How to choose a general contractor in Houston

Texas has no general contractor license, so vet the licensed plumber, electrician and HVAC contractor the remodeler will use, confirm the City of Houston permit is in the contractor's name, and sign a written contract before any work starts because Texas lien law on a homestead depends on it.

License and permits

Texas has no state license for general contractors, remodelers or builders. Anyone can call themselves a contractor. The plumbing, electrical and HVAC work on your project must still be done by companies licensed through TSBPE and TDLR, so your check is on the subcontractors, the permit, the insurance and the contract.

Texas issues no state license for general contractors. Insurance and references carry the weight here.

The City of Houston requires a building permit for additions, structural changes, moved walls, new openings, and most kitchen and bath remodels that touch plumbing or electrical, with inspections at rough-in and final. Confirm the scope with the Houston Permitting Center and make sure the permit is pulled in the contractor's name.

Walk away if

They want to start before a written contract is signed, or they say a handshake is fine for now.
They cannot name the licensed plumbing, electrical and HVAC companies that will work on your job.
They suggest skipping the permit to save time or money.
They want more than a small deposit before materials are on site, or a draw schedule that runs ahead of the work.
They will not provide a certificate of insurance sent directly from their agent.
They have run previous companies under other names, or the company is less than a year old.

Ask before you hire

Which licensed plumbing, electrical and HVAC companies will you use, and can I see their license numbers?
Will you pull the City of Houston permit in your name and schedule every inspection?
What is the draw schedule, and what milestone triggers each payment?
Will you provide lien waivers from every subcontractor and supplier with each payment?
What is the written change-order process, and who approves a change before the cost is added?

Houston specifics

Because Texas does not license the trade, the homeowner does the vetting a licensing board would do elsewhere. The place to start is the subcontractors. A remodel that touches plumbing needs a company under a Responsible Master Plumber licensed by TSBPE. Electrical work needs a TDLR-licensed electrical contractor. HVAC changes need a TDLR-licensed air conditioning contractor. If the general contractor cannot name those companies, the work is likely being done by whoever is cheapest that week.

Houston clay soil matters even for interior work. Moving a load-bearing wall or adding a room changes how the slab carries weight, and the city will want engineered drawings for structural changes. Hurricane season also matters. A roof opened for an addition in August needs a plan for weather, and a contractor who has worked in Houston for a few years will have one.

Texas lien law is the part most homeowners never hear about. A contractor’s lien on a homestead is only valid if the contract is in writing, signed before work starts, and signed by both spouses if you are married. Texas also requires the contractor to give you a written disclosure statement about your rights and the lien process before you sign a residential construction contract. Ask for it. A contractor who has never heard of it is telling you something.

Reading a general contractor bid

A complete bid is a scope document, not a number. It lists each room and what happens in it, the materials with brands and model numbers or an allowance figure for anything you have not picked yet, which subcontractors do the licensed work, who pulls the permit and schedules inspections, the start and finish dates, the draw schedule tied to milestones, the change-order process with pricing, how debris and dust are handled, and the labor warranty in years. Allowances are where bids get padded or gutted, so compare the allowance figures line by line. If one bid is far lower, the allowances are usually where the difference hides.

Frequently asked

Do general contractors need a license in Texas?

No. Texas has no state license for general contractors or remodelers. The plumbing, electrical and HVAC work on the project must still be done by state-licensed companies, which is where your license check belongs.

Why does the contract need to be signed before work starts?

Texas lien law gives a homestead strong protection. For a contractor to hold a valid lien on your homestead, the contract must be in writing, signed by both spouses if you are married, and signed before any work begins. A contractor who starts early is skipping a step that protects both of you.

Should I pay a general contractor in Houston up front?

Pay in draws tied to completed milestones, with a small deposit at most. Ask for a lien waiver from each subcontractor and supplier with every draw so you are not paying twice.