Receivable Strategies

Only certain types of specialty contractors (e.g. HVAC, electrical) need to be licensed in Texas. There are no licensing requirements when it comes to hiring for a construction or major remodeling project.

The Texas Department of Licensing and Regulation (TDLR) regulates HVAC and electrical contractors. You should verify their license status on the TDLR Website before hiring. General contractors and home builders are not licensed so you should do additional research before hiring one.

Although it isn't a regulatory requirement, you can ask your general contractor to provide evidence of workers' compensation and general liability insurance prior to hiring them.

The Texas Department of Licensing Regulation does not require general contractors to carry a surety bond nor is there a state recovery fund.

There is no financial or criminal background check performed on general contractors by the TDLR. The State's Department of Public Safety does maintain a publicly accessible database so you can run your own background check prior to hiring.

The BuildZoom score is based on a number of factors including the contractor's license status, insurance status, verified work history, standing with local consumer interest groups, verified reviews from other BuildZoom users and self-reported feedback from the contractor.

The information on BuildZoom is made available as a public service and should not be considered advertising. We collect client feedback and verify contractors' permitted history with dozens of local building departments in Texas, which saves you time and helps minimize your risk when hiring.

The Texas Attorney General's office recommends getting several bids before hiring a contractor. Do not automatically accept the lowest bid - an abnormally low bid may indicate the contractor made a mistake and is not including the same work quoted by their competitors. We've made the bid collection process extremely simple (and free).