How to Hire a General Contractor: A Guide | House Escort

Hiring a general contractor (GC) is one of the biggest decisions you’ll make as a homeowner. A good GC manages your project efficiently, keeps subcontractors accountable, and delivers results on time and on budget. The wrong GC can cost you twice the original quote, months of delays, and years of stress.

This guide covers the full process — from defining your project to signing a contract — so you hire with confidence.

Step 1: Define Your Project Scope First

Before you contact a single contractor, write down what you want. Vague requests produce vague bids that are impossible to compare.

Minimum project definition includes:

What work you want done (add a bedroom, remodel the kitchen, build a deck)
General quality tier (builder grade, mid-range, high-end finishes)
Your rough budget range (don’t share this yet — just know it internally)
Your timeline (must be done by X, or flexible)
Any known constraints (HOA rules, specific materials you want, permit requirements)

The more specific your scope, the more comparable your bids will be. “I want a 200 sqft deck with composite decking and a railing, permitted, in my backyard” gets you accurate bids. “I want a deck” gets you three wildly different proposals that can’t be compared.

Step 2: Find Qualified Contractors

There are several ways to find a GC — the most important thing is to use sources that give you accountability and real reviews.

Where to find general contractors:

House Escort: Browse vetted pros with verified reviews, respond to project inquiries, and connect directly — no lead-buying games
Personal referrals from neighbors: If someone on your street recently completed a similar project, ask who they used
Local builders associations: NAHB member contractors meet minimum professional standards
Permit office word-of-mouth: Local building officials sometimes know the most reliable licensed contractors in the area

What to look for immediately:

How quickly do they respond? Contractors who respond within 24 hours are more likely to manage your project with that same responsiveness.
Do they ask questions about your project before quoting? A GC who quotes sight-unseen is not taking your project seriously.
Are they local? A GC based in your market knows local permit offices, subcontractor relationships, and material suppliers.

Find a Vetted General Contractor on House Escort →

Step 3: Verify License and Insurance (Non-Negotiable)

In Texas, general contractors must be licensed in certain cities (Houston, Dallas) and are required to carry liability insurance. This step is non-negotiable before any further conversation.

What to verify:

General contractor license: Check Texas TDLR (tdlr.texas.gov) for licensed contractors and the city’s permit office for local registration requirements
General liability insurance: Minimum $1 million per occurrence for residential remodels. Ask for a Certificate of Insurance (COI) — a legitimate contractor provides this without pushback
Workers’ compensation: Required if the contractor has employees. Without workers’ comp, you may be liable if a worker is injured on your property.

How to verify:

Request the COI directly — ask their insurer to send it to your email (so it can’t be a doctored document)
Call the insurer to confirm the policy is active
Check the TDLR database for license status and any disciplinary history

This step eliminates the majority of fly-by-night operators and protects you from liability.

Step 4: Get Three Bids (Minimum)

Three bids is the practical minimum for any project over $5,000. For major renovations ($50,000+), get four or five.

The bidding process:

Give every contractor the same written scope — this is the only way to compare bids objectively
Schedule walkthroughs — any serious GC will need to see the space before bidding
Request itemized proposals — labor and material broken out by phase or area
Set a bid deadline — give everyone 7–10 days

When comparing bids:

Don’t automatically choose the lowest bid. Significantly below-market bids often mean lower quality materials, skipped prep steps, or a contractor who will find reasons to charge more mid-project.
Compare scope carefully — does every bid include the same work? One bid may exclude permit fees, another may include them.
Ask about subcontractors — will the GC use their own crew or sub out everything? Who are their subs for electrical, plumbing, and HVAC? Are those subs licensed?

Step 5: Interview Your Top Two or Three

Before selecting a GC, a 20–30 minute phone call or in-person meeting reveals a lot.

Key questions to ask:

“Have you done projects similar to mine? Can I see photos?”
“Are you currently taking on new projects? What’s your availability?”
“Who will be on-site day to day? Will it be you or a foreman?”
“How do you handle change orders?” (The answer should be: in writing, with pricing, before work proceeds)
“What’s your payment schedule?” (Red flag: asking for more than 30–40% upfront)
“Can you provide 2–3 references from similar projects in the last year?”

Call the references. Ask specifically: Did they finish on time? Were there unexpected costs? How did they handle problems? Would you hire them again?

Step 6: Red Flags to Watch For

These contractor behaviors are warning signs of poor quality or outright fraud:

Demands large upfront payment (50%+ before work starts): Legitimate GCs do not need this. Large upfront deposits are the #1 financing mechanism for contractor fraud.
No written contract: Never proceed on a handshake or text message.
No license or insurance: Not negotiable. Walk away.
Pressures you to decide immediately: Artificial urgency is a sales manipulation tactic, not a sign of a busy legitimate contractor.
No physical address or online presence: Fly-by-night operators vanish. Established businesses have addresses, reviews, and accountability.
Quote comes in dramatically below all others: Understanding why requires asking — but in most cases, it means something important is missing from the scope, materials are being cut, or subcontractors won’t be paid properly.

Step 7: The Contract

Never begin work without a signed contract. Texas law requires written contracts for home improvement projects over $5,000.

Contract must-haves:

Full project scope, written in detail
Materials specification (brand, model, grade where applicable)
Start date and estimated completion date
Payment schedule tied to project milestones (not calendar dates)
Change order process (written approval required before any additional work)
Warranty terms (workmanship and materials)
Dispute resolution process
Contractor’s license number and insurance information
Lien waiver provisions (protects you from subcontractor liens if GC doesn’t pay subs)

A Texas-specific concern: get a mechanic’s lien waiver signed by the GC and all major subcontractors at project completion. If the GC doesn’t pay their electrician, that electrician can put a lien on your home even though you paid the GC.

Frequently Asked Questions

How much should a general contractor markup be in Texas?

GC markup on a major renovation typically runs 15–25% on top of subcontractor costs and materials. This covers project management, overhead, scheduling, warranty, and profit. A 20% markup on a $60,000 subcontractor cost = $12,000 GC fee on a $72,000 project. This is normal and legitimate. Contractors who claim “zero markup” are either hiding it in labor rates or cutting corners elsewhere.

What’s a fair payment schedule for a home renovation in Texas?

A common fair schedule: 10% on signing, 25% at demo/mobilization, 25% at rough-in (framing, MEP), 25% at drywall/finish phase, 15% on completion and punch list sign-off. Tie payments to verifiable milestones, not calendar dates. Final payment should only release when you have inspected all work, obtained permit final, and received lien waivers.

Do I need permits for a renovation in Texas?

For any structural work, electrical, plumbing, HVAC, additions, or decks over 30 inches high — yes. Your GC should obtain and manage all permits. If a contractor recommends skipping permits to “save time,” that’s a major red flag. Unpermitted work can create problems when selling the home, result in mandatory tear-out, and void homeowner insurance in some cases.

Can I act as my own general contractor in Texas?

Legally, yes — homeowners can owner-build in Texas. But managing subcontractors requires active coordination, scheduling, knowledge of building sequences, and time. Most homeowners who try this underestimate the complexity. It works best for smaller projects or homeowners with construction backgrounds. For major renovations, the GC markup typically pays for itself in time savings and error avoidance.

How do I know if a contractor is doing quality work mid-project?

Inspect the project daily or every other day. Key mid-project quality indicators: framing is plumb and square, rough-in work passed inspections before being covered, no evidence of shortcuts (improper blocking, missing fire stops, disconnected straps), and the site is clean and organized. A messy jobsite often reflects messy workmanship. Ask questions — a good GC welcomes informed homeowners.