How to Become a Licensed Contractor in Texas – A Few Steps

If you have decided to be a licensed contractor in Texas, it is high time you started the process. US economy is one of the strongest economies which is always on the rise. So, every year many more people want to construct their new houses and repairing services for the house is also a dire necessity.

To become a constructor in Texas you have to have a contractor’s license from the “Texas Department of Licensing and Regulation” authority. I think you already know that having a license is a matter of several steps of processing. So, get ready.

Plan your business and select the right track

There are many types of contractors in Texas. So, you have to first select which category suits you. There are some categories such as housebuilders, handymen carpenters, etc. don’t need to get licensed. To know in detail you should visit the Texas Department of Licensing and Regulation’s website

The following types of contractor need to get licensed

How to become a Contractor in Texas
  • Plumbers
  • Specialists on the installation of pumps
  • Electricians 
  • HVAC contractors
  • Specialists on drilling well
  • Fire system and Refrigeration specialists 
  • Interior designer 
  • Landscapers 
  • Architects 
  • Surveyors
  • Engineers (civil)

After deciding your area of work, you will have to move forward to get your license. You have to bear in mind that you may need another license from your local authority besides the license of state authority. You have to enquire that about where you should issue the license. Sometimes, you have to be registered by other authorities besides the state authority.

Necessary documents and experience for getting contractor license in Texas

You have to ensure the following compliance and relevant experience –

  • You need relevant work experience for at least two years
  • You need to submit a ‘letter of reference’ from contractors who are running their businesses and they have a valid license for at least two years from the licensing authority of Texas
  • The authority who will recommend in favor of you they should have a valid license for at least two years
  • You need to submit a reference from your bank.
  • You need to submit a reference from your previous clients for whom you had provided service earlier
  • You may also need professional qualifications related to constructions. The certificate should be gained from an accredited educational institution which will include a state exam 

Primarily you have to apply through TDLR. After notifying your application, experience document and references, they will arrange an examination for you.

There will be options for you a couple of times if you can’t achieve it in a single attempt. Your exam fee may vary from $ 100 to $ 200 for each sitting.

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Valid insurance coverage is a must

After completion of the above criteria, all the contractors and subcontractors in Texas will need to hold valid insurance coverage for their activities. Insurance must cover-

  • Employers liability
  • Commercial and general liability
  • Workers compensation
  • For any specific and special contract, potential insurance coverage may be required

Secure your Contractor license bond from the legal authority of Texas

Before you start your own business as a contractor in Texas you have to gain the Texas contractor license bond

To ensure that you are officially verified, you need to get your license as a builder in Texas. It will also help you to carry out your business to the desired and proven track that you want to work. It will also give your clients and customer some sort of enthusiasm that you are the right person to deal with for a professional job.

Finally, keep in mind that the price of the bond of a contractor will depend on your credit ratings. For good credit ratings you may get a concession of 1% to 3% on the total bond amount.

Lower credit rating holder may be incurred with 5% to 15% of the bond amount.

Completion of all of these procedures will help you run your business smoothly with full confidence.

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