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What a fair Texas remodel contract says

The BidWell teamLast checked against Texas law on Nov 2, 2026 · 9 min read

This explains Texas law in plain terms. It is not legal advice. For a specific contract or dispute, talk to a Texas attorney.

A fair remodel contract tells you four things in writing: what work gets done, how long it takes, what it costs, and when you pay.

It also says what happens when something changes. If any of that lives only in a conversation, it isn't in your contract.

Texas law gives you a head start. Before you sign a contract to remodel your home, your contractor has to hand you a short statement of your rights. Read it. It's the best checklist you'll get for free.

Here's what a fair contract says, what to question, and the paperwork to expect. It covers remodeling the home you live in.

Start with the disclosure your contractor has to give you

Before you sign a residential construction contract, the contractor gives you a statement the law writes out word for word. It starts with "KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW" (Texas Property Code 53.255).

In short, it tells you:

  • Know your contractor. Get references from people who hired them for a job like yours, and check them.
  • Get it in writing. The agreement should describe the work, the time to finish it, the cost or how it's figured, and how and when you pay.
  • Put every promise in the contract. A spoken promise that isn't written in may not be enforceable.
  • Read before you sign. Take your time. You can have your own attorney review anything.
  • You don't have to sign your property over. A contractor may not require you to convey your property to them as a condition of the job.
  • Get the list of subs and suppliers, watch where your payments go, hold back 10%, and get a bills-paid affidavit at the end. More on each below.

If you get a contract and no disclosure, ask for it.

What a fair contract says

Here's what to look for, section by section. A small job won't have every line. The bigger the job, the more should be there.

Who's who

The contractor's legal business name, address and phone. Yours, and the property address. If any of the work needs a state-licensed trade (electrical, plumbing, heating and air), the license number of whoever does it. There's more on licenses in how to vet a contractor.

The work, in detail

This is where most fights start, so it's worth the most attention. A fair scope says:

  • What's included. "Remove and replace tile on shower walls to the ceiling, about 96 sq ft." Not "redo shower."
  • Materials. Brand, model, size or grade where it matters. If you haven't picked the tile yet, an allowance: a dollar amount per square foot, and what happens if your pick costs more or less.
  • What's not included. Painting, drywall repair outside the work area, moving furniture, hauling off the old vanity. Exclusions are fair. Surprises aren't.
  • Hidden conditions. What happens if they open a wall and find rot or bad wiring. A fair contract says they stop, show you, and price the fix in writing before doing it.

The schedule

A start date and a finish date, or a number of working days, and what can move them: weather, inspections, change orders. If you need it done by a certain day, put it in.

The price

The total, and how it's figured. A fixed price should say what it covers. A cost-plus contract should say how costs are shown to you and what the fee is.

How and when you pay

A payment schedule tied to work you can see. "25% when tile is set" is better than "25% on the 15th." The last payment should come after a walk-through, when the work is done and you've looked at it.

How much to pay at signing is its own question. We cover it in how much to pay up front.

Change orders

How changes get priced and approved. The fair version: any change is written up with its price and schedule effect, and you sign it before the work changes. See change orders from the homeowner's side.

Permits and inspections

Who pulls the permit and who's there for inspections. Usually the contractor. The Federal Trade Commission lists a contractor asking you to get the permits yourself as a sign of a possible scam (FTC).

Cleanup, warranty and the end of the job

Daily and final cleanup. Any labor warranty, in writing, with how long it lasts.

The Texas paperwork that comes with the job

Texas law expects a set of papers on a residential job. You don't manage them. You should notice if they don't show up.

The list of subs and suppliers. Before work starts, the contractor gives you a written list of the subs and suppliers they plan to use, and updates it within 15 days of a change (53.256).

You can waive it in writing, but you don't have to. Our contractor guide explains the subcontractor list.

A disbursement statement with each payment request. Each time the contractor asks for money, they tell you which direct subs or suppliers they intend to pay from it (53.258). The disclosure tells you to review these and make sure the money goes where it should.

Lien waivers. Texas has four statutory waiver forms, conditional and unconditional, progress and final (53.284). A waiver shows the contractor gave up lien rights for the money you paid. See Texas lien waivers.

The 10% reserve. Texas law has the owner hold back 10% of the contract price, or of the value of the work, during the job and for 30 days after it's complete (53.101).

The disclosure warns that if you don't, and a sub or supplier makes a valid claim the contractor doesn't pay, you may be personally liable up to the amount you should have held. A fair contract makes room for it in the payment schedule.

The bills-paid affidavit. At final payment, the contractor gives you a sworn statement that everyone who furnished labor or materials has been paid, or lists who hasn't and how much (53.259).

If someone is listed as unpaid, the disclosure tells you to hold that amount until you get a waiver or release from them. More in the bills-paid affidavit.

Why it matters: under Texas law, an unpaid sub or supplier may be able to put a lien on your property, even though you never hired them. These papers show the money reached them.

If the home is your homestead

If you live in the house, it's likely your homestead, and Texas has extra rules.

For a contractor to have a lien on a homestead, there has to be a written contract signed before work starts, signed by both spouses if you're married, and filed with the county clerk (53.254).

A contract to improve an existing home must also carry a bold warning that starts "IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract," and ends "KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW" (Property Code 41.007).

If the contract has a binding arbitration clause, the same section says it must be printed in bold type. If it isn't, that clause can't be enforced against you.

The Texas Attorney General warns that if a homestead contract creates a lien and you don't pay, you could lose your home, and says a notary other than the salesperson must be present when you sign it (Texas Attorney General).

Have an attorney look if anything is unclear.

On a homestead job over $5,000, the contractor has to deposit your payments in a construction account at a financial institution (Property Code 162.006). The Attorney General suggests asking for written proof the account exists.

If you sign at your kitchen table

For many sales made at your home, you have three business days to cancel. The federal rule is the FTC's Cooling-Off Rule (16 CFR 429); Texas has its own version in Business and Commerce Code chapter 601.

When it applies, the contract has to tell you, with a cancellation form attached. You can cancel until midnight of the third business day after the sale; Sundays and federal holidays don't count.

Fair works both ways

A fair contract protects the contractor too. A deposit for special-order materials, a charge for a change you asked for, a pause if a payment is missed: all fair.

What isn't fair is a contract that leaves you guessing. Watch for:

  • Blanks. The Attorney General says never sign a contract with blanks in it.
  • "TBD" on anything that costs money.
  • Full payment before the work.
  • Pressure to sign today.
  • Promises that never made it into the writing.

More in remodeling scams.

At the end of the job

Walk the job together, write a punch list, and pay the final when it's done. The Attorney General says don't sign a certificate of completion until the work is finished, the site is cleaned up and you're satisfied.

At final payment, expect the bills-paid affidavit and a final lien waiver. Keep every paper in one place.

Questions homeowners ask

For a lien on your homestead, yes: signed before work starts and filed. Either way, the disclosure tells you to get one. A written contract protects both of you. Get one even on a small job.

Sources

This explains Texas law in plain terms. It is not legal advice. For a specific contract or dispute, talk to a Texas attorney. Residential remodels only; commercial rules differ.