84 Lumber, a buildings materials and services supplier, has agreed to a one-year probation in Louisiana following issues arising from its handling of federal contracts in the aftermath of Hurricane Katrina.

Two minority contractors, who had received funds from the Federal Emergency Management Agency (FEMA) to rebuild two schools and a fire station in New Orleans post Katrina, claimed that their companies had been ruined by 84 Lumber's failure to complete the work for which they had been contracted and by excessively hiking up its bond rates.

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According to the Post-Gazette, instead of revoking its license, the Lousiana State Licensing Board for Contractors will monitor the company's activities in the state during a one-year time period. Also, 84 Lumber will disband its national program providing turnkey material/labor packages to contractors for the installation of framing, roofing, windows, doors, trim, insulation, drywall, and cabinets.

84 Lumber, based in Eighty Four, PA, operates more than 250 stores, plus component plants, door shops and kitchen and bath design centers in 30 states and employs more than 4,200.