Texas has one of the most active construction markets in the country — and one of the most fragmented licensing systems. Here's what you need to know before hiring a contractor for commercial work.
How Texas Contractor Licensing Works
Unlike many states, Texas does not require a general contractor license at the state level. However, specific trades do require state licenses: electrical contractors (TDLR), plumbing contractors (TSBPE), HVAC contractors (TDLR), and low-voltage/security contractors (DPS).
This means your GC may not need a state license — but their subs for licensed trades absolutely do.
How to Verify a Texas Contractor License
TDLR (Texas Department of Licensing and Regulation) licenses — including electrical and HVAC — can be verified at tdlr.texas.gov. Plumbing contractor licenses can be verified at the Texas State Board of Plumbing Examiners (tsbpe.texas.gov). Always verify before signing a contract.
Insurance Requirements
Licensed doesn't mean insured. Always require a Certificate of Insurance (COI) naming your business as an additional insured. For commercial projects, general liability of at least $1M per occurrence is standard. Workers' comp is required for most commercial contractors in Texas.
Who Licenses What in Texas
Texas spreads construction licensing across several agencies. This table covers the trades and professionals most commercial projects involve.
| Work | Who licenses it |
|---|---|
| Electrical | Texas Department of Licensing and Regulation (TDLR) |
| HVAC and refrigeration | TDLR (Air Conditioning and Refrigeration; Class A or Class B) |
| Plumbing | Texas State Board of Plumbing Examiners (TSBPE) |
| Medical gas piping | TSBPE (Medical Gas Piping Installation endorsement) |
| Fire sprinklers, fire alarms, extinguishers and kitchen hood suppression | State Fire Marshal’s Office (Texas Department of Insurance) |
| Backflow assembly testing | Texas Commission on Environmental Quality (TCEQ) |
| Security alarm and access control | Texas Department of Public Safety, Private Security Program |
| Elevators and escalators | TDLR |
| Accessibility plan review and inspection | TDLR (Registered Accessibility Specialists) |
| Architects | Texas Board of Architectural Examiners |
| Engineers | Texas Board of Professional Engineers and Land Surveyors |
| General contracting, roofing, concrete, drywall, paving | No state license; some cities require local registration |
Trade pages with more detail: commercial plumbing, fire protection and general contractors.
A Step-by-Step Verification Routine
- Get the numbers in writing. Ask each bidder for the license numbers of the company and of the licensed person responsible for the work — the master electrician, the Responsible Master Plumber, or the fire protection license holder.
- Look them up yourself. Use the agency’s own license search, not a copy of a card. Check the name matches the company on the bid, the license is active, and the license class fits your job (for example, HVAC systems over 25 tons of cooling need a Class A contractor).
- Check the business entity. Search the company on the Texas Secretary of State’s business records to confirm it exists and is in good standing.
- Ask about city registration. Some cities require contractors to register locally before they can pull permits.
- Confirm who pulls the permit. The licensed contractor should pull it under their own license.
- Collect insurance certificates. Request them directly from the contractor’s insurance agent, naming your business as additional insured.
What a License Does and Doesn’t Tell You
A license shows that a person or company met the state’s requirements and can legally do the work. It doesn’t tell you whether they have experience with your type of project, how they communicate or whether they finish on time. For those, check references from similar commercial projects and read their bid carefully. Our guide to choosing a commercial contractor covers what to look for beyond credentials.
Licensed Subcontractors Under a General Contractor
Because Texas doesn’t license general contractors, the licensed work on most buildouts is done by subcontractors. Ask your GC to list the electrical, plumbing, HVAC and fire protection subcontractors they plan to use, with license numbers, and check them the same way. If the GC changes a licensed subcontractor after you sign, ask for the new license information.
Licensed Contractor FAQ
Does Texas require a general contractor license? No. There is no statewide general contractor license, though some cities require local registration. The specialty trades inside your project are licensed.
Do roofers need a license in Texas? Texas has no statewide roofing license. The Roofing Contractors Association of Texas offers a voluntary license, and roof manufacturers certify installers for their warranties.
Is a licensed contractor automatically insured? No. Licensing and insurance are separate. Always get a current certificate of insurance.
The Verification Gap
Most business owners don't have time to manually verify licenses and insurance for every contractor they contact. BidBridge Texas does this verification upfront — every contractor on our platform has been checked for applicable licenses, insurance, and commercial experience before they receive a single project lead.