Run these seven checks before you sign anything.
1. Look up trade licenses with TDLR and TSBPE
Look up every licensed trade on the job before you hire. TDLR licenses electricians and air conditioning contractors. TSBPE, the Texas State Board of Plumbing Examiners, licenses plumbers.
- Electrical and air conditioning: TDLR’s License Data Search finds licenses by number, name, business name, city, county or ZIP code. It lists active licenses only, from data the page said was last updated September 14, 2026.
- Plumbing: TSBPE says to check the license of the company’s Responsible Master Plumber. Its public license search link opens a separate state license database. Master Plumber license numbers begin with M.
Ask for the license number of whoever will do the electrical, plumbing or AC work, and check that the name matches. No result can mean the license is not active, or the name is spelled differently. Arlington’s city guidance also says to check whether the contractor’s ads show a state license number.
For work outside those trades, read what a handyman can legally do in Texas.
2. Confirm city contractor registration
Many DFW cities run their own contractor registration, separate from state licenses. Who must register, and the fee, differ by city.
| City | Who registers, per the city | Annual fee shown | Source (date) |
|---|---|---|---|
| Dallas | General contractors, which the form says include residential, roofing, fence, foundation and pool contractors. Proof of an established place of business is required. The form does not say which permits need it. | $120 | Dallas GC registration form, Oct 2017 |
| Fort Worth | Anyone who pulls a building, mechanical, plumbing or electrical permit. Owners doing work on their own homestead are exempt. Registration lasts one year. | $168.75 for building contractors | City of Fort Worth, no date shown (read Oct 2026) |
| Arlington | General and construction contractors, to get a building permit. The city says to search its registration records and permit list. | Unknown (not on the page) | City of Arlington, Jun 2025 |
| Plano | The fee schedule lists annual registration for general, irrigation and sign contractors. It lists no electrical, mechanical or plumbing fee. | $100 for general contractors | Plano Ordinance 2025-11-4, no date shown |
| McKinney | Licensed electrical, mechanical and plumbing contractors, before a permit is issued. General contractors do not register. They open a portal account instead. | No fee | City of McKinney, no date shown (read Oct 2026) |
The Dallas form dates from 2017, so confirm the fee with the city. For Garland, Irving, Frisco and other cities, call the building inspection office. Ask the contractor which permits the job needs and who will pull them. See whether your project needs a permit.
3. Confirm insurance with the insurer
Ask for a certificate of insurance, then call the insurer or agent named on it. Confirm the policy is active and runs through your job dates. Arlington’s guidance also says to verify current liability insurance that lasts through the project.
The certificate alone proves little. Texas Insurance Code §1811.152 says a certificate “is not a policy of insurance” and does not change the coverage. Under §1811.155, a right to notice of cancellation exists only if you are named in the policy or an endorsement.
Workers’ compensation is optional for most private employers in Texas. Labor Code §406.002 lets employers other than public employers choose whether to carry it, unless another law says otherwise. An employer that opts out must notify TDI’s Division of Workers’ Compensation (§406.004) and tell its employees (§406.005).
To check workers’ comp, use the lookups on TDI’s coverage verification page:
- TXCOMP, run by NCCI, for employers insured through a carrier.
- The Texas Certified Self-Insurers list.
- The Texas Open Data Portal list of registered non-subscribers.
If the lists do not settle it, TDI’s page gives an email contact and says staff reply within one business day. Who pays if an uninsured worker is hurt at your home is a question for your own insurance agent.
4. For a pre-1978 home, check EPA lead-safe certification
If your home was built before 1978, a firm paid to disturb paint must be EPA certified unless the job is very small. EPA says this includes sole proprietors. Texas is not on EPA’s list of states that run their own program, so EPA runs it here.
The rule, 40 CFR Part 745, exempts minor repair and maintenance. Under §745.83, minor repair means 6 square feet or less of painted surface per room inside, or 20 square feet or less outside. Window replacement and demolition of painted surfaces never count as minor. Look up the firm in EPA’s certified-firm search.
5. Read reviews, then call references
Read reviews on more than one site, then call recent customers. The Texas Attorney General suggests asking to speak to satisfied customers. It also says to ask the licensing agency about complaints.
A federal rule limits how businesses get reviews. The FTC rule at 16 CFR Part 465 bars a business from:
- Writing, creating or selling fake reviews (§465.2).
- Buying reviews it knew or should have known were fake (§465.2).
- Offering a reward tied to a positive or negative review (§465.4).
- Posting reviews by its officers or managers without disclosing the tie (§465.5).
- Using threats or intimidation to get reviews removed (§465.7).
A discount offered for a five-star review is a reward tied to sentiment. Treat it as a warning about how the other reviews were gathered.
6. Get a written contract
Put every promise in a written contract before work starts. The Attorney General says not to sign a contract with blanks, and not to let anyone rush you. Arlington’s guidance says to include the contractor’s name, address and license number, a detailed scope, a payment schedule and a materials list. See what a Texas remodeling contract should include.
7. Keep the deposit small and tie payments to progress
Pay a small deposit, never the full price up front. The Attorney General says contractors usually ask for partial payment in advance. It warns that door-to-door scammers ask for full payment in advance. Do not pay in full until the work is done and you have inspected it.
Homestead jobs over $5,000 carry an extra rule. Property Code §162.006 covers a written contract over $5,000 to improve a residential homestead. The contractor must deposit your payments in a construction account at a financial institution. The bank statement must call it a “construction account.”
The contractor must also keep account records for each project (§162.007). Failing to keep the account or its records is a Class A misdemeanor (§162.032). Ask for written proof that the account exists, as the Attorney General advises.
The Attorney General warns: “If your contractor fails to pay the subcontractors and suppliers, YOU are responsible,” even though you did not contract with them directly. Do not sign a certificate of completion until all the work is finished.
After a hailstorm or flood, the warning signs change. Read how to spot a storm damage contractor scam in Texas.