Texas homeowner guide

How to Hire a Contractor in Texas: License, Permit, Insurance and Contract Checklist

A source-backed Texas homeowner checklist for matching the work to state trade licenses, local permit rules, written bids, insurance information, contract terms, and payment milestones.

Short answer

Define the exact work first. Check the applicable Texas trade license, then confirm local registration, permit, and inspection rules for the property. Compare detailed written bids, verify the contracting business and insurance information, read lien and payment terms, and keep every project record.

Which license or local record should I check?

Ask who will hold the contract and who will perform each regulated part of the work. Match the name and license number on the proposal to the current state record. Then ask the local permitting office what registration, permit, and inspection rules apply at the property address.

Where to begin checking common Texas home-service work
WorkFirst record to checkWhat to match
ElectricalTDLR license searchElectrical contractor number, status, and associated license holder
Heating and air conditioningTDLR air-conditioning and refrigeration recordsContractor license, class, endorsement, company, and status
PlumbingTexas State Board of Plumbing Examiners public searchResponsible Master Plumber, company association, status, and insurance record
General remodeling or roofingCity or county permitting officeLocal registration, permit responsibility, inspections, and the licensed trades used
Mold assessment or remediationTDLR mold license searchThe license type must fit assessment or remediation work

Source note: A directory listing, business registration, or local permit is not a substitute for a required trade license. Check each record that applies to the actual scope.

Compare written scope, not just the total

Get more than one written bid when the project allows it. Each proposal should identify the contracting business, the work and exclusions, materials, allowances, permit responsibility, schedule, cleanup, warranty, payment milestones, and change-order process.

Texas contractor proposal checklist

  • The legal or assumed business name matches the contract and current records.
  • Required state trade license numbers appear on the proposal.
  • The city or county permit responsibility is assigned in writing.
  • Materials, quantities, allowances, and exclusions are specific.
  • Payments are tied to written milestones instead of calendar dates alone.
  • Changes require a priced written change order before the changed work begins.
  • Cleanup, inspections, closeout documents, and warranties are defined.

Read Texas contract and lien terms carefully

The Texas Attorney General advises homeowners to avoid blank contract spaces, keep copies of every signed document, and make sure the contract states what will be done and when it will begin and end. Texas homestead improvement and mechanic's lien rules can affect the property. Ask a qualified Texas attorney about any lien, financing, or legal term you do not understand before signing.

Ask for current insurance information

Request a current certificate that names the same business shown on the contract. Ask how liability coverage and workers' compensation apply to employees and subcontractors on the project. A certificate is not a warranty, and insurance does not replace licensing, permits, or a complete written contract.

Slow down after a storm

Storm pressure creates an opening for rushed contracts and incomplete repairs. Texas Department of Insurance guidance says to document damage, prevent additional damage when it is safe, save receipts, get more than one estimate, check references, and avoid full payment before completion. Coordinate permanent repairs with the insurer when a claim is involved.

Sources

Primary and authoritative sources checked for this guide.

  1. How to Avoid Home Improvement ScamsOffice of the Attorney General of Texas. Checked July 23, 2026.Supports: Written bids and contracts; Lien cautions; Payment and complaint guidance.
  2. Air Conditioning and Refrigeration ContractorsTexas Department of Licensing and Regulation. Checked July 23, 2026.Supports: Texas air-conditioning contractor licensing; License search.
  3. Electricians Consumer ProtectionTexas Department of Licensing and Regulation. Checked July 23, 2026.Supports: Electrical contractor license checks; Bid and payment guidance.
  4. Find-a-PlumberTexas State Board of Plumbing Examiners. Checked July 23, 2026.Supports: Texas plumbing license lookup.
  5. Hail Damage to Your Home or Car? What to Do NextTexas Department of Insurance. Checked July 23, 2026.Supports: Storm documentation; Repair estimates; Payment cautions.