Get Quotes from Top General Contractor in Houston, TX

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

The City of Houston does not require general contractors to have general contractor licenses in order to operate. Only permits, handled by the Houston Permitting Center, are required for every individual job the contractor does. However, they will need a license from the Texas Department of Licensing and Regulation or a licensed subcontractor if you hire them for HVAC, fire sprinkler systems, plumbing, electrical, drilling, or pump installation work.

Keep in mind that general contractors must file an Assumed Name, or DBA, with the relevant County Clerk Office if they offer paid contracting services in Houston under any name other than their own. Filing a DBA or name is a public announcement that they will conduct business under an assumed (or fake) name, not a unique name reservation. Contractors must file an Assumed Name or DBA in each county where they want to conduct physical operations, such as general contracting.

Contractors do not however have to file an Assumed Name if they are already registered with the Texas Secretary of State. General contractors will need to obtain a Federal Employer Identification Number (FEIN) and register an entity or submit an Assumed Name. Online applications are accepted by the Internal Revenue Service, which issues this identification number. Specifically, contractors will need a FEIN:

• If they employ people or intend to do so in the future.
• If they run the company as a partnership or a corporation.
• When filing any of the following tax returns: Alcohol, tobacco, firearms, or employment.
• If they withhold taxes from income paid to a nonresident immigrant, that is not wages.

Since the government of Houston does not mandate general contractor licenses, operating without one is not subject to any legal sanctions. However, employing a general contractor who has demonstrated their capacity to do a quality job will help allay your worries and avoid risky or costly mistakes since inappropriate contracting carried out by unqualified individuals can result in thousands of dollars in damages. Verifying that your chosen general contractor has adhered to all relevant regulatory criteria is crucial in assessing their eligibility for your building project.

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

In Houston, the following factors have a significant impact on how much it will cost to engage a general contractor:

• The type of project
• The scope of the project
• The location of the project
• The cost of the project's necessary permits
• The amount the necessary materials cost
• Conditions and site accessibility
• How urgent the project is
• Site designs and building drawings' quality
• Labor expenses

Before making your final hiring decisions, getting estimates for your projects from at least three general contractors in the city and comparing their costs is always a great idea. The following pricing strategies are frequently used amongst general contractors when calculating their estimates for services:

• Lump Sum Pricing: With this method, the contractor typically provides all of the agreed-upon services for a single price. The contractor usually asks for a higher markup when utilizing this method of cost estimation to account for unforeseen circumstances. This kind of pricing is often used for projects with a defined scope. The main benefit of using the lump sum pricing method is that you have to worry about paying a set amount, not more.
• Cost Plus Pricing: In a cost-plus pricing arrangement, the client is responsible for covering the full cost of the project's materials, labor, and support services in addition to the set percentage of the overall cost the contractor gets for the job. In this case, the general contractor will usually be paid between 10 and 20 percent of the project's total cost. Since the client can save money if the project's final cost is less than anticipated, this pricing technique is suitable for projects with an unclear total scope. The client will be responsible for covering any additional costs if the project ends up costing more than expected.

Note that you should not only hire the contractor who offers the lowest price because some contractors may entice customers with low initial bids before raising costs once the job is underway. Moreover, low prices are commonly offered by dishonest contractors who have no intention of beginning the project. Always consider additional factors, such as the contractor's reputation and level of competence, as well as the types and standards of services they intend to offer at the prices they are requesting.

General Contractors in Houston earn an estimated annual average wage of $75,610. 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:

What Kind of General Contractor Services Do You Offer?

In Houston, work related to construction is typically outsourced to general contractors in the city. Despite this, these contractors' exact services are primarily based on the particular contractor and the project for which they are being hired. But a lot of reliable general contractors in the city regularly offer these fundamental services:

• Provide cost estimates at the start of the project
• Provide required materials for the project
• Give the project all the manpower it requires
• Coordinate with suppliers and vendors
• Ensure that all necessary permits are acquired.
• Monitor the efficiency of the work being done with completion time in mind.
• Ensure that the work complies with all necessary building regulations and safety measures.
• Use specialized subcontractors when necessary
• Control the administrative aspects of the project, including scheduling, financial flow, and labor payments.
• Keep meticulous records of each phase of the project
• Perform actual building, repair, and remodeling work when necessary

It is usually a good idea to inquire about the services a general contractor will provide for your construction project before signing any contracts with them. The general contractor might complete the work with their own team, or you might need to engage a subcontractor to do specific tasks. Be mindful that a general contractor could sometimes need to hire these subcontractors from outside of their team if they lack a person who is qualified to perform the necessary role. However, such agreements should be negotiated before the contract's execution.

Subcontractors are frequently hired to carry out construction-related activities like plumbing, electrical work, HVAC installation, carpentry, and roofing that the general contractor or their workforce may not be directly qualified to carry out. Some key differences exist between general contractors and subcontractors that work on construction projects. These include:

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

Depending on the kind of construction work being done in Houston, you might need to obtain a New Residential Construction Permit, a Residential Addition Permit or some other kind of construction permit from the Houston Permitting Center. Use the Center's permit finder to find a permit specific to your project requirements.

To apply for a New Residential Building Permit, the applicant will need the following:

• Building Permit Application
• Declaration in Support of Application for City of Houston Building Permit
• Complete Set of Plans Uploaded
• Residential Prerequisite Checklist (CE-1301) and the documentation listed on it

To apply online, applicants must first log in or create an iPermits account, then complete the building permit application, pay the plan review fee(s), and wait for an email invitation to upload plans. Note that plan review and inspections are required for this permit. Processing for this permit usually takes 15 business days, and the validity period for the permit is six months.

It should be noted that, depending on the scope or other requirements, the permit may require approval from any or all of the following groups: Mechanical, Electrical, Plumbing, Infrastructure, Forestry, Sprinklers, Fire Marshall, Health, Engineering, and Flood Plain

Similarly, to apply for a Residential Addition Permit, the following documents are necessary:

• Building Permit Application
• Declaration in Support of Application for City of Houston Building Permit
• Grading for Excavation and Fill Worksheet (Form 1094)
• Calculation of Impervious Percentage (Form 1207)
• Complete Set of Plans Uploaded

Like in applying for a New Residential Construction Permit, applicants must log in or create an iPermits account, fill out an application for a building permit, pay plan review fees, and wait for an email invitation from ProjectDox to upload plans. Note that this permit takes ten business days to process and is valid for six months. Based on the scope or other requirements, any or all of the following groups may be required to approve the project: Structural, Planning, Utilities, Stormwater, Traffic, Forestry, and Floodplain.

For more information about permitting for general contractor projects in Houston, contact the Houston Permitting Center at:

Do You Work with Subcontractors?

When hiring your preferred general contractor for your construction project, always inquire if they will be working with subcontractors. Subcontractors are regularly used by general contractors in Houston for a variety of purposes, including:

• Obtaining support with vast or diversified projects
• Improving job flexibility and productivity
• Improving cost-effectiveness.
• For precise and specialized tasks for which they or their staff are neither authorized nor licensed.

The following sectors of building projects are frequently subcontracted by general contractors:

• Appliance installation
• Carpentry
• Drywalling and insulation installation
• Electrical work
• HVAC installations
• Mason work
• Painting
• Plumbing
• Roofing
• Welding
• Window installation

While the general contractor is typically in charge of selecting these subcontractors, you should always take care to ensure that you are not held liable if any problems arise between your general contractor and any subcontractors involved in the project. The most typical causes of these issues are late payments, subpar or unsatisfactory service, and injuries suffered by the subcontractor.

According to Texas law, an employer has no duty to guarantee that a subcontractor does its work safely unless the employer retains some control over the manner in which the contractor conducts the task that generates the danger. So, unless the general contractor or employer gives subcontractors instructions, the law shields the general contractor or employer from liability.

If general contractors, subcontractors, material suppliers, specialty material fabricators, design consultants, and landscapers do not receive payment, they have the ability to file a mechanics lien. In Texas, parties that contracted directly with the property's owner may file a constitutional lien. A constitutional lien has no notice or filing requirements, but claimants must meet certain criteria. It is usually in your best interest to avoid getting into liens in the first place by adopting the following steps:

• Be Diligent with Contractor Hired: Conduct extensive research on any general contractor you intend to hire to ensure they are dependable and professional.
• Be Informed of Any Subcontracting: Request that the general contractor provide you with advance notice of any subcontractor work on your project.
• Obtain a Lien Waiver: Demand lien waivers for all payments. This prevents the subcontractors from encumbering your property with a lien. Lien waivers are another clever way to ensure the general contractor's accountability.
• Only use Bonded Contractors: Examine whether the general contractor has a payment bond. If they do not make timely payments to the subcontractor, a claim may be filed against the bond rather than the contractor.
• Make On-Time Payments: Always pay your general contractor on time.
• Written Contract: Any agreements you make with your general contractor should always be documented.

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

In 2019, there were 123 construction-related fatal injuries in Houston and other Texas municipalities, according to the US Bureau of Labor Statistics. Construction is a hazardous occupation, and construction workers face a number of serious safety hazards, including, but not limited to:

• Electrocutions
• Exposure to harmful chemicals like silica dust and asbestos
• Extreme weather exposure
• Falls from great heights
• Flying debris and falling objects injuries
• Uncomfortable working positions
• Workplace cuts, tears, and lacerations caused by tools and sharp items

General contractors in Houston are not required to carry any insurance to operate. Regardless, it is critical that you check that your contractor has general liability insurance, which protects you against costs associated with an accident or injury that may occur on your project site. It specifically covers non-employee injuries caused by your contractor's work and property damage caused by their business activities or products.

While worker's compensation is also not compulsory in Houston, hiring a general contractor who has this coverage can protect you from financial liability should any of the workers involved in your project get injured. Always bear in mind that it is your responsibility to demand proper insurance coverage before engaging any general contractor. Also, ensure that such insurance is obtained from a Texas insurance carrier who is permitted to market liability insurance.

Hiring a general contractor who does not have the appropriate insurance in Houston puts you in a position of liability for any injuries caused by the contractor and any subcontractors involved in the project. Working with uninsured contractors means you may be held liable for any property damage caused directly or indirectly by these individuals.

In light of this, it is always in your best interest to obtain confirmation of insurance from any Houston general contractor you wish to hire and verify these documents before they begin work on your project. You should contact the contractor's insurance provider to see if their insurance minimum is adequate for the extent of your project and to guarantee that any subcontractors they hire are covered by their insurance. Inquire whether the contractor has professional liability insurance to cover their own mistakes.

For more information on general contracting insurance in Houston, contact the Texas Department of Insurance at (800) 252-3439.

Do You Provide a Warranty for Works Completed?

Warranties are assurances given to people that say the items and services they purchase will function as intended. It also refers to the conditions and circumstances under which repairs or exchanges will be done if the product or service does not function as claimed or intended. In essence, warranties assure the buyer that the service they are about to buy is future-proof. Warranties provided by general contractors often fall into two categories:

• Explicit Warranty: Also known as Express Warranty, this is a written warranty that is usually included in the project proposal or contract. An explicit warranty exists when a statement about the product or service is provided to the buyer, which influences the buyer's choice to acquire the goods or service.
• Implied Warranty: Although this form of warranty is not written, it is nonetheless legally recognized. Implied warranties are common in all types of building projects, whether or not a documented warranty is granted.

These warranties are further classified into the following groups:

• Materials and Equipment Warranty: this covers the materials and items used in the construction by ensuring they are new, fault-free, and will function as planned.
• Vendor Warranty: The manufacturer or vendor of the building's products and appliances typically provides this type of warranty and covers these products.
• Design-Build Warranty: This warranty frequently covers the services of project specialists such as architects and engineers.
• Workmanship Warranty: This warranty ensures that the project's team and subcontractors perform to the highest standards.
• Assurance of Habitability: This warranty guarantees that the completed building or structure is safe to live in and suitable for its intended use. Typically, this warranty is granted for residential structures.
• Call-back Warranty: This type of warranty stipulates a time frame during which the homeowner may contact the contractor to fix any building faults. Depending on the general contractor, it could take up to a year or more.

In conjunction with new residential construction, Texas law currently offers two implied warranties: the implied warranty of good workmanship and the implied warranty of habitability. This means that a homeowner can sue a Texas general contractor if the new home built by this contractor isn't done in a good and workmanlike way (in accordance with industry standards), or if the home isn't fit for habitation and is hazardous or unhygienic.

The warranty duration for workmanship and materials in Texas is one year, while the warranty period for key structural components of the home is ten years. Also, while the default warranty - Implied Warranty - cannot be waived or disclaimed under Texas law, it can be replaced with an explicit warranty, which can also limit the period during which a warranty claim must be brought. If properly designed, such a provision is capable of settling both the extent of the warranty and the applicable limits period by contractual agreement, providing greater confidence to the parties.

Keep in mind that in cases where homeowners provide the design for the construction, contractors cannot legally issue a warranty for the accuracy, appropriateness, sufficiency, or suitability of the provided plans, specifications, or other design documents.

It should be noted that in Houston, an aggrieved homeowner must file a lawsuit for a particular execution of a contract for the conveyance of real estate no later than four years after the day. However, when the parties disagree about a warranty duration, arbitration is frequently used to settle their differences. Arbitration may be a less expensive and time-consuming option than going to court to address these conflicts.

Can You Provide References of Clients Served in Houston?

When looking for a general contractor in Houston, you can ask relatives and close friends who they used for such jobs as you have the need, conduct an online search, or contact recognized trade groups or associations in the city, such as:

• The Associated General Contractor Houston
• The Houston Contractors Association
• The Associated Builders and Contractors Houston
• The National Association of Home Builders
• The Associated General Contractors of America

Before getting into any hiring agreements, you should always acquire references from general contractors in the city, regardless of how you approach them. Requesting references from previous clients with whom your prospective general contractor has worked is a good way to evaluate their professionalism, legitimacy, level of experience, and service performance. Any general contractor who is hesitant to provide references or who cannot provide you with up to three local references should be avoided. This is frequently an indication of poor service delivery and possibly fraudulent activity on the contractor's part.

You should always contact the references provided to obtain first-hand feedback and evaluations on the general contractor and how they conduct their services. It is also a good idea to look up the contractor on third-party review websites like your local Better Business Bureau, Google Reviews, Yelp, and others. Finally, call the Texas Attorney General's Office to find out whether any complaints have been filed against the general contractor and the substance of these concerns.

What Is the Expected Timeline for This Project?

Apart from supporting you in properly managing your construction project, another reason to always choose knowledgeable and experienced general contractors in Houston is that these professionals can usually give you a predicted completion schedule. It should be mentioned that the construction estimation of experienced general contractors is often determined by the following factors:

• The nature and scope of the project
• Season and typical weather conditions
• The availability of building materials, subcontractors, and construction workers
• Changes to the construction scope or plan
• Permits and inspections

For your construction project to be successful, a solid time estimate that encompasses the high points of your project is vital. The following are some of the benefits of having a building project timeline:

• It helps you monitor the project's development and ensure no purposeful delays on the contractor's part.
• It facilitates the efficient assignment and performance of tasks.
• It lowers costs while increasing productivity.
• It gives you a time frame within which to plan for events like relocations, new infants, retirements, and weddings.
• It helps you account for anticipated project delays and allows the contractor to create methods to mitigate these delays.
• Finally, it helps to avoid misunderstandings with your general contractor.