Group 2025 Annual Conference, September 25-27, 2025, San Diego, CA (Speaking)

• Western Roofing Expo, September 28-30, 2025, Paris Resort, Las Vegas, NV (Speaking)