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Hiring a contractor in Texas

Texas licenses electricians, air-conditioning contractors, plumbers, lawn sprinkler installers and pest control companies1,2,3,3,4,5. Free state lookups let you check the license of an electrician, an air-conditioning contractor or a plumber6,3. For sprinkler work, the irrigator's license number should be on the ad and the bid7. Some work that owners do on their own homes needs no license8,1,2.

Texas law also has rules for paying a contractor. On a job where someone could put a lien on your home (a legal claim for unpaid work or materials), you hold back 10 percent of the price until 30 days after the work is finished9,10. If a seller pitches you in person at your home and you agree there to buy goods or services costing more than $25, you can often cancel until midnight of the third business day after you sign11. Each line below links to the Texas law or state agency page it comes from.

Which home trades need a state license, and how do I check one?

  • In Texas, a person or business must hold a state license to do or offer electrical work. There are some exceptions. For example, a person who owns and lives in a home may do work there that a city ordinance does not specifically regulate.1
  • In Texas, air-conditioning and refrigeration contracting needs a contractor license, and a state license is good anywhere in the state. A homeowner may do this work in a building they alone own as their home, but the work still needs any city permit or inspection.2
  • Electricians and air-conditioning contractors are licensed by the Texas Department of Licensing and Regulation, whose free search shows active licenses by name, license number, city, county or ZIP code.6 Search active licenses on TDLR's free lookup →
  • In Texas, a company that offers plumbing to the public must have at least one Responsible Master Plumber and a current certificate of insurance on file with the state plumbing board.3
  • The Texas State Board of Plumbing Examiners publishes free lists of licensed plumbers and updates them every day.3 Look up a plumber on the state board's free lists →
  • A plumber's written estimate and invoice should show the Responsible Master Plumber's license number and the name, address and phone number of the Texas State Board of Plumbing Examiners. The board does not set plumbing prices, so get several estimates in writing.12 File a complaint with the Texas State Board of Plumbing Examiners →
  • In Texas, anyone in the pest control business needs a license, from a one-person company to a big national chain. That can include lawn and landscape companies that offer weed and plant-insect control around homes.5 See TDA's lists of active pest control licenses →

When is no state license needed, and when does plumbing still need a permit?

  • Texas law lets property owners do plumbing in their own homestead (the home they own and live in) without a plumbing license. This rule is only about the license. It says nothing about permits.8
  • Texas law requires every city with more than 5,000 people to require a permit before plumbing work. The exceptions are repairing leaks or replacing a bathroom-sink or kitchen faucet, a ballcock (the valve that refills a toilet tank) or water control valve, a garbage disposal, or a toilet. A water heater is not on that list.13
  • Landscapers do not need an electrical license to install and maintain low-voltage outdoor lighting and holiday lighting. That exemption does not cover any power source the lights need.14

How do I pay a contractor without risking a lien on my home?

  • Before you sign a contract to build or repair your home, Texas law says the contractor must give you a written "Know your rights" statement. Before work starts, the contractor must also give you a list of the subcontractors and suppliers it plans to use, unless you sign a written waiver.10
  • If a written contract for work on your current homestead can put a lien on it, the contract must include a warning in at least 10-point bold type. The warning says that if you sign and don't meet the contract's terms, you may lose your legal ownership rights in your home.15
  • If a contractor signs a written contract with you to build improvements on your homestead for more than $5,000, Texas law says the contractor must keep your construction payments in a construction account at a bank or other financial institution. The account statement must call it a "construction account."16
  • Texas law says that on a job where someone could claim a lien on your home for unpaid work or materials (the law calls this a mechanic's lien), you, the owner, must hold back 10 percent of the contract price (or 10 percent of the value of the work done so far). This lasts while the work goes on and for 30 days after it is finished.9
  • Why hold back the 10 percent? If you don't keep it for at least 30 days after the contractor finishes, ends or abandons the job, and someone makes a valid, on-time claim that your contractor doesn't pay, you may be personally liable. Your property may also get a lien, up to the amount you failed to hold back.10
  • If a subcontractor or supplier sends you a written notice of a claim, you should hold back that amount from your contractor until the dispute is settled. If you keep paying the contractor without holding it back, you may be liable and your property may get a lien for that amount.10
  • When you make the final payment on work on your home, the contractor must give you a sworn statement (an affidavit) that everyone who supplied labor and materials has been paid in full. If someone is still owed, the affidavit must say how much and to whom.17

What should I know about door-to-door and storm contractors?

  • If a seller pitches you in person somewhere other than its place of business, such as your home, and you agree there to buy goods or services costing more than $25, Texas law lets you cancel until midnight of the third business day after you sign. Some sales are left out of this rule.11
  • In most of these sales, the seller must give you the contract or receipt when you sign, with a cancel notice next to where you sign, plus two copies of a cancellation form. If you cancel under this law, the seller has no right to be paid for services it already did.18
  • After a disaster, it is against the law for out-of-town contractors to ask for a down payment before they start work. Be wary of any contractor who asks for a large or full down payment.19
  • Don't sign a contract that says "Homeowner agrees to the listed repairs for the value of insurance proceeds." The Texas Department of Insurance says that lets the contractor take every penny of your insurance payment.19
  • In Texas, a seller may not pay or waive your deductible, or give you a rebate or credit to cover it, if the seller knows you will pay with a property insurance claim and your insurer has not agreed. Doing this is a crime (a Class B misdemeanor). So is advertising or promising to do it.20
  • If a contract for goods or services is $1,000 or more and is expected to be paid in whole or in part from a property insurance claim, it must include a notice in at least 12-point bold type. The notice says the insured person must pay the deductible.20

Who may work on a lawn sprinkler system?

  • In Texas, you need a license from the Texas Commission on Environmental Quality to sell, design, install, maintain, change, repair or service a lawn sprinkler (irrigation) system. Some people are exempt. A homeowner working at their own home is one of them, but must still follow the state's standards and rules.4
  • Skip any ad for sprinkler (irrigation) work that doesn't show the irrigator's license number, which looks like "LI0123456". Bids, invoices and warranties should show the irrigator's name, license number, business address and phone number. A license holder must be on site for any installation or repair.7
  • If fertilizer, insect repellent or any other chemical is put into a sprinkler system, Texas requires a Reduced Pressure Assembly backflow prevention device. It stops water with those chemicals from flowing back into the public water supply.21

Before you pay a contractor in Texas

  1. Check the license before you sign. Use the state's free search for an electrician or air-conditioning contractor and the plumbing board's lists for a plumber. A plumber's or irrigator's bid should show a license number.6,3,12,7
  2. Be wary of a contractor who asks for a large or full down payment. On a job where someone could put a lien on your home (a legal claim for unpaid work or materials), hold back 10 percent of the price until 30 days after the work is finished.19,9,10
  3. With the final payment, get the contractor's sworn statement that everyone who supplied labor and materials has been paid. If a subcontractor or supplier has sent you a written claim, hold that amount back until it is settled.17,10

City pages in Texas

  • Hiring a contractor in Addison, TX

    Which Addison home jobs need a permit, the Town's contractor registration, how to check a state license, and what Addison's own pages say about rentals.

  • Hiring a contractor in Allen, TX

    Do contractors in Allen have to register with the City? Also: Allen home permit fees, watering days, solicitor badges, tree and fence rules, rentals.

  • Hiring a contractor in Arlington, TX

    Who must be registered with the City of Arlington to work on your home, which jobs need a permit, and the City's yard, sprinkler and door-to-door rules.

  • Hiring a contractor in Dallas, TX

    Which Dallas contractors must register with the City, which home jobs need a permit, who may pull one, and the City's lawn watering rules.

  • Hiring a contractor in Fort Worth, TX

    Who can apply for a Fort Worth permit, which home jobs need one, how to check a contractor's license, sprinkler days and door-to-door rules.

  • Hiring a contractor in Frisco, TX

    Which Frisco jobs need a permit, which trades need a City R-Number, how to check a Texas license, and Frisco's fence and sprinkler rules.

  • Hiring a contractor in McKinney, TX

    Which McKinney home jobs need a permit, how contractors register with the City, fence and retaining-wall rules, work hours, and fake permit invoices.

  • Hiring a contractor in Plano, TX

    Must a Plano contractor register with the City? Which home jobs need a permit, what permits cost, how inspections work, and Plano's sprinkler rules.

  • Hiring a contractor in Prosper, TX

    Which Prosper home jobs need a Town permit, who has to pull it, how to look up a registered contractor, and the Town's roof, fence and lawn rules.

  • Hiring a contractor in Richardson, TX

    Must contractors register in Richardson? Which jobs need a City permit, the sprinkler and watering rules, and when door-to-door sellers may knock.

Published by CrewButton (Econ Labs, LLC, Addison, Texas). Drafted with AI (Claude) from the sources below. Facts were checked against their sources by AI, and the page was approved by CrewButton's founder on . First published . Updated . Last reviewed .

Sources

  1. Occupations Code Chapter 1305. Electricians. Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  2. Occupations Code Chapter 1302. Air Conditioning and Refrigeration Contractors. Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  3. Free Licensee Lists. Texas State Board of Plumbing Examiners. Read 2026-10-12.
  4. Occupations Code Chapter 1903. Irrigators. Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  5. Structural Pest Control Consumer Information. Texas Department of Agriculture. Read 2026-10-30.
  6. TDLR Active License Search. Texas Department of Licensing and Regulation. Read 2026-11-02.
  7. Hiring Licensed Professionals for Landscape Irrigation: Homeowners (GI-632a). Texas Commission on Environmental Quality (2023-07). Read 2026-10-30.
  8. Texas Occupations Code §1301.051, Plumbing by property owner in homestead. Texas Legislature (Texas Constitution and Statutes). Read 2026-10-29.
  9. Property Code Chapter 53. Mechanic's, Contractor's, or Materialman's Lien (Sec. 53.101). Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  10. Property Code Chapter 53 (Sec. 53.255, disclosure statement). Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  11. Business & Commerce Code Chapter 601. Cancellation of Certain Consumer Transactions. Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  12. Consumer Information. Texas State Board of Plumbing Examiners. Read 2026-10-30.
  13. Texas Occupations Code §1301.551, Municipal plumbing ordinances and permits. Texas Legislature (Texas Constitution and Statutes). Read 2026-10-29.
  14. Occupations Code Sec. 1305.003. Exemptions. Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  15. Property Code Chapter 41. Interests in Land Exempt from Seizure (Secs. 41.001, 41.007). Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  16. Property Code Chapter 162. Construction Payments and Loan Receipts (Secs. 162.001, 162.006). Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  17. Property Code Chapter 53 (Sec. 53.259). Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  18. Business & Commerce Code Chapter 601 (Secs. 601.052, 601.053, 601.101). Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  19. How to avoid contracting scams. Texas Department of Insurance (2025-12-09). Read 2026-10-30.
  20. Business & Commerce Code Sec. 27.02. Goods or Services Paid For by Insurance Proceeds: Payment of Deductible Required. Texas Legislature (Texas Constitution and Statutes). Read 2026-10-30.
  21. Landscape Irrigation. Texas Commission on Environmental Quality (2026-01-05). Read 2026-10-30.

Neither CrewButton nor this information is endorsed by the State of Texas or any state agency.