General Contracting contractors in
Houston, Texas.

What's the difference between a Restricted and Unrestricted General Contractor license in Texas?

Texas TDLR issues two license types. Unrestricted licenses allow you to bid and perform any project regardless of value—single-family homes, commercial buildings, industrial work, anything. Restricted licenses limit you to projects valued under $50,000. Both require the same exam and 4-year renewal cycle. If you start Restricted and want Unrestricted later, you can upgrade without retaking the exam; just file the change with TDLR and pay the fee. Most Houston contractors go Unrestricted because residential additions and commercial jobs regularly exceed $50K. Restricted works if you focus on repair/remodel work under that threshold.

How long does it take to get a General Contractor license in Texas?

From application to license in hand: 2-4 weeks minimum if you submit clean paperwork and pass the exam on first try. Application takes 1-2 weeks to process through TDLR. Exam scheduling depends on volume—Houston testing centers typically have slots within 5-10 business days. The exam itself is 5 hours, covers 110 questions on construction law, safety, and code. If you fail (roughly 35-40% fail rate on first attempt), you can retake it after waiting 30 days. Budget 2-3 months total if you need study time. You cannot legally operate as a GC in Texas before the license is issued—working unlicensed can result in fines up to $4,000 per violation and work stoppage.

What are typical permit costs and timelines for residential work in Houston?

City of Houston charges $10-25 per $1,000 of project value, plus plan review fees ($150-500 depending on complexity). A $75,000 kitchen/bathroom remodel runs $750-2,000 in permits. Timeline: standard review is 5-10 business days for single-family residential; expedited (if project under $50K and plans are clean) can be 2-3 days. Commercial and multi-family add 15-30 days. Suburban jurisdictions (Katy, Pearland, The Woodlands) vary—some faster, some slower; budget 10-20 days if the project is outside city limits. Resubmittal for plan corrections can add another 7-14 days. Always submit permits before work begins or inspections will shut the job down.

What insurance do I need to bid and operate as a General Contractor in Houston?

Texas law doesn't mandate minimum insurance for GCs, but clients and bonding companies require it. Standard Houston market minimums: $1,000,000 general liability (bodily injury and property damage combined), $1,000,000 aggregate per project. If you have employees, workers' compensation is required—coverage amount is based on estimated payroll (typically 100% of projected annual wages). Most Houston contractors carry $2M/$2M to stay competitive. On projects over $100K or all public/government work, clients require a performance bond (5-10% of contract value) and a payment bond (typically same as performance bond). Bonding costs 1-3% of contract value annually. Budget $2,000-5,000/year in insurance premiums for a solo operator; scale up with employees and project volume.

Why do Houston construction costs run higher than the national average?

Houston material costs are 8-12% above national median due to several factors. First: shipping. Houston is downstream from major manufacturing, and freight to get materials here costs more than inland metros. Second: labor. BLS reports median general contractor supervisor wage at $112,674/year in Texas; Houston-area subs command premiums because demand is constant and competition for skilled workers is fierce. Third: supply chain. Hurricanes and summer heat create seasonal demand spikes and inventory constraints; suppliers raise prices when stock is tight. Fourth: local code compliance. Houston amendments to IRC and unique inspection requirements mean some materials (roofing, HVAC) must meet stricter specs, raising cost. Fifth: labor availability. Good crews book 3-6 months out during peak season; expedited scheduling costs 15-25% premium. Budget 8-10% contingency on material pricing if your project spans 3+ months.