How do you check a general contractor in Texas?

Texas does not license general or residential contractors at the state level; its residential construction commission was abolished in 2009. Check whether your city registers contractors, confirm the business is a registered Texas entity, get references, and use the protections state law gives you: a required rights disclosure and a 10 percent reserve.

Who licenses general and residential contractors providers in Texas

No state general contractor license in Texas. Texas has no state license for general or residential contractors. The Texas Residential Construction Commission, which registered builders, was abolished in 2009. Some cities register contractors; San Antonio, for example, requires residential building and home improvement contractor registration. Licensed trades still apply: Houston, for example, says mechanical, electrical and plumbing work must generally be done by licensed people. You can confirm a company is a registered Texas business through the Comptroller's search.

Look up a company's business registration →

Key facts for Texas

• During the 2009 legislative session, House Bill 2295 failed to pass, abolishing the Texas Residential Construction Commission.
• The commission's records and property were transferred to the Texas Comptroller of Public Accounts.
• Texas owners must reserve 10 percent of the contract price during the work and for 30 days after it is completed.
• Before a Texas residential construction contract is signed, the contractor must deliver a Know Your Rights and Responsibilities disclosure statement.
• The Texas disclosure says a contractor may not require you to convey your property to the contractor as a condition of the agreement.
• Texas home improvement contracts on a homestead must carry a conspicuous warning that failing to meet the contract terms could cost the owner legal ownership rights in the home.
• Houston says a general contractor's license is not required for the structural portion of work.

Why doesn't Texas license general contractors?

Texas once registered home builders through the Texas Residential Construction Commission. In 2009, House Bill 2295 failed to pass, which abolished the commission, and its records went to the Comptroller (Sunset Commission). There is no state license number to look up for a general or residential contractor.

Some cities fill the gap. San Antonio requires residential building contractors to register, show insurance, pass an FBI background check and hold an ICC or approved certification. Houston says a general contractor's license is not required for structural work, though trades must be licensed.

What does Texas law require in your contract?

The contractor must give you a disclosure before you sign (Property Code 53.255). It says the contractor may not require you to convey your property to them, tells you to investigate the contractor and check references, and tells you to get a written agreement covering the work, timeline, cost and payment.

For improvements to a homestead, the contract must carry a bold warning that if you fail to meet its terms, you may lose legal ownership rights in your home (Property Code 41.007). Leaving it out is a deceptive trade practice under state law.

What is the 10 percent reserve?

Texas owners must reserve 10 percent of the contract price, or of the value of the work, while work is underway and for 30 days after it is completed (Property Code 53.101). The reserve protects you if unpaid subcontractors or suppliers file lien claims. Make sure your payment schedule leaves room for it.

How to choose a provider in Texas

• Ask whether your city registers contractors and verify the registration.
• Confirm the company is a registered Texas business entity.
• Get the Know Your Rights disclosure before you sign.
• Get a written contract with scope, timeline, cost and payment terms.
• Keep the 10 percent statutory reserve until 30 days after completion.
• Confirm licensed trades will handle electrical, plumbing and HVAC work.
• Confirm who pulls the permits.

General and residential contractors in Texas cities

• Austin
• Dallas
• Houston
• San Antonio

Questions people ask

Do I need a licensed general contractor in Texas?

Texas has no state general contractor license. Trades such as electrical, plumbing and HVAC must be licensed, and some cities register contractors.

What happened to the Texas Residential Construction Commission?

It was abolished in 2009 when House Bill 2295 failed to pass. Its records went to the Comptroller.

What is the 10 percent rule in Texas?

Owners must reserve 10 percent of the contract price during the work and for 30 days after completion.

Can a contractor make me sign over my property?

No. The required Texas disclosure says a contractor may not require you to convey your property as a condition of the agreement.

What warning must a Texas homestead improvement contract include?

A conspicuous notice that if you fail to meet the contract's terms, you may lose legal ownership rights in your home.

How can I check a Texas contractor without a license?

Check city registration where it exists, confirm the business on the Comptroller's search, get references and verify trade licenses.

Sources

• Texas Sunset Advisory Commission, Texas Residential Construction Commission (agency history)
• Texas Property Code 53.101, funds required to be reserved
• Texas Property Code 53.255, disclosure statement for residential construction
• Texas Property Code 41.007, home improvement contract
• Texas Comptroller, franchise tax account status search
• Houston Permitting Center, Top 10 Things to Know About Permitting (March 2024)
• City of San Antonio DSD, Building and Home Improvement contractor registration

This guide was written by our editorial team from the public sources listed above. It is general information, not legal advice; confirm licensing and terms directly with any provider.