Hiring a licensed general contractor in Texas isn't just smart—it's legally required for residential construction projects over $1,000. Understanding Texas contractor license requirements protects you from scams, ensures quality work, and provides legal recourse if things go wrong.
Whether you're a homeowner researching contractors or a professional seeking licensure, this comprehensive guide covers everything you need to know about Texas general contractor licensing through the Texas Residential Construction Commission (TRCC).
Key Takeaways
- Texas contractors must register with TRCC for projects over $1,000
- Registration requires $300,000 minimum liability insurance
- Contractors must pass a business and law exam
- Annual renewal costs $165 plus continuing education
- Penalties for unlicensed work reach $5,000 per violation
- Houston requires city permits but no separate license
What is TRCC? Understanding Texas Contractor Registration
The Texas Residential Construction Commission (TRCC) is the state agency responsible for regulating residential construction contractors. Created to protect Texas homeowners, TRCC enforces standards, resolves disputes, and maintains the registry of licensed contractors.
TRCC Registration Requirements
Texas general contractors must register with TRCC if they:
- Perform work valued over $1,000 including labor and materials
- Enter into contracts for residential construction (new homes, remodeling, repairs, renovations)
- Handle lead-based paint activities in pre-1978 homes
- Hire subcontractors to perform work on residential projects
Important Note
Texas does not issue traditional "contractor licenses." Instead, the state requires TRCC registration. The terms "license," "registration," and "certification" are often used interchangeably when discussing Texas contractor requirements.
Step-by-Step: How to Get a Texas General Contractor License
Step 1: Meet Eligibility Requirements
Before applying for TRCC registration, ensure you meet these prerequisites:
- Age: Must be at least 18 years old
- Background: No felony convictions in past 5 years (some exceptions apply)
- Insurance: Proof of general liability insurance (minimum $300,000)
- Workers' Comp: If you have employees, proof of workers' compensation coverage
- SSN/EIN: Valid Social Security or Employer Identification Number
Step 2: Obtain Required Insurance
Texas mandates specific insurance coverage for general contractors:
| Insurance Type | Minimum Coverage | Typical Annual Cost |
|---|---|---|
| General Liability | $300,000 | $800 - $2,000 |
| Workers' Compensation | As required by law if employees | Varies by payroll |
| Commercial Auto | Recommended if using vehicles | $1,200 - $3,000 |
| Builder's Risk | Optional but recommended | Project-specific |
Pro Tip: Many contractors carry $1-2 million in general liability coverage to protect against larger claims and meet requirements for commercial projects.
Step 3: Register for the TRCC Exam
The TRCC Business and Law Exam tests your knowledge of:
- Texas construction law and regulations
- Consumer protection statutes
- Contract requirements and best practices
- Lien laws and payment procedures
- Insurance and bonding requirements
- Dispute resolution processes
TRCC Exam Details
- Format: 100 multiple-choice questions
- Time Limit: 2 hours
- Passing Score: 70% (70 correct answers)
- Cost: $100 exam fee
- Retake Policy: Can retake after 30 days if failed
- Study Materials: Available from TRCC and third-party providers
Step 4: Complete the TRCC Application
Submit your application online at www.trcc.texas.gov with:
- Completed application form
- Proof of insurance (certificate of liability insurance)
- Proof of workers' compensation (if applicable)
- Payment of $285 initial registration fee
- Passing TRCC exam score
- Background check authorization
Step 5: Await Processing and Approval
TRCC typically processes applications within 4-6 weeks. You'll receive:
- TRCC registration number
- Certificate of registration
- Wallet card with registration details
- Instructions for annual renewal
Common Application Mistakes
- Incomplete insurance documentation
- Expired insurance certificates
- Incorrect business entity information
- Missing background check authorization
- Payment processing errors
Avoid delays: Double-check all documents before submission and ensure insurance is current and meets minimum requirements.
Texas Contractor License Costs: Complete Breakdown
| Expense | Initial Cost | Annual Cost |
|---|---|---|
| TRCC Registration Fee | $285 | $165 (renewal) |
| TRCC Exam Fee | $100 | — |
| General Liability Insurance | $800 - $2,000 | $800 - $2,000 |
| Workers' Comp (if employees) | Varies | Varies |
| Continuing Education | — | $100 - $300 |
| Background Check | Included in fee | — |
| Study Materials (optional) | $50 - $200 | — |
| TOTAL | $1,235 - $2,585 | $1,065 - $2,465 |
Insurance Requirements for Texas General Contractors
1. General Liability Insurance
Texas requires minimum $300,000 general liability coverage, but most contractors carry $1-2 million to protect against:
- Bodily injury to third parties
- Property damage during construction
- Personal and advertising injury claims
- Medical payments for on-site injuries
2. Workers' Compensation Insurance
Required if you have any employees (even part-time). Covers:
- Medical expenses for work-related injuries
- Lost wages during recovery
- Disability benefits
- Death benefits for families
Independent Contractors Exception
If you work solo or only hire independent contractors (not employees), you may be exempt from workers' compensation requirements. However, you must ensure subcontractors carry their own coverage.
3. Commercial Auto Insurance
Required if you use vehicles for business purposes. Covers:
- Vehicle damage from accidents
- Liability for injuries caused by company vehicles
- Medical payments
- Uninsured/underinsured motorist coverage
4. Builder's Risk Insurance (Recommended)
Protects projects under construction from:
- Fire and wind damage
- Theft and vandalism
- Material damage during transit
- Weather-related losses
How to Verify a Texas Contractor's License
Always verify a contractor's TRCC registration before signing any contract. Here's how:
Method 1: Online Verification (Fastest)
- Visit www.trcc.texas.gov
- Click "Verify a Contractor"
- Enter contractor's TRCC registration number or business name
- Review registration status, expiration date, and disciplinary history
Method 2: Phone Verification
Call TRCC at (512) 305-8800 and provide:
- Contractor's business name
- TRCC registration number (if known)
- City where contractor operates
What to Look For When Verifying
- Active Status: Registration must be current, not expired
- Expiration Date: Ensure registration won't expire during your project
- Insurance Status: Confirm liability insurance is current
- Complaint History: Check for unresolved complaints or disciplinary actions
- Business Name Match: Verify name matches contract and business cards
Penalties for Unlicensed Contractor Work in Texas
Texas takes unlicensed contractor work seriously. Penalties include:
For Contractors
- Civil Penalties: Up to $5,000 per violation
- Criminal Charges: Class A misdemeanor (up to 1 year jail, $4,000 fine)
- Cannot File Liens: Unlicensed contractors lose lien rights
- Cannot Sue for Payment: Courts won't enforce contracts from unlicensed contractors
- Deceptive Trade Practices: Additional penalties up to $10,000 per violation
For Homeowners
Hiring an unlicensed contractor puts you at risk:
- No Insurance Protection: If contractor causes damage, you may be liable
- No Legal Recourse: Limited options if work is substandard
- Code Violations: Unlicensed work may not meet building codes
- Permit Issues: City may require work to be torn out and redone
- Resale Problems: Unpermitted work complicates home sales
Red Flags: Signs of an Unlicensed Contractor
- Refuses to provide TRCC registration number
- Offers "discount for cash" to avoid paper trail
- Cannot provide insurance certificate
- Uses only a cell phone (no business address)
- Pressures you to skip permits
- Requests large upfront payment (over 10%)
- Won't put agreements in writing
- Business name doesn't match TRCC records
Houston-Specific Requirements for General Contractors
While Houston does not require a separate city contractor license beyond TRCC registration, contractors must comply with city regulations:
Houston Permitting Requirements
- All construction work requires permits through Houston Permitting Center
- Contractors must register with the city for permit purposes
- Trade licenses required for electrical, plumbing, and HVAC work
- Inspections mandatory at various construction stages
Houston Building Code Compliance
Houston follows the 2021 International Residential Code (IRC) with local amendments addressing:
- Hurricane wind resistance (150 mph design wind speed)
- Foundation requirements for expansive clay soils
- Flood zone construction standards
- Energy efficiency requirements
Renewing Your Texas Contractor License
TRCC registration must be renewed annually by December 31st. Renewal requires:
- Renewal Fee: $165 payment
- Insurance Proof: Updated certificate of liability insurance
- Continuing Education: Complete required CE hours (if applicable)
- Online Submission: Submit renewal through TRCC website
Renewal Timeline
- 60 days before expiration: TRCC sends renewal notice
- 30 days before expiration: Second reminder sent
- December 31: Registration expires if not renewed
- After expiration: Late fees and penalties apply
- 90 days after expiration: Must reapply as new registration
Late Renewal Penalties
| Days Late | Penalty | Total Cost |
|---|---|---|
| 1-30 days | $50 | $215 |
| 31-60 days | $100 | $265 |
| 61-90 days | $150 | $315 |
| Over 90 days | Must reapply | $285 (new application) |
Continuing Education for Texas Contractors
While Texas does not currently mandate continuing education for TRCC renewal, staying current with industry standards is crucial. Recommended CE topics include:
- Updated building codes and regulations
- New construction technologies and materials
- Safety and OSHA compliance
- Business management and contract law
- Customer service and communication
Why Choose Tell Projects as Your Licensed Houston Contractor
At Tell Projects, we maintain full TRCC registration and exceed minimum requirements to protect our clients:
TRCC Registered
Active registration with Texas Residential Construction Commission
$2 Million Insurance
General liability coverage far exceeds state minimums
Workers' Comp
Full coverage for all employees and subcontractors
City Permits
All work properly permitted through Houston Permitting Center
Our commitment to compliance means:
- ✓ You're protected if anything goes wrong
- ✓ All work meets or exceeds code requirements
- ✓ Permits pulled and inspections passed
- ✓ No surprises or legal issues at resale
- ✓ Professional accountability from start to finish
Frequently Asked Questions
Do general contractors need a license in Texas?
Yes, general contractors in Texas must register with the Texas Residential Construction Commission (TRCC) if they perform work over $1,000 or handle lead-based paint activities. Registration requires proof of insurance and successful completion of a business and law exam.
How much does a Texas general contractor license cost?
TRCC registration costs $285 for the initial application, plus $100 for the exam. Annual renewal is $165. Additional costs include liability insurance ($800-$2,000/year), workers' compensation insurance (varies by payroll), and continuing education courses ($100-$300).
How do I verify a Texas contractor's license?
Verify a Texas contractor's license at www.trcc.texas.gov using their TRCC registration number or business name. The database shows registration status, expiration date, and any complaints or disciplinary actions. Always verify before signing a contract.
What insurance does a Texas general contractor need?
Texas general contractors must carry minimum $300,000 general liability insurance and workers' compensation if they have employees. Many contractors carry $1-2 million in liability coverage. Commercial auto insurance is also required if using company vehicles.
Can I hire an unlicensed contractor in Texas?
No, hiring an unlicensed contractor in Texas for projects over $1,000 is illegal and risky. Unlicensed contractors cannot legally file liens, may not be insured, and homeowners have limited recourse if work is substandard or left incomplete.
How long does it take to get a Texas contractor license?
Processing a Texas TRCC registration typically takes 4-6 weeks after passing the exam. The exam can be scheduled within 1-2 weeks of application. Total timeline from application to active registration is usually 6-8 weeks.
What happens if a contractor works without a Texas license?
Contractors working without TRCC registration face civil penalties up to $5,000 per violation, cannot legally file mechanics' liens, and may face criminal charges. They also cannot sue to collect payment for work performed without proper registration.
Do Houston contractors need a separate city license?
Houston does not require a separate contractor license beyond TRCC registration. However, all work requires city permits through the Houston Permitting Center, and contractors must register with the city for permit purposes.
What is the TRCC exam like for Texas contractors?
The TRCC exam covers Texas construction law, consumer protection, business practices, and contracts. It consists of 100 multiple-choice questions with a 2-hour time limit. Passing score is 70%. Study materials are available from TRCC and third-party providers.
Does a Texas contractor license expire?
Yes, TRCC registration must be renewed annually by December 31st. Renewal requires proof of continuing insurance coverage and payment of the $165 renewal fee. Late renewals incur additional penalties.
Get Started with a Licensed Houston General Contractor
Ready to work with a fully licensed, insured, and experienced general contractor in Houston? Tell Projects has the credentials, expertise, and commitment to quality you deserve.
Schedule Your Free Consultation
Call (832) 591-7991 or fill out our contact form to discuss your project. We'll verify our credentials, explain our process, and provide a detailed estimate—all at no cost to you.