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Louisiana contractor license scam (The state)

Posted on 2/8/22 at 2:31 pm
Posted by ShermanTxTiger
Broussard, La
Member since Oct 2007
11326 posts
Posted on 2/8/22 at 2:31 pm
I am building a new home in Broussard La and want to add a pool. I get a quote from "reasonable contractor". $86,000 for a 16x32 rectangle pool with a spa in the footprint.

I built pools in Texas for myself and friends 15-20 years ago and started pricing equipment, labor and materials. I come to roughly 50K.

Louisiana has a new law that bans DYI swimming pool builds. To get a permit you have to have a licensed pool contractor. But..... you can build your own house. That is ok as long as you don't build more than 1 per year.

This is the craziest crap I have ever heard. Damn...
Posted by CoachChappy
Member since May 2013
34099 posts
Posted on 2/8/22 at 2:39 pm to
Welcome to Louisiana.
Posted by Grassy1
Member since Oct 2009
7330 posts
Posted on 2/8/22 at 2:47 pm to
quote:

To get a permit


I don't know, and never investigated, but I would bet my pool builder skipped this step.

And he was from your neck of the woods.
Posted by Meauxjeaux
102836 posts including my alters
Member since Jun 2005
46007 posts
Posted on 2/8/22 at 2:56 pm to
Now try to go sell flowers.
Posted by Meauxjeaux
102836 posts including my alters
Member since Jun 2005
46007 posts
Posted on 2/8/22 at 2:58 pm to
Btw, what do you think he should charge? You seem to have pegged his cost at $50k. What’s acceptable to you?
Posted by FieldEngineer
Member since Jan 2015
2614 posts
Posted on 2/8/22 at 3:00 pm to
quote:

Louisiana has a new law that bans DYI swimming pool builds.


Link?
Posted by OldHickory
New Orleans
Member since Apr 2012
10780 posts
Posted on 2/8/22 at 3:20 pm to
It’s easier to ask forgiveness than permission.
Posted by ShermanTxTiger
Broussard, La
Member since Oct 2007
11326 posts
Posted on 2/8/22 at 3:58 pm to
quote:

Btw, what do you think he should charge? You seem to have pegged his cost at $50k. What’s acceptable to you?


Most General contractors charge 20% overhead and profit. It seems like 50k x 1.2 would be appropriate. That would be 60K. Giving the contractor 10K in profit for the job. 36K over costs seems excessive to me.
Posted by fwtex
Member since Nov 2019
3262 posts
Posted on 2/8/22 at 4:01 pm to
You have to start thinking like a Louisianian. Build yourself a cement pond.
Posted by djcaz33
Mandeville
Member since Dec 2007
627 posts
Posted on 2/8/22 at 5:02 pm to
I agree....rent a backhoe
Posted by Grassy1
Member since Oct 2009
7330 posts
Posted on 2/8/22 at 5:37 pm to
Get a few more quotes while you get your subs lined up.

Don't discuss this with neighbors. "some guy out of BR" if they ask

That said, it would take more than 10k for me to dig a hole in someone's backyard, and then depend on mostly illegal subs to finish the job while dealing with a demanding homeowner (like myself).

15-20k for sure. 30k if had plenty of work, and if the access looked tough, probably more.

Keep us updated!
Posted by ZydecoTigah
walker LA
Member since Sep 2010
464 posts
Posted on 2/8/22 at 6:23 pm to
I would be cautious with the pricing you get for a "rough" estimate, depending on the type of pool you want put in there could be a lot more involved here where the water table comes up to mere feet of the surface in a lot of areas. You probably aren't including the hours you put in the estimate and to hire qualified people is going to cost you more, Plumbers and Electricians are not cheap either, go with the contractor, he screws up, he eats it, do it yourself and screw up, it just proves you have a couyon for a contractor!
Posted by ShermanTxTiger
Broussard, La
Member since Oct 2007
11326 posts
Posted on 2/8/22 at 6:52 pm to
quote:

Plumbers and Electricians are not cheap either, go with the contractor, he screws up, he eats it, do it yourself and screw up, it just proves you have a couyon for a contractor!


I did this before twice. The first time I screwed up everything at least once. I still built the pool with better features and larger for 8k less. It was the golden age when you could build a pool for less than 30K.

I really think the law has artificially inflated costs. Pool contractors now have a monopoly and only have to bid against each other with nothing to keep the industry accountable.
Posted by good_2_geaux
Member since Feb 2015
797 posts
Posted on 2/8/22 at 8:59 pm to
whats the process to get a contractors license in LA? Maybe go that route.
Posted by Meauxjeaux
102836 posts including my alters
Member since Jun 2005
46007 posts
Posted on 2/8/22 at 9:22 pm to
quote:

Most General contractors charge 20% overhead and profit. It seems like 50k x 1.2 would be appropriate. That would be 60K. Giving the contractor 10K in profit for the job. 36K over costs seems excessive to me.


Did you include insurance, workers comp and taxes?

Just taxes alone on his $10k “profit” is gonna eat $2,500.

Is he onsite daily? What’s his IRR for his company? Is he investing in his business so he’ll be solid financially and around for a year to warranty his work and beyond that for extended support?

You’re asking a lot for $10k spread over 2 months. I assume pool construction takes about 2 months?
Posted by MLSter
Member since Feb 2013
4165 posts
Posted on 2/9/22 at 7:40 am to
I’m dealing with them now at work. A clerical error on a contract is costing us $500.
I went to drop the check off and they have a brand new multi million dollar headquarter down town. Was nice to see where my money was going.

Then we get another inquiry from them. I’ve wasted 4+ hours tracking shite down for them.
It’s all a load of bullshite.

Posted by kengel2
Team Gun
Member since Mar 2004
33571 posts
Posted on 2/9/22 at 7:48 am to
quote:

Most General contractors charge 20% overhead and profit. It seems like 50k x 1.2 would be appropriate. That would be 60K. Giving the contractor 10K in profit for the job. 36K over costs seems excessive to me.


Overhead isnt profit. For him to make $10k profit the price would have to be $70k.
Posted by shawnlsu
Member since Nov 2011
23682 posts
Posted on 2/9/22 at 12:05 pm to
quote:

Most General contractors charge 20% overhead and profit. It seems like 50k x 1.2 would be appropriate. That would be 60K. Giving the contractor 10K in profit for the job. 36K over costs seems excessive to me.

Do you realize that materials not only cost more than they did 15-20 years ago but they are harder to get as well, Gramps?
Posted by Meauxjeaux
102836 posts including my alters
Member since Jun 2005
46007 posts
Posted on 2/9/22 at 12:17 pm to
quote:

Overhead isnt profit. For him to make $10k profit the price would have to be $70k.


I once had a customer bitch at me for a line item I labeled "Supervision" in the contract.

Him: "What's this supervision number? It's pretty high!"

Me: "That's my fee. I'll be onsite daily, 3-4 hours a day. I charge $xx / hour for my time. You don't want a job with no supervision. Plus I'll be doing plenty of shopping and delivery for you."

Him: "But that's your profit! You should just take it out of the profit!"

Me: "No, my company makes a profit. I make a salary."

This post was edited on 2/9/22 at 12:18 pm
Posted by ShermanTxTiger
Broussard, La
Member since Oct 2007
11326 posts
Posted on 2/9/22 at 1:35 pm to
quote:

Do you realize that materials not only cost more than they did 15-20 years ago but they are harder to get as well, Gramps?



It has occurred to me. I did check prices on equipment, materials and prevailing labor rates. I added a 20% cushion too! We are building a home at the same location and have a clue about supply chain issues as well.
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