§2779. Construction contracts, subcontracts, and purchase orders; certain provisions
invalid
A.(1) For purposes of this Chapter, "construction contract" means any
agreement for the design, construction, alteration, renovation, repair, or maintenance
of a building, structure, highway, road, bridge, water line, sewer line, oil line, gas
line, appurtenance, or other improvement to real property, or repair or maintenance
of a highway, road, or bridge, including any moving, demolition, or excavation.
(2) "Construction contract" does not include any design, construction,
alteration, renovation, repair, or maintenance of the following:
(a) Any dirt or gravel road used to access oil and gas wells and associated
facilities.
(b) Oil flow lines or gas gathering lines used in association with the
transportation of production from oil and gas wells from the point that oil and gas
becomes comingled for transportation to oil storage facilities or gas transmission
lines.
(c) Any deed, lease, easement, license, or other instrument granting an
interest in or the right to possess property even if the instrument includes the right to
design, construct, alter, renovate, repair, or maintain improvements on such real
property.
(d) Upstream, midstream, or downstream oil, gas, chemical, petrochemical,
or fuel manufacturing facilities or infrastructure, including refineries, processing
plants, terminals, or associated appurtenant structures and facilities.
B. The legislature finds that, with respect to construction contracts,
subcontracts, and purchase orders for public and private works projects, when one
of the parties is domiciled in Louisiana, and the work to be done and the equipment
and materials to be supplied involve construction projects in this state, any provision
in such agreements requiring disputes to be resolved in a forum outside of this state
or requiring their interpretation to be governed by the laws of another jurisdiction are
inequitable and against the public policy of this state.
C. The legislature hereby declares null, void, and unenforceable as against
public policy any provision in a contract, subcontract, or purchase order, as described
in Subsection B of this Section, which either:
(1) Requires a suit or arbitration proceeding to be brought in a forum or
jurisdiction outside of this state; rather, such actions or proceedings may be pursued
in accordance with the Code of Civil Procedure or other laws of this state governing
similar actions.
(2) Requires interpretation of the agreement according to the laws of another
jurisdiction.
D. The provisions of this Section apply to contracts, subcontracts, and
purchase orders as described in Subsection B of this Section.
E. Notwithstanding any other provisions of law to the contrary, the
provisions of this Section do not apply to negotiated labor contracts.
Acts 1991, No. 217, §1; Acts 2026, No. 132, §1.