Summary
Operating as a general contractor in Houston requires navigating both state and local requirements. At the state level, residential contractors must obtain a TRCC license, while commercial contractors have fewer licensing requirements but must still comply with specialty trade regulations. The city of Houston maintains strict permitting requirements through their centralized Permitting Center, with most projects requiring building permits and scheduled inspections. Insurance requirements are substantial, with general liability coverage being essential and workers compensation mandatory for employers. The Houston construction market is robust, offering opportunities across residential and commercial sectors, but contractors must stay current with evolving building codes, energy efficiency standards, and safety regulations. Success requires maintaining proper licensing, insurance, and permit compliance while delivering quality work in a competitive market.
License Requirements
General contractors in Houston must obtain a Texas Residential Construction Commission (TRCC) license if working on residential projects. For commercial work, no state license is required, but contractors must register with the Texas Department of Licensing and Regulation (TDLR) for certain specialty work. Houston requires a city business license and may require additional permits for specific project types. The TRCC license requires passing an exam covering construction law, safety, and business practices, with 4 hours of continuing education annually. License renewal is required every 2 years with fees of approximately $265.
Permit Requirements
All construction projects in Houston require permits through the Houston Permitting Center. Building permits are needed for new construction, additions, alterations, and repairs exceeding $5,000. Applications can be submitted online through the ePlan system or in person. Typical processing times are 10-15 business days for residential projects and 15-30 days for commercial projects. Permit fees range from $50 for minor repairs to several thousand dollars for major construction based on project valuation. Inspections are required at various stages including foundation, framing, mechanical, and final.
Insurance Requirements
Texas requires general contractors to carry minimum general liability insurance of $300,000 per occurrence for residential work. Workers' compensation insurance is mandatory if employing workers, with coverage requirements varying by payroll size. Many clients and municipalities require $1 million in general liability coverage. Contractors working on public projects must provide performance and payment bonds. Vehicle insurance with minimum $30,000 per person and $60,000 per accident bodily injury coverage is required for company vehicles.
Typical Cost Ranges
General contracting projects in Houston typically range from $15,000-50,000 for home renovations, $200,000-500,000 for custom homes, $50,000-150,000 for home additions, $10,000-75,000 for kitchen and bathroom remodels, and $25,000-100,000 for roofing and siding projects. Commercial projects range from $100,000-2 million depending on size and complexity. Labor costs average $45-75 per hour for skilled trades, with material costs varying significantly based on current market conditions.
Compliance Checklist
- ✓Obtain TRCC residential contractor license and Houston business license
- ✓Secure general liability insurance ($1M recommended) and workers compensation if employing staff
- ✓Register with Houston Permitting Center and establish ePlan account
- ✓Obtain required building permits before starting any construction work
- ✓Schedule mandatory inspections at required construction phases
- ✓Ensure all subcontractors are properly licensed and insured
- ✓Comply with Houston building codes and energy efficiency requirements
- ✓Maintain proper documentation and contracts meeting Texas construction law requirements