Being a general contractor is appealing to many different types of people. People who like to work with their hands, people who have a skill for task delegation, and people who garner satisfaction from seeing a job through to the very end all flock to the trades, and many of them eventually become general contractors.
It’s also easy to imagine that many general contractors get into the business because of job security. In addition to making an above-average income, general contractors’ job growth projection through 2026 is 11%.
And if you are one of the people who want to be among Texas’ fine general contractors, you probably have some questions about the process. Luckily, obtaining a general contractor license in Texas isn’t as hard as it is in other states. But the process is still riddled with red tape and bureaucracy.
In the following post, Contractors’ Society of America will be helping all the hopeful general contractors out there by answering some of the questions associated with how to get a general contractor license in Texas.
Can I Use my Contractor License in Another State?
While some states have contractor license reciprocity agreements (meaning that you can obtain a contractor’s license in a state other than the one you became licensed in without taking another test), some do not. At the time of this writing, Texas has no such reciprocity agreements with other states.
Furthermore, “state jumping” is not allowed. State jumping refers to when you get a reciprocal license in one state and then go to another state and obtain a license there and the merits of the reciprocal license you got in the previous state.
Do I need a General Contractor License in Texas?
The short answer is no. Texas does not require any testing or specific licensing if you want to operate as a general contractor. But there’s always a short answer and a long answer. The long answer is that while Texas doesn’t require anything to operate as a general contractor, some cities within the state might.
Of course, it gets complicated for many general contractors. The city you are working in may have its licensing requirements. But to get your general contractor business set up in Texas, there aren’t any specific licensing requirements.
Contractors that need a License in Texas
Chances are if you are a general contractor, you probably offer other services that do require state licensing. For example, if you plan on providing plumbing, HVAC, or electrical services in-house, you will need to obtain a license for those services. Of course, if you plan on subcontracting all of those services out, you won’t have to worry about getting those licenses yourself. You must be sure that any subcontractor you are working with is fully licensed and insured.
Do I need General Contractor Insurance in Texas?
Again, the short answer is yes. If you are working for public clients, the state requires that you have workers’ compensation insurance. Workman’s comp protects your clients and your employees should they get hurt on the job. The workers’ compensation insurance will foot the bill for any medical costs.
And yet again, there is a longer answer. You may also need a builder’s risk insurance and put up a surety bond to work with some clients or in certain cities in Texas. The surety bond protects the client if they fall short of building codes or a project is left incomplete. The builder’s insurance protects against any damages that may occur during any given project.
Some cities may require you to have all of the insurance types mentioned above to get your work permit. The best way to find out which Texas cities you will need a license and insurance in is by visiting the Texas Municipal League’s website and clicking on the specific city. That link takes you to a city-specific website that lists general contractor licensing and insurance requirements.
Get your Career Started
If you are ready to start your journey as a general contractor, why not become a member of Contractors’ Society of America. We provide you with the valuable resources you will need throughout your career. Plus, we offer unique networking opportunities for contractors of all kinds so you can find quality subcontractors or pick the brains of industry leaders.