Hiring a Contractor in Texas: Vetting Checklist

In many states, you can look up a general contractor's state license in seconds. Texas is different. There's no statewide license for general contractors, remodelers or roofers, so anyone can call themselves one. Specific trades are licensed, and checking them, plus a few other steps, separates solid contractors from risky ones.

Licenses you can verify

TDLR states that contractors who install, repair or maintain air conditioning, refrigeration or heating systems must hold a TDLR license, and companies must employ a licensed contractor.

General contractors, remodelers, roofers, fence builders and hardscapers aren't state-licensed. Some cities require contractor registration before permits. Lakeway, Lago Vista, Bee Cave, Hutto and Dripping Springs are examples in the Austin area. Registration isn't a quality guarantee, but it means the contractor is known to the city.

Ten-step vetting checklist

1. Verify trade licenses for every licensed trade on the job.
2. Get a certificate of insurance for general liability, sent directly by the insurance agent. Ask about workers' compensation. Texas lets most private employers opt out, so ask how injuries on your job would be covered.
3. Check city registration where required, and confirm who will pull permits.
4. Look at completed work similar to yours, ideally in homes of similar age.
5. Call references and ask about schedule, communication, change orders and cleanup.
6. Check independent reviews and complaint history, not just praise quoted on the contractor's own site.
7. Get a written contract (see below).
8. Tie payments to milestones, not dates. Avoid paying most of the price upfront.
9. Collect lien waivers from subcontractors and suppliers as you pay.
10. Keep everything: contract, change orders, permits, inspection results, warranties.

What the contract should include

• Scope of work with drawings or specifications.
• Materials (brands and models) and allowances.
• Start date, estimated duration and what happens with delays.
• Price and payment schedule.
• Change-order process, in writing, priced before the work.
• Who obtains permits and schedules inspections.
• Cleanup and debris removal.
• Warranty terms for workmanship and manufacturer warranties.
• How disputes are handled.

Door-to-door and storm sales

After hailstorms and freezes, door-to-door contractors flood Austin neighborhoods. The Texas Attorney General explains that for covered door-to-door sales, you have a three-day right to cancel, and the seller must give you written notice. For roofing and insurance claims, Texas also prohibits contractors from waiving your deductible or acting as your public adjuster. See hail season checklist.

Red flags

• Cash-only, or a large upfront payment.
• No written contract, or a vague one.
• Pressure to sign today.
• Asking you to pull the permit.
• No verifiable local address.
• Unwillingness to provide an insurance certificate.
• Licensed trade work done by unlicensed workers.

How a matching service fits in

A free matching service like ours can connect you with local contractors. We don't perform work or guarantee contractors, so use this checklist with every contractor, however you found them.

Comparing bids fairly

Line up bids by scope, not just total. Note what each includes for demolition, debris haul-off, permits, allowances and protection of floors and landscaping. If one bid is far lower, find out what's missing. Ask each contractor to price the same allowances so the numbers compare. Ask how long the quote is valid, since material prices change.