How to Choose a General Contractor in Houston - 10 Essential Steps

Choosing the right general contractor in Houston can make the difference between a dream renovation and a construction nightmare. With thousands of contractors in the Greater Houston area, how do you find one you can trust with your home and your hard-earned money?

This comprehensive guide walks you through 10 essential steps for selecting a qualified, reputable Houston general contractor. Whether you're planning a kitchen remodel, bathroom renovation, or whole-house addition, these strategies will help you avoid costly mistakes and find the perfect partner for your project.

1. Verify Texas Contractor Licensing

In Texas, residential general contractors must be registered with the Texas Residential Construction Commission (TRCC). This is your first and most important verification step.

How to Verify TRCC License:

1. Visit texreg.state.tx.us/rov/
2. Enter the contractor's name or license number
3. Verify the license is active (not suspended or revoked)
4. Check for any disciplinary actions or complaints

Red Flag: Any contractor who refuses to provide their license number or claims they "don't need a license" should be immediately disqualified. Operating without proper licensing in Texas is illegal and leaves you with zero legal recourse if problems arise.

For commercial projects, verify licensing with the Texas Department of Licensing and Regulation (TDLR). Different license types exist for commercial, plumbing, electrical, and HVAC work.

2. Confirm Insurance and Bonding

A legitimate Houston general contractor must carry three types of insurance:

Required Insurance Types:

• General Liability Insurance - Minimum $1-2 million coverage protects against property damage and injuries
• Workers' Compensation Insurance - Covers all employees and subcontractors working on your property
• Commercial Auto Insurance - Covers work vehicles and transportation of materials

How to Verify Insurance:

1. Request a current Certificate of Insurance (COI) directly from their insurance company
2. Call the insurance company to verify coverage is active (don't rely on photocopies)
3. Confirm you're listed as "Additional Insured" on their policy
4. Verify coverage amounts meet or exceed state requirements

Without proper insurance, you're personally liable for accidents, injuries, or property damage during your project. This can cost hundreds of thousands of dollars in medical bills, legal fees, and damage repairs.

3. Check Online Reviews and References

Online reviews provide unfiltered insights into a contractor's work quality, communication, and professionalism. Here's how to evaluate reviews effectively:

Where to Check Reviews:

• Google Business - Most reliable source with verified customer reviews
• Better Business Bureau (BBB) - Check for complaints and resolution history
• Yelp - Look for patterns in positive and negative feedback
• Houzz - Design-focused reviews from homeowners who completed renovations
• Angi (formerly Angie's List) - Verified customer reviews and ratings

What to Look For in Reviews:

• Overall rating of 4.5+ stars across multiple platforms
• Consistent praise for communication, timeliness, and quality
• At least 25-50+ reviews (more reviews = more reliable data)
• Recent reviews within the past 6 months
• Professional, constructive responses to negative reviews

Red Flags in Reviews:

• Multiple complaints about the same issue (poor communication, delays, etc.)
• Unresolved BBB complaints or legal actions
• No online presence or reviews at all
• Only generic five-star reviews with no specific details
• Defensive or aggressive responses to criticism

Ask for Personal References:

Request 3-5 references from projects completed within the past year that are similar to yours (kitchen remodel, bathroom renovation, etc.). When calling references, ask:

1. "Was the project completed on time and within budget?"
2. "How was communication throughout the project?"
3. "Were there any surprises or issues? How were they handled?"
4. "Would you hire them again for future projects?"
5. "Can I see photos of the finished work?"

4. Get Multiple Detailed Written Estimates

Never hire based on a single estimate. Get at least 3 detailed written estimates from licensed Houston general contractors to compare pricing, scope, and professionalism.

What Should Be Included in an Estimate:

• Itemized costs - Labor and materials broken down by task
• Project timeline - Start date, estimated completion, and milestone schedule
• Payment schedule - When payments are due and what work must be completed
• Materials specifications - Brand names, model numbers, and quality grades
• Warranty information - What's covered and for how long
• Contractor credentials - License number, insurance details, business address
• Permit details - Which permits are required and who obtains them

Warning Signs in Estimates:

• Verbal estimates only (no written documentation)
• Vague descriptions like "kitchen remodel - $30,000"
• Significantly lower than other bids (20%+ below average)
• Pressure tactics or "limited-time offers"
• Large upfront payment required (more than 10% is suspicious)
• No breakdown of labor vs. materials costs

How to Compare Estimates:

Don't simply choose the lowest price. Compare:

1. Scope of Work - Are all estimates including the same services?
2. Materials Quality - Is one using premium brands while another uses budget options?
3. Timeline - Are completion dates realistic and similar?
4. Payment Terms - Is the payment schedule tied to project milestones?
5. Professionalism - How detailed and organized is the estimate?

A detailed, organized estimate demonstrates professionalism and attention to detail - qualities you want in your general contractor.

5. Understand Houston-Specific Requirements

Houston has unique building codes, permit requirements, and environmental factors that your contractor must understand and navigate.

Houston Building Codes and Permits:

• Houston Building Code - Based on International Building Code (IBC) with local amendments
• Flood Zone Requirements - Many Houston properties require elevated foundations or flood-resistant construction
• Energy Code Compliance - Texas Energy Code requires specific insulation and HVAC efficiency standards
• Hurricane Preparedness - Wind-resistant roof installation and impact-resistant windows may be required

Required Permits in Houston:

Your general contractor must obtain permits for:

• Structural changes (removing walls, adding square footage)
• Electrical work (new circuits, panel upgrades)
• Plumbing modifications (moving fixtures, adding bathrooms)
• HVAC installation or replacement
• Roofing and exterior modifications

Important: Your contractor should handle all permit applications, fees, and scheduling inspections. If they suggest "skipping permits to save money," walk away immediately. Unpermitted work can:

• Void your homeowner's insurance
• Create liability issues if you sell your home
• Result in fines from the city ($500+ per violation)
• Require expensive demolition and reconstruction to bring up to code

Houston Climate Considerations:

Your contractor should understand Houston's climate challenges:

• High humidity - Requires proper ventilation and moisture barriers
• Hurricane season - June-November brings potential delays and requires weather-resistant construction
• Expansive clay soil - Causes foundation movement; requires proper drainage and foundation design
• Extreme heat - Demands energy-efficient windows, insulation, and HVAC sizing

A contractor experienced in Houston construction understands these factors and builds accordingly.

6. Ask the Right Questions During Consultation

Your initial consultation is your chance to assess the contractor's knowledge, communication style, and professionalism. Come prepared with these 10 essential questions:

10 Questions to Ask Every Houston General Contractor:

1. "What is your TRCC license number and how long have you been licensed?"
   Look for at least 5+ years of licensed experience in Houston.
2. "Can you provide proof of insurance and bonding?"
   Request current Certificate of Insurance (COI) and verify directly with insurer.
3. "Will you pull all necessary permits for this project?"
   The answer must be "yes" - no exceptions.
4. "Who will be on-site supervising the project daily?"
   Understand if the owner, a project manager, or lead foreman will be present.
5. "What is your payment schedule?"
   Payment should be tied to project milestones, not arbitrary dates. Never pay more than 10% upfront.
6. "How do you handle change orders and additional costs?"
   Understand the process and pricing for changes you request mid-project.
7. "What is your warranty policy?"
   Most reputable contractors offer 1-year workmanship warranty minimum.
8. "Can I contact 3-5 recent clients?"
   Hesitation to provide references is a major red flag.
9. "How do you handle delays or unforeseen issues?"
   Their answer reveals problem-solving approach and communication style.
10. "What happens if I'm not satisfied with any aspect of the work?"
    Look for a clear resolution process and commitment to customer satisfaction.

Evaluate Their Answers:

Pay attention to:

• Confidence and clarity - Do they answer directly or evade questions?
• Transparency - Are they open about processes, costs, and challenges?
• Professionalism - Do they show up on time, prepared, and organized?
• Communication style - Do they listen to your concerns and explain technical concepts clearly?

Trust your instincts. If something feels off during the consultation, it's probably a sign to keep looking.

7. Review the Contract Thoroughly

Never start work without a comprehensive written contract. A proper Houston general contractor contract must include:

Essential Contract Elements:

• Detailed Scope of Work - Specific description of all work to be performed, materials to be used, and finishes to be installed
• Itemized Cost Breakdown - Labor and materials costs separated and detailed
• Payment Schedule - When payments are due, tied to specific project milestones (not dates)
• Project Timeline - Start date, estimated completion date, and schedule for major milestones
• Change Order Process - How changes are requested, priced, and approved in writing
• Warranty Terms - What's covered, for how long, and the process for warranty claims
• Contractor Credentials - License number, insurance policy numbers, and business registration
• Permit Information - List of all required permits and who is responsible for obtaining them
• Cleanup and Disposal - Who handles daily cleanup and final debris removal
• Dispute Resolution - Process for handling disagreements (mediation, arbitration, etc.)
• Termination Clause - Conditions under which either party can terminate the contract
• Signatures - Both parties must sign and date the contract

Red Flags in Contracts:

• Vague or incomplete scope of work
• No payment schedule or unreasonable upfront payment (>10%)
• No start or completion dates specified
• No warranty information included
• Contractor's information missing or incomplete
• Unsigned or undated contract
• Handwritten changes without both parties initialing

Before Signing:

1. Read every word of the contract carefully
2. Ask questions about anything unclear or concerning
3. Have an attorney review complex or high-value contracts
4. Keep a signed copy for your records
5. Never sign under pressure or before you're ready

8. Avoid These Common Houston Contractor Scams

Unfortunately, contractor fraud is common in Houston. Protect yourself by recognizing these scams:

Common Contractor Scams:

1. The "Storm Chaser" Scam

After hurricanes or severe weather, out-of-state contractors flood Houston offering quick repairs. They:

• Demand large upfront payments
• Do substandard work or disappear with your money
• Have no local business address or credentials

Protection: Only hire licensed Texas contractors with verifiable local addresses and references.

2. The "Leftover Materials" Scam

Contractors offer discounts using "leftover materials from another job." They:

• Use cheap, inferior materials instead
• Demand cash payment (no paper trail)
• Complete subpar work and disappear

Protection: Insist on new materials specified in your contract and never pay cash.

3. The "Permit Not Needed" Scam

Contractors claim permits aren't required to "save you money." They:

• Do unpermitted work that violates code
• Leave you liable for fines and corrections
• Create insurance and resale issues

Protection: Always verify permit requirements with the City of Houston Building and Standards Department.

4. The "Pay in Full Upfront" Scam

Contractors demand 50%+ upfront payment before starting work. They:

• Disappear with your deposit
• Complete partial work and abandon the project
• Use your money for other projects

Protection: Never pay more than 10% upfront. Payment should be tied to completed milestones.

5. The "Unlicensed Subcontractor" Scam

Contractors hire unlicensed subcontractors to cut costs. This:

• Results in poor quality work
• Voids warranties and insurance coverage
• Makes you liable for injuries on your property

Protection: Verify your contractor uses only licensed subcontractors and carries workers' comp insurance.

How to Report Contractor Fraud:

If you're a victim of contractor fraud in Houston:

1. Texas Residential Construction Commission - File complaint at texreg.state.tx.us
2. Better Business Bureau - Submit complaint at bbb.org
3. Texas Attorney General - Consumer protection division handles fraud cases
4. Houston Police Department - File police report for theft or fraud
5. Small Claims Court - Sue for damages up to $20,000

9. Understand the Payment Schedule

A fair payment schedule protects both you and your contractor. Here's what's reasonable:

Typical Houston Contractor Payment Schedule:

Payment Stage	Percentage	Milestone
Deposit	10%	Contract signed, project scheduled
Materials Delivery	25-30%	Major materials delivered to job site
Rough-In Complete	25%	Framing, plumbing, electrical rough-in done and inspected
Substantial Completion	25%	All major work completed, awaiting final touches
Final Payment	10-15%	Project 100% complete, final inspection passed, you're satisfied

Payment Schedule Red Flags:

• More than 10-15% upfront deposit
• Payments based on dates instead of milestones
• Final payment due before project completion
• Contractor demands cash payment (always use check or credit card for paper trail)
• No retention (holdback) until final completion and your satisfaction

Best Practices for Payments:

• Never pay 100% upfront or before work is complete
• Hold back 10-15% until final completion and your satisfaction
• Always pay by check or credit card (never cash)
• Document what work was completed before each payment
• Take photos of work at each payment milestone
• Get lien releases from contractor and major subcontractors

A legitimate contractor understands these payment terms and will work within this structure. If they push for different terms, ask why and evaluate if their explanation makes sense.

10. Monitor Progress and Maintain Communication

Once work begins, your involvement doesn't end. Active monitoring and communication ensure project success.

How to Monitor Your Project:

Daily Check-Ins:

• Visit the job site daily (if possible) or every few days
• Take photos to document progress
• Note any concerns or questions for your contractor
• Verify workers are present and productive

Weekly Progress Meetings:

• Schedule weekly meetings with your general contractor
• Review completed work against the contract scope
• Discuss upcoming week's schedule and any changes
• Address concerns before they become major issues

Document Everything:

• Take daily photos of work progress
• Keep all receipts, invoices, and payment records
• Document all communications (emails, texts, phone calls)
• Save copies of all permits and inspection reports
• Note any changes or additions to the original scope

Red Flags During Construction:

• Workers not showing up consistently
• Work quality noticeably declining
• Contractor avoiding your calls or site visits
• Unexplained delays or excuses
• Requests for additional payments outside the contract
• Inspections failing repeatedly
• Subcontractors complaining about non-payment

If you notice red flags, address them immediately with your contractor in writing. Document their response and set clear expectations for resolution.

Communication Best Practices:

• Establish preferred communication method (text, email, phone)
• Set expectations for response time (24-48 hours is reasonable)
• Put all change requests in writing before work begins
• Ask questions when you don't understand something
• Address concerns promptly and professionally
• Confirm agreements in writing via email or text

Bonus Tips for Houston Homeowners

Best Time to Hire a Houston General Contractor:

• Fall (September-November): Post-hurricane season, contractors less busy, better availability
• Winter (December-February): Slowest season, potential discounts, faster scheduling
• Avoid Hurricane Season (June-November): Weather delays common, insurance complications

Financing Your Houston Remodeling Project:

• Home Equity Line of Credit (HELOC) - Flexible borrowing, typically lowest interest rates
• Home Equity Loan - Fixed rate, lump sum payment
• Cash-Out Refinance - Replace mortgage and borrow additional funds
• Personal Loan - No collateral required, faster approval
• FHA 203(k) Loan - Purchase and renovation financing combined

Many reputable Houston general contractors partner with lenders who specialize in home improvement financing. Ask your contractor for recommendations.

Understanding Houston ROI (Return on Investment):

Not all remodeling projects provide equal return when you sell your home. According to Remodeling Magazine's 2025 Cost vs. Value Report for Houston:

Project	Average Cost	Average ROI
Garage Door Replacement	$4,200	94%
Minor Kitchen Remodel	$28,000	72%
Bathroom Remodel	$25,000	68%
Deck Addition (Wood)	$18,000	66%
Major Kitchen Remodel	$75,000	54%

While ROI is important if you're selling soon, focus on improvements that enhance your daily life if you plan to stay in your home long-term.

Conclusion: Make the Smart Choice

Choosing the right general contractor in Houston requires research, due diligence, and patience. Don't rush this decision - your home and your budget depend on it.

Quick Recap - 10 Essential Steps:

1. ✅ Verify Texas TRCC contractor licensing
2. ✅ Confirm general liability and workers' comp insurance
3. ✅ Check online reviews and call references
4. ✅ Get 3+ detailed written estimates
5. ✅ Ensure contractor understands Houston-specific requirements
6. ✅ Ask the 10 essential questions during consultation
7. ✅ Review contract thoroughly before signing
8. ✅ Watch for common contractor scams
9. ✅ Establish fair payment schedule (10% deposit max)
10. ✅ Monitor progress and maintain clear communication

By following these steps, you'll find a qualified, trustworthy Houston general contractor who delivers quality work, transparent pricing, and excellent customer service.

Related Resources:

• What Does a General Contractor Do in Houston TX?
• Houston General Contractor Cost Guide 2025
• Houston General Contractor Services
• Kitchen Remodeling Houston
• Bathroom Remodeling Houston