How to Choose a Licensed Contractor in Austin TX (10 Things to Check)

Texas licenses contractors through the Texas Department of Licensing and Regulation (TDLR). You can verify any contractor at tdlr.texas.gov in about 30 seconds — just search by name or license number. A valid license means the contractor has passed required exams and carries active registration.

For electrical and plumbing work, look for the specific sub-contractor licenses (master electrician, master plumber). General contractors working in Austin should hold a General Contractor license for any project over $50,000.

Ask for a Certificate of Insurance showing general liability (minimum $1M per occurrence) and workers' compensation coverage. Have it emailed directly from their insurance broker — not just a photo of a certificate the contractor hands you.

If a worker is injured on your property and the contractor has no workers' comp, the claim can come back to your homeowner's insurance. This is not theoretical — it happens in Austin regularly.

Always get at least three written estimates for any project over $5,000. Written estimates — not verbal, not 'ballpark' — with specific line items. This gives you price context and reveals scope differences between contractors.

The cheapest estimate isn't the best value if it excludes permit fees, has thin allowances for materials, or lacks a clear scope. Compare what's included, not just the total.

Legitimate contractors ask for a deposit (typically 25–30% to mobilize), progress payments tied to project milestones, and a final payment upon completion — usually 10–15% held until punch list is done.

Red flag: any contractor who asks for more than 50% upfront, or who wants full payment before starting. This structure removes your leverage to get punch list items finished.

Get the payment schedule in writing as part of your contract.

A solid remodeling contract covers: detailed scope of work, materials specified by brand/model where possible, project start and completion dates, payment schedule, change order process, warranty terms, and permit responsibility.

If a contractor offers only a one-page proposal with a total price, ask for more detail before signing. Vague contracts lead to scope disputes and budget surprises.

ATX Construction provides detailed written contracts for all projects.

**6. Get a written timeline.** Project start date, major milestones, and estimated completion — in writing. 'A few weeks' is not a timeline.

**7. Ask for references.** Any contractor should be able to provide 2–3 recent clients who'll talk to you. Call them. Ask about communication, timeline adherence, and how problems were handled.

**8. Confirm permit responsibility.** Ask directly: 'Are permits required for this project, and who is responsible for pulling them?' The contractor should be responsible for permits on any project they manage.

**9. Understand the change order process.** Scope changes happen. A professional contractor documents every change in a written change order with price and timeline impact before proceeding — not after.

**10. Ask about cleanup and protection.** Daily cleanup, dust protection, and post-project removal of materials should be standard. Ask what's included.