How to Hire a General Contractor in Houston

The 30-second answer

• Texas does not license general contractors, so verify general liability insurance and workers' compensation yourself.
• Make sure licensed trades—electrical, plumbing, and HVAC—are handled by state-licensed pros who pull their own permits.
• Get at least three itemized, written bids instead of a single lump-sum number.
• Check references, drive by recent local jobs, and read reviews for patterns.
• Sign a detailed contract with a milestone-based payment schedule, and avoid large upfront deposits.

Verify insurance and trade licenses first

Unlike many states, Texas does not issue a statewide license for general contractors. That puts the responsibility on you to confirm a contractor is legitimate. Ask for a certificate of general liability insurance and, if they have employees, workers' compensation—then call the insurer to confirm it is active. A contractor working uninsured can leave you liable for on-site injuries or property damage.

While GCs are not licensed, the specialty trades are. In Texas, electricians and HVAC contractors are licensed through TDLR, and plumbers through the Texas State Board of Plumbing Examiners. Confirm that your project's electrical, plumbing, and mechanical work will be performed and permitted by properly licensed subcontractors.

Compare bids the right way

The lowest number is rarely the best deal. Ask each contractor for an itemized bid that breaks out materials, labor, allowances (for items like tile or fixtures), and a contingency for surprises. When bids are itemized, you can see why one is higher—better materials, more thorough prep, or realistic allowances—rather than guessing. A bid far below the others often means something important was left out, and you will pay for it later as a change order.

Get every project scoped the same way so you are comparing like for like. Vague, one-line quotes make it nearly impossible to hold anyone accountable.

Put it in writing before work begins

A strong contract protects both sides. It should spell out the scope of work, materials and allowances, start and completion dates, who pulls permits, how change orders are handled, and a payment schedule tied to milestones—not the calendar. A reasonable structure is a modest deposit followed by draws as defined stages are completed and inspected.

Be cautious of anyone who wants a large cash deposit up front, pressures you to skip permits, or cannot provide a written agreement. In Houston, most structural work, additions, and electrical, plumbing, and mechanical changes require permits through the Houston Permitting Center; pulling them protects your investment and your future resale. Doing this homework up front is the single best way to get excellent results the first time.