Texas Construction Laws Every General Contractor Should Know
- Nate Jones
- 7 days ago
- 2 min read
If you’re a general contractor working in Texas, understanding construction law is essential for avoiding fines, lawsuits, and project delays—especially in busy cities like Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso.
This guide outlines the core laws that affect Texas contractors and highlights the insurance coverage you need to stay protected on every job.
1. Contractor Licensing Requirements in Texas
Texas does not require a statewide general contractor license, but several trades do require state licensing:
Electrical (Texas Department of Licensing & Regulation)
Plumbing (Texas State Board of Plumbing Examiners)
HVAC (TDLR)
Cities like Dallas, Houston, and San Antonio may also require contractor registration, business permits, or project-specific permits.
Read More: Texas Department of Licensing & Regulation
2. Texas Prompt Payment Act
General contractors must follow the Texas Prompt Payment Act, requiring owners, contractors, and subs to make timely payments after invoices are approved.
Key points:
Owners must pay contractors within 35 days
Contractors must pay subcontractors within 7 days
Late payments may incur interest penalties
3. Texas Mechanic’s Lien Laws
Mechanic’s liens protect contractors and subs when clients refuse to pay.
Important rules:
Strict deadlines for sending notices
Deadlines vary for residential and commercial projects
Filing errors can invalidate your lien
Read More:
4. Construction Contract Requirements
Texas strongly encourages written construction contracts.
A good contract includes:
Scope of work
Payment schedule
Change order terms
Warranty details
Insurance requirements
Termination clauses
This protects both contractors and homeowners, especially in large projects across cities like Austin, Fort Worth, and El Paso.
5. OSHA Safety Regulations
Even though OSHA is federal, its rules apply to all Texas job sites.
Contractors must follow:
Fall protection standards
PPE requirements
Training documentation
Jobsite hazard controls
OSHA violations can result in major fines and legal exposure.
6. Texas Home Solicitation Act
If you sign contracts at a homeowner’s residence, you must comply with the 3-day right to cancel rule—important for residential contractors in Houston and Dallas.
7. Insurance Requirements for Texas Contractors
Insurance compliance is a major part of Texas construction law. Operating without proper coverage can lead to lawsuits, financial loss, or denied contracts.
Five Necessary Insurances
To get fast, affordable contractor insurance that meets Texas requirements, request a quote from One Hampton Insurance—they specialize in protecting Texas construction businesses.
Final Thoughts
Texas construction laws can be complex, especially when operating in major markets like Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso. By understanding licensing rules, contracts, liens, payment laws, and insurance requirements, you’ll protect your business and build trust with clients.
Before starting your next project, make sure you’re fully insured.
Contact One Hampton Insurance for a quick and reliable contractor insurance quote.
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