Why vetting matters more in Texas
Texas once registered home builders through the Texas Residential Construction Commission, but the Legislature let it expire and the commission was abolished on September 1, 2009 (Texas Sunset Advisory Commission). Since then there has been no statewide general contractor license or exam. Cities fill part of the gap through permits and contractor registration, but nobody checks a contractor's track record before they knock on your door.
1. Check the trade licenses that do exist
Electrical and air conditioning work in Texas must be done under a license from the Texas Department of Licensing and Regulation, and plumbing under the Texas State Board of Plumbing Examiners. Ask who will do that work on your job and look the license up yourself (TDLR license search, TSBPE). A general contractor doesn't need those licenses if licensed trade partners do the work, but they should name them.
2. Ask who pulls the permit
If the job needs a permit, the contractor should pull it in their own name. In Austin a homeowner can register and act as the contractor for their own property (City of Austin Homeowner's Permit), but if a contractor asks you to pull the permit yourself, you're taking on the responsibility for code compliance. See our Austin residential permit guide and the express permit guide for which projects need what.
3. Get proof of insurance
Ask for a certificate of general liability insurance sent directly from the insurance agent, with your name and address listed as the certificate holder. Ask whether the crew is covered by workers' compensation or another policy, since Texas doesn't require private employers to carry it.
4. Compare itemized bids, not totals
A one-line price can't be compared. Ask for a proposal that breaks out demolition, framing, each trade, finishes, allowances, permits, and cleanup, with one lump-sum total. Low allowances for cabinets, tile, or fixtures are the most common way a cheap bid turns into an expensive job. Every Stealth proposal is itemized line by line for this reason, and our tenant finish-out cost guide explains what moves commercial pricing.
5. Tie payments to progress
A reasonable schedule is a deposit, then payments at completed milestones such as rough-in passed, drywall done, and final inspection, with a final payment held until the punch list is finished. Be wary of anyone asking for most of the money before work starts.
6. Put changes in writing
The contract should say how change orders are priced and approved. Every change should be written, priced, and signed before the work is done.
7. Look at real work
Ask for photos of finished jobs, addresses of projects you can drive by, and references from recent clients. You can see ours on the projects page.
Red flags
- Cash only, or a large payment up front
- No written contract or a one-line price
- Asks you to pull the permit
- Can't name their electrician or plumber
- Pressure to sign the same day