Get Quotes from Top General Contractor in Austin, TX

Questions to Ask Before Hiring a General Contractor in Austin

Construction is a particularly dangerous industry, and construction accidents account for about 20 percent of all work-related fatal injuries across the United States every year. However, for a fee less than 20 percent of your project's total cost or an average wage of $33.29 per hour, a professional Austin general contractor can help supervise your new construction or renovation project safely and

  • Identify potential job site hazards and mitigate the occurrence of construction accidents during your project
  • Save you time and money
  • Provide you with access to high-quality construction materials and experienced subcontractors
  • Ensure that your project conforms to relevant local codes and regulations
  • Make sure the project is executed within a stipulated timeline

However, before hiring any general contractor in Austin, always solicit answers to the following questions to make sure they are qualified to manage your available resources effectively, properly insured, and also adhere to the city's building codes and regulations:

Are You Licensed to Practice as a General Contractor in Austin?

General contractors do not need local or state-issued occupational licenses to operate in Austin. Nevertheless, these contractors are required to register with the city's Development Services Department (DSD) before they can obtain permits for building and renovation projects. Contractors who do not complete this registration process and subsequently fail to obtain required permits for projects that they handle can face fines of up to $2,000 and other city-imposed sanctions.

The Austin general contractor registration process can be initiated by accessing the DSD's Service Center Request Form online, selecting the "Register or Update Registration" option, and following subsequent prompts and instructions. Note that registrants are typically required to provide certain documentation, which includes:

Queries related to the DSD's general contractor registration process can be directed to the department online by calling 311 or (512) 974-2000 for callers outside Austin or in person at:

City of Austin Permitting and Development Center
6310 Wilhelmina Delco Drive
Austin, TX 78752

You can also verify if your intended general contractor has properly completed this registration process and is, thus, eligible to pull all necessary permits for your project by contacting the DSD via the contact information provided above.

Since general contractors are not mandated to hold occupational licenses before plying their trade in Austin, it is a good idea to look into other qualifications they may possess to assess whether or not they are a good fit for your intended project. A common way to do this is by checking for membership with respected trade associations and any certifications they may have obtained from these associations. Examples of these trade associations include:

  • The Texas Construction Association
  • The Home Builders Association of Greater Austin
  • The Associated General Contractors of America – Austin Chapter
  • The Greater Austin Contractors and Engineers Association
  • The Texas Association of Builders
  • The TEXO Association

These associations typically demand high levels of professionalism from their member contractors while also providing them with resources and training opportunities that are not as easily available to non-member contractors. As a result, general contractors who belong to respected trade associations or who have received certifications from these associations typically possess more skills and experience than their counterparts and usually offer more satisfactory services.

Bear in mind that you should always verify any claims from your preferred general contractors that they belong to or have been certified by any trade association organizations by asking for documentation of this and confirming it with the relevant organization.

How Much Do You Charge Compared to Other General Contractors in the City?

The cost of hiring a general contractor in Austin is influenced by a number of factors, some of which include:

  • The type of project that you wish to undertake
  • The scope of the project
  • The cost of construction materials and labor
  • The location of the project within the city
  • Project site conditions and accessibility
  • The quality of available construction plans, drawings, and specifications
  • The urgency of the project
  • The cost of permits, inspections, and other pertinent regulatory requirements

Many professional general contractors in Austin commonly use one of the following pricing models when coming up with bids or quotes for projects:

  • Lump Sum Pricing: under the lump sum pricing model, the general contractor offers a fixed price for all agreed-upon services related to the project. However, the contractor also typically includes a higher markup when calculating the cost estimates for these services to cover the cost of unforeseen circumstances that may come up during the project. The lump sum pricing model is usually preferred for building and renovation projects that have a clear scope and a well-defined timeline.
  • Cost Plus Pricing: under the cost-plus pricing model, the general contractor provides a bid that includes an estimate for the actual cost of the project's construction materials, labor fees, and other necessary support, plus a predetermined percentage of this total cost, which will be their fee. While this percentage usually falls between 10 – 20 percent, in some cases, the general contractor may charge as much as 25 percent of the estimated total cost of your project. The cost-plus pricing model is preferable for projects with an ambiguous overall scope and no clearly defined timeline, as it allows the client to save money if the project's actual cost is less than anticipated. However, if the project costs more than anticipated, the client will also have to cover these additional expenses.

You should consider getting and comparing quotes for your building or renovation project from at least three different general contractors in the city before selecting one best suited for the job. Bear in mind that you should not just hire the general contractor with the lowest quotes, as some dishonest contractors lure clients in with low first bids to raise prices once the job gets underway.

Always request an explanation for quotes that are noticeably lower or higher than the others, and be wary if the general contractor cannot justify these prices. Before making your final hiring decision, you should also consider other criteria, such as the general contractor's level of experience, local reputation, and specialization.

General Contractors in Austin earn an estimated annual average wage of $69,240. The list below compares the average hourly wage of these contractors with those of general contractors in other parts of Texas and other locations across the United States:

Austin General Contractors Average Hourly Wage
$33.29
Houston General Contractors Average Hourly Wage
$36.35
San Antonio General Contractors Average Hourly Wage
$32.37
Dallas General Contractors Average Hourly Wage
$33.05
El Paso General Contractors Average Hourly Wage
$26.32
New York City General Contractors Average Hourly Wage
$46.94
Los Angeles General Contractors Average Hourly Wage
$41.51
Chicago General Contractors Average Hourly Wage
$43.15
PhoenixGeneral Contractors Average Hourly Wage
$34.77
Washington D.C.General Contractors Average Hourly Wage
$38.01
Source: U.S. Bureau of Labor Statistics

What Kind of General Contractor Services Do You Offer?

Professional general contractors in Austin typically offer several types of services to their clients, ranging from managing and overseeing the laborers involved in the project to coordinating construction material suppliers and performing actual construction work on the project. While the nature and scope of services offered by these contractors vary by client and project and also from contractor to contractor, you can usually expect your professional general contractor to perform the following duties when you retain their services:

  • Coming up with a practical timeline for the project
  • Preparing cost estimates for the project
  • Making provisions for necessary construction materials and labor needed for the project
  • Coordinating with materials' suppliers and vendors
  • Obtaining all required permits for the project and ensuring that relevant safety standards and regulations are followed
  • Overseeing the quality of work being done
  • Ensuring that project milestones are met on time
  • Hiring skilled subcontractors to handle portions of the project where necessary
  • Handling administrative aspects of the project, such as cash flow and payments, work schedules, and other similar activities
  • Ensuring that proper records are maintained
  • Performing actual building and renovation work where necessary

Bear in mind that you should always verify the exact types of services your general contractor offers before finalizing any hiring arrangements with them. Also, depending on the nature and scope of your project, the hiring of subcontractors outside the general contractor's in-house crew may be required for specialized tasks like:

  • Roofing
  • Plumbing
  • Electrical work
  • Carpentry
  • Painting
  • HVAC installation
  • Welding

While you can handle hiring these subcontractors yourself, it is always a good idea to let your general contractor do so, as they usually have better access to skilled, experienced, and reputable subcontractors in the city than most homeowners do. This also ensures that you maintain a single point of contact for the administrative parts of your project and insulates you from liabilities if the subcontractors perform subpar work.

The table below provides certain key differences between general contractors and subcontractors that work on building and renovation projects in Austin:

General Contractors Subcontractors
Usually hired by the project owner and interact directly with them Usually hired by general contractors and do not interact directly with the project owner
Oversee the entire project and may perform general building and renovation activities Work on specific aspects or portions of the project
Do not usually require specialized knowledge May require specialized knowledge and expertise
Receive payment directly from the project owner Payment is usually received through a general contractor

Will You Get the Necessary Permits as Required per the City Code?

Per local ordinances, you must obtain a permit from the Austin Development Services Department (DSD) before constructing, erecting, improving, repairing, converting, renovating, or demolishing any building or structure within the city's jurisdiction. However, exemptions are typically made for certain types of building and renovation work. These permit-exempted works include, but are not limited to:

  • Painting, papering, tiling, carpeting, cabinets, countertops, and similar work
  • The construction of prefabricated swimming pools on residential property that are less than 24 inches deep
  • The construction of fences that do not exceed a height of eight feet for residential projects and seven feet for commercial projects provided that these fences are not located within flood hazard areas.
  • The construction of one-story detached accessory structures that do not exceed 200 square feet of floor area and 15 feet in height for residential projects or 120 feet of floor area for commercial projects and are not located in flood hazard areas. Note that residential one-story detached accessory structures must not create a dwelling and must also contain no plumbing.
  • Roof decking, foundation repair, and floor decking repair that does not exceed 128 feet and is done on residential property
  • Removing electrical wiring in buildings
  • Installing or replacing overhead garage doors in residential buildings and structures

It is important to note that all permit-exempt works are still expected to comply with the city's building codes and regulations and other applicable local ordinances. Performing building and renovation work in Austin without obtaining the required permits for the job is considered a misdemeanor offense and is punishable by a fine of up to $2,000. On the other hand, obtaining all necessary permits before commencing your project comes with certain benefits, which include:

  • It ensures that the work to be done will conform to all relevant codes and regulations.
  • It helps you avoid locally-issued stop-work orders, teardowns of already-done work, and other city-imposed sanctions.
  • It ensures that your insurance policy is not violated
  • It helps protect your property value
  • It makes it easier to sell your property

The DSD offers several permit processes, which depend on the planned work's nature and scope. These processes include:

  • Residential Plan Review: this is required for the construction of single-family, duplex, or two-family houses and accessory buildings on one lot, as well as the renovation, interior remodeling, and demolition of these types of structures
  • Commercial Plan Review: this is required for work involving commercial and multi-family buildings and structures
  • Expedited Plan Review: this premium service offers interested parties the opportunity to accelerate the permit review and issuance process by holding a review session with a full team of experienced DSD plan reviewers and the applicant's design team.

Individuals who wish to obtain permits in Austin are typically required to have an Austin Build + Connect (AB+C) account, which can be used for submitting permit applications, processing necessary payments, scheduling inspections, and uploading any relevant required documents. To this end, the DSD provides access to a user manual that interested parties can utilize to get information on creating an AB+C account and navigating the platform. Once this account has been created, required permits can be obtained from the DSD through the following steps:

  • Requesting a Preliminary Plan Review Meeting (PPR) with the DSD to discuss preliminary design or construction issues. Note that this step is usually done at the discretion of the project owner or an authorized agent of the owner. However, applicants who wish to request this meeting must do so before submitting any construction plans to the DSD for review.
  • Determine all required documents needed for the project and prepare these documents.
  • Apply for the required permit online via either a Residential Intake Request Form or a Commercial Intake Request Form.

Once the submitted intake request forms are accepted for review, applicants are sent an invoice and a link to upload all required site plans, project drawings, and other necessary documents outlined within the application. The invoice can be paid via the (AB+C) platform, and the review only starts once this has been done.

After the completion of the review, the applicant will be sent an email asking them to activate their requested permits via the DSD's Service Center Request Form. At this point, the building or renovation project can commence. Note that these projects are subject to inspections by DSD officials to ensure compliance with pertinent building codes and regulations.

Applicants who are unsure about the specific requirements for their projects or the documents that may be needed for their applications are advised to schedule an appointment with the DSD's Permitting and Development Center to get proper assistance before submitting their permit applications.

Additional information on the permitting process for building and home renovation projects in Austin can also be directed to the DSD by calling 311 or (512) 974-2000 for callers outside the city, online, or in person at:

City of Austin Permitting and Development Center
6310 Wilhelmina Delco Drive
Austin, TX 78752

Do You Work with Subcontractors?

General contractors in Austin often hire subcontractors for several reasons, such as:

  • To increase the cost efficiency of the project
  • To increase job productivity and flexibility
  • To get assistance on large or complex projects
  • To perform tasks that require specialized knowledge and experience

Common tasks that require the input of subcontractors include:

  • Roofing
  • Electrical work
  • Plumbing
  • Welding
  • HVAC installation
  • Painting
  • Door and window installation
  • Carpentry
  • Insulation installation

When hiring general contractors in the city, it is vital to find out if they will be outsourcing any parts of your project to subcontractors and ensure that they keep you informed on the activities of these subcontractors. This helps you avoid any liabilities arising from disputes between the general contractor and the subcontractors. The most common causes of disputes between general contractors and subcontractors are:

  • Unsatisfactory or less-than-optimal work
  • Late payments

Per the Texas Prompt Payment Act, project owners must pay their general contractors no later than 35 days after receiving an invoice for said payment. The general contractor, in turn, must pay subcontractors no later than seven days after receiving payment from the project owner. While this law provides you a measure of protection in situations where you have made appropriate payments to your general contractor, you can still face financial and legal liability if this contractor fails to remit the appropriate payment to any subcontractors or material suppliers that have placed a lien on your property.

According to Chapter 53 of the Texas Property Code, subcontractors and material suppliers who do not receive payment for their services on building and renovation projects in Austin can file liens on the property in question and legally claim it.

Dealing with lien-related matters is an unpleasant, time-consuming, and often expensive process that is best avoided completely. To stay out of situations that could lead to a lien being placed on your property, always do the following:

  • Proper research and due diligence: ensure that you do your due diligence on any general contractor that you intend to hire and make sure that they have a reputation for paying subcontractors, materials suppliers, and laborers on time
  • Preliminary notices: make sure that your general contractor informs you of any work that is to be handled by subcontractors
  • Obtain lien waivers: insist on getting a lien waiver for every payment that you make. This ensures that you do not end up with a lien placed on your property and is also an effective way to keep your general contractor accountable.
  • Timely payments: make sure that you pay your general contractor promptly
  • Utilize contractor bonds: ensure that your general contractor carries a payment bond that can be filed against if they fail to make appropriate payments to subcontractors and materials suppliers
  • Written contracts: always get a written contract for the project that clearly details any agreements reached between you and the general contractor

Do You Carry the Necessary Insurance Policy for General Contractors in the City?

The insurance status of your general contractor is a vital factor to consider when searching for suitable contractors to oversee your building and renovation projects. According to data published by the Texas Department of Insurance, the construction industry accounted for 27 percent of all occupational fatalities that occurred in Texas in 2020 – seven percent more than the total percentage of construction-related fatalities recorded for the previous year. Injuries in this industry can be attributed to four main causes, namely:

  • Falls: this is the most common construction hazard, and it includes falls from heights as well as slips and trips from the same level
  • Struck-by injuries: these include injuries caused by flying, falling, swinging, and rolling objects on the project site
  • Electrocution: these include injuries caused by exposed energy sources, overhead power lines, and improper use of extension cords at the project site
  • Caught-in or between injuries: these include cave-ins and injuries that occur when workers and subcontractors are crushed between objects at the project site

Failing to confirm your contractor's insurance status before hiring them makes you liable for any injuries and property damage that occur during your project. As such, even though general contractors that operate in Austin are not mandated to comply with any insurance requirements, you should always make sure that the one you hire carries the following types of insurance:

  • General Liability Insurance: this covers injuries and property damage
  • Workers' Compensation Insurance: this provides benefits and compensation to any laborers and subcontractors hired by the general contractor who get injured on the job
  • Professional Liability Insurance: this covers any damages caused by negligence on the part of the general contractor

Always request proof of insurance coverage from your preferred general contractor and contact their insurance provider to authenticate this proof before concluding hiring arrangements with them. You should also ensure that the general contractor's available insurance coverage will be enough for the scope of your project.

Do You Provide a Warranty for Works Completed?

Warranties refer to promises, guarantees, or assurances that a purchased product or rendered service will do what it is intended to do. General contractors typically issue two types of warranties, namely:

  • Explicit warranties: these are written warranties that are usually included in the quote or contract offered by the general contractor
  • Implied warranties: these are non-written warranties that are recognized by law and occur in every type of building or renovation project, regardless of whether or not an explicit warranty is eventually issued

These warranties can be further sub-categorized into the following:

  • Material and Equipment Warranty: this assures that any materials and items used for the building or renovation are new, defect-free, and will perform as required
  • Call-back Warranty: this is usually a written warranty that specifies a timeframe during which the general contractor can be called back to resolve any defects discovered in the building or renovation project
  • Vendor Warranty: this refers to warranties issued by the manufacturers or vendors of products and appliances used for the building or renovation
  • Design-build Warranty: this warranty is commonly issued by design professionals like architects and engineers to guarantee the services that they render in relation to the project
  • Workmanship Warranty: this warranty guarantees that the work done by laborers and subcontractors involved in the building or renovation project is optimal and of a high standard
  • Warranty of Habitability: this warranty is usually issued for residential projects, and it assures the client that the building or structure is not only safe to occupy but will also be suited for its intended purpose

You should always find out the types of warranties that your intended general contractors offer when making hiring arrangements with them, and do not hire any contractor that does not offer explicit warranties. Note that while the specific terms and conditions of these warranties typically vary by contractor, Chapter 27 of the Texas Property Code stipulates that general contractors cannot be held liable for the following types of damages in residential construction:

  • Damages caused by any party, excluding the general contractor, their employees, or subcontractors that they hire
  • Damages caused by the homeowner's failure to take reasonable action to maintain the residence, mitigate noticed damages, normal wear, tear, or deterioration, and normal shrinkage due to drying or settlement of construction components
  • Damages caused by the general contractor's reliance on written information obtained from official government records provided that the contractor did not or could not have reasonably known that this information was inaccurate.

Always do your best to review any warranty you are offered so you do not end up voiding it. In situations where a breach of warranty occurs, Chapter 16 of the Texas Civil Practice and Remedies Code stipulates that you must file a claim against the general contractor no later than ten years after the project was substantially completed. If a written claim is submitted during this period, then the statute of limitations may be extended by two years. Likewise, if an injury caused by the defect occurs during the 10th year, the claimant may also sue up to two years after the date of accrual.

Can You Provide References of Clients Served in Austin?

You can get recommendations to general contractors in Austin by asking friends and relatives who have finished similar jobs, conducting searches online, or contacting respected trade associations like:

  • The Austin Chapter of the Associated General Contractors of America
  • The Home Builders Association of Greater Austin
  • The Texas Construction Association
  • The Texas Association of Builders

Nevertheless, no matter how you contact general contractors in the city, always ask them to provide references of past clients they have served and contact these references to get reviews on the contractor in question. This is an effective way to gauge the contractor's competence, legitimacy, and service delivery.

Be wary of general contractors who cannot provide you with this information or seem hesitant to do so, as this is usually an indication of poor service delivery and even fraudulent behavior on their part. It is also a good idea to look up the general contractor on platforms like the Better Business Bureau, Yelp, Google Review, and similar websites that publish reviews and testimonials on general contractors that operate in the Austin area.

What Is the Expected Timeline for This Project?

Several factors affect the timeline of building and renovation projects in Austin, and these include;

  • The nature and scope of the project
  • The time of year
  • Prevalent weather conditions
  • Availability of resources, including construction materials, experienced subcontractors, and labor
  • Regulatory requirements
  • Post-commencement changes to the scope of the project

Hiring a professional general contractor to manage your building and renovation project not only ensures that it is handled safely and on time but also provides you with assurances that it will be completed successfully. This, in turn, affords you several benefits, like:

  • Easier project monitoring
  • Better resource control and task allocation
  • Increased work efficiency
  • Better planning towards events like new births, retirements, relocations, weddings, and visits from friends and relatives
  • Reduced misunderstandings with the general contractor
  • Identification and minimization of potential project delays

How to File a Complaint Against a Bad General Contractor in the City

Complaints against bad general contractors in Austin can be filed locally with the Travis County Attorney's Office and also at the state level with the Texas Attorney General's Office.

Every year, the Texas Attorney General's Office handles more than 30,000 complaints concerning consumer-related matters, including building and renovation scams and fraud. Some common building and renovation scams include:

  • The contractor asks you to sign a contract before providing a written estimate for the project
  • The contractor asks you to sign a contract with blank sections or one that contains malicious clauses
  • The contractor requests a large down payment or full payment upfront
  • The contractor exaggerates the costs of construction materials and services
  • The contractor uses substandard materials for the project despite charging premium prices for these materials
  • The contractor connives with a third party to provide financing for the project, usually at cutthroat rates
  • The contractors deliberately failed to obtain all required permits for the project

In September 2020, local news house KVUE reported that an Austin contractor had fled after failing to complete construction work for several families in the area despite collecting hundreds of thousands of dollars for these projects.

Similarly, in March 2022, FOX 7 Austin published an alert warning residents of the city to be wary of scammers who capitalize on desperate homeowners looking to renovate their homes in the wake of tornadoes and other natural disasters in the area. The following tips can help ensure that you hire legitimate general contractors in Austin:

  • Always ask for references and check them.
  • Make sure that your contractor has registered with the city's Development Services Department by calling 311 or (512) 974-2000 for callers outside the city
  • Look up the contractor online via platforms like the Better Business Bureau, Google Review, Yelp, and other similar platforms
  • Make sure that your contractor is properly insured and also has a permanent physical place of business

Other tips to help you avoid building and renovation scams in the city include:

Do's Don'ts
Get referrals to general contractors in the city from trusted sources like relatives, friends, and online directories provided by reputable organizations like the NAHB, the AGC, and the BBB. Do not hire unsolicited contractors.
Ask for and compare quotes and estimates from at least three different general contractors before hiring one for the project Do not automatically hire the general contractor that submits the lowest quote or estimate for the project
Get a well-detailed contract for the project before any work starts. Ensure that it includes a timeline for the project, the types of materials and equipment to be used, its total cost, and warranty information Do not hire general contractors who cannot provide you with up to three local and verifiable references
Review contracts, warranties, and other written documents that you are issued thoroughly before signing them Do not make full payment upfront and limit advance payment to one-third of the total cost of the project, which should be made payable when the project materials arrive
Verify that the project has been completed satisfactorily and per the terms of your contract before making final payments Do not let payments for the project get ahead of its progress and avoid cash transactions
Make sure that all subcontractors, suppliers, vendors, and workers involved in the project are paid Do not let the contractor arrange financing for the project
Request lien waivers from the general contractor and all subcontractors involved in the project Do not pull permits for the project by yourself. Permits should always be obtained by the general contractor or subcontractors where necessary

You can file complaints concerning building and renovation scams and other contractor-related matters with the Travis County Attorney's Office via email, by calling (512) 854-1289, or by contacting the office in person at:

314 West 11th Street
Room 300
Austin, TX 78701

You can also file these complaints at the state level with the Consumer Protection Division of the Texas Attorney General's Office by calling (800) 621-0508, online, or by mailing a completed consumer complaint form to:

Office of the Attorney General
Consumer Protection Division
P.O. Box 12548
Austin, TX 78711-2548

Note that while these agencies might assist you in recovering damages for the general contractor's actions, there is no guarantee of this outcome. Nevertheless, you can file a lawsuit against the contractor with an appropriate precinct of the Travis County Justices of the Peace Courts to seek monetary compensation.

However, you should always consult with a licensed attorney before taking this step. You can get referrals to attorneys who are qualified to practice in the Austin area through the Lawyer Referral and Information Service provided by the State Bar of Texas.