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How to vet a contractor before you hire

The BidWell teamLast checked against Texas law on Nov 2, 2026 · 7 min read

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

Texas licenses certain trades, like electrical, plumbing, and heating and air. So "are you licensed?" is only part of the answer.

Better questions: who does the electrical and plumbing, are you insured, and who can I call about a job like mine?

Here's what to check, in the order it's worth doing, and the signs that mean walk away. None of it takes long. An hour of checking can save a year of trouble.

What Texas licenses, and how to check

At the state level, three licenses matter on most remodels:

On a remodel, these trades are often subs. That's normal. Ask your contractor who will do the electrical, plumbing or HVAC work, and get that person's license number. Then look it up on the agency's site. It takes two minutes. For anything else, your city's permit office can tell you what it requires for your job.

The Texas Attorney General gives the same advice: if the worker must be licensed by the state, contact the licensing agency to check credentials and ask about complaints (Texas Attorney General).

Check their insurance, from the source

Ask for a certificate of insurance. The FTC lists asking for proof of insurance as a basic step (FTC).

What to look for:

  • General liability. It covers damage to your home or injuries to other people caused by the work. Check the dates. An expired certificate proves nothing.
  • Workers' compensation. It covers the contractor's workers if they're hurt on your property. Texas law makes it elective for most private employers (Labor Code 406.002), so some contractors don't carry it. If they don't, ask how injuries are handled, and call your homeowner's insurance agent about what your policy covers.

The good habit: ask the contractor to have their insurance agent send the certificate to you directly.

A certificate that comes from the agent is harder to fake than a photo of an old one. If you're unsure, call the agent listed on it and ask if the policy is active.

Call the references, and ask the right questions

Texas law tells you to do this. The disclosure your contractor gives you before you sign says to get references from people who used the contractor for the type and size of project you're planning, and to verify them (Property Code 53.255).

A reference for a fence doesn't tell you much about a bathroom. Ask for two or three jobs like yours, from the last year or two.

Questions worth asking:

  1. Did the job finish when they said it would? If not, why?
  2. Did the final price match the contract? What changed, and how was it handled?
  3. Did they get changes approved in writing before doing them?
  4. Was the site kept clean? Were they on time?
  5. Was there a problem after the job? How did they handle it?
  6. Would you hire them again?

The Attorney General suggests asking whether you can see the finished work. Most happy customers will send a photo, and some will let you stop by.

Look them up

A few quick searches:

  • The business name plus "complaint," "review" and "scam." The FTC suggests exactly this, and says to read reviews with a critical eye.
  • A physical address. The Attorney General suggests a contractor with an established physical address, so you can find them if a problem comes up later.
  • Your county's records, if you're spending real money. A contractor with liens filed by unpaid suppliers is worth a question. Lien claims are filed with the county clerk where the property is (Property Code 53.052), so ask your county clerk's office how to search them.

One bad review isn't a reason to walk. A pattern is. So is how they answered complaints.

Ask how they work

A short conversation tells you a lot. Listen for straight answers.

  • "Who pulls the permit?" The contractor should. The FTC lists a contractor asking you to get the permits yourself as a sign of a scam. Your city's permit office can tell you what work needs one.
  • "Who will be here every day?" Their own crew, subs, or both.
  • "Will you give me the list of subs and suppliers?" On a Texas residential job, it's required before work starts unless you waive it (53.256). A contractor who knows this answers yes without thinking. Here's what the list is.
  • "How do you handle changes?" The answer you want: written, priced and signed before the work changes. See change orders from the homeowner's side.
  • "What's the payment schedule?" Payments tied to finished stages, with the last one after a walk-through. See how much to pay up front.
  • "Can I see a sample contract?" A pro has one. Compare it to what a fair remodel contract looks like.

Red flags worth walking away from

Some of these come straight from the FTC and the Texas Attorney General. There's more in remodeling scams and how to protect yourself. Any one is reason to slow down. Two or more, walk away.

  • They showed up at your door saying they were "in the area" or had leftover materials.
  • They want you to decide today.
  • They want all the money up front, or cash only.
  • They want you to pull the permit.
  • They won't put the price, the scope or the schedule in writing.
  • They suggest a lender they know, and push you to use it.
  • Their bid is far below everyone else's with no explanation. The Attorney General warns that a very low bid may leave out work you expect.
  • They won't give you references, or the references don't call back.
  • They can't tell you who does the licensed trade work.

An example

Dana in Mesa Creek wants her hall bath redone. She gets three names.

The first sends a certificate straight from his agent, gives two references from bathroom jobs last spring, and names the licensed plumber he uses.

The second says insurance "is handled" and offers a 15% discount for cash. The third is fine on paper, but one reference says changes were done first and priced later.

She doesn't need to pick yet. She already knows who she's asking more questions and who she's not calling back.

Questions homeowners ask

For some trades. Electricians, plumbers and heating and air contractors need state licenses. Ask who does that work on your job and look up their license. Your city's permit office can tell you what else it requires.

Sources

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