# How to Vet a Custom Home Builder in Texas: 10 Questions

> Texas does not issue a statewide license for residential general contractors, so homeowners must do their own vetting. Before signing, ask for proof of liability insurance, recent local references, a sample contract, a written warranty, a detailed line-item estimate and a clear explanation of how allowances, change orders and payment draws work.

Web page: https://dreamhousetexas.com/blog/how-to-choose-a-custom-home-builder-texas · Last updated: 2026-10-01

Dream House Services LLC · 12567 St. Ann Ct, Willis, TX 77318 · Phone 253-332-4577 · Free estimate: https://dreamhousetexas.com/free-estimate

By Dream House Services Building Team · Published 2026-05-14 · Updated 2026-10-01 · Planning

## Why is builder vetting so important in Texas?

Texas once had a Residential Construction Commission, but it was abolished in 2009. Today, plumbers, electricians and HVAC contractors hold state licenses, while general contractors and home builders do not. Local permits and inspections still apply, but choosing a qualified, accountable builder is up to you.

## What questions should you ask a custom home builder?

Use these questions in every interview and compare the answers side by side.

- Can you show proof of general liability and workers’ compensation or occupational accident coverage?
- Which recent projects can I see, and may I call those homeowners?
- Who will manage my project day to day, and how often will we meet on site?
- Is your estimate line-item, and what is included in each allowance?
- How are change orders priced and approved?
- What is the payment draw schedule, and is it tied to completed milestones?
- Which trades are licensed, and are permits pulled in my name or yours?
- What written warranty do you provide, and how are warranty requests handled?
- How do you handle weather delays and material lead times?
- Can I see a sample contract before committing?

## What red flags should you watch for?

Be cautious with large upfront deposits unrelated to ordered materials, vague one-page bids, pressure to skip permits, no physical business address or reluctance to provide references. A professional builder welcomes questions because clear expectations protect both sides.

## What documents should you keep?

Keep the signed contract, plans and specifications, every approved change order, permit and inspection records, lien releases from subcontractors and suppliers with each draw and the final warranty documents. These records matter for insurance, resale and peace of mind.

## Related questions

### Do home builders need a license in Texas?

There is no statewide license for residential general contractors or home builders in Texas. Plumbing, electrical and HVAC trades are licensed by the state, and local governments require permits and inspections.

### What should a custom home contract include?

A clear scope, plans and specifications, line-item pricing with allowances, a payment draw schedule, change-order procedures, timeline expectations and written warranty terms.