How to Choose a General Contractor in Dallas-Fort Worth: Red Flags & Green Flags

The Texas Department of Licensing and Regulation (TDLR) receives thousands of consumer complaints about contractors every year - most of them preventable with basic due diligence before signing. Here is exactly how to vet a general contractor in Dallas-Fort Worth before handing over a deposit.

How to Verify a Texas Contractor's License

Texas does not require a general contractor's license at the state level, but does require licenses for specific trades: plumbing (TDLR), electrical (Texas Department of Licensing and Regulation), HVAC (TDLR), and others. Any GC worth hiring will have licensed subs for every trade and carry general liability insurance and workers' compensation.

1. 1Ask for their general liability insurance certificate - minimum $1M per occurrence for residential work.
2. 2Ask for workers' compensation coverage - if a worker is injured on your property and the GC has no workers' comp, you may be liable.
3. 3Ask for the license numbers of their plumbing, electrical, and HVAC subs - verify each on the TDLR website (tdlr.texas.gov).
4. 4Check their BBB rating and Google reviews - look at negative reviews and how the company responded.
5. 5Ask for three references from projects of similar scope completed in the last 12 months - and actually call them.

Green Flags: What a Good DFW Contractor Looks Like

• ✓Pulls permits for everything: A contractor who suggests skipping permits is asking you to take the legal risk. Unpermitted work can void your homeowner's insurance and create problems at resale.
• ✓Provides a detailed written contract: Scope of work, materials spec, payment schedule tied to milestones, change order process, and warranty terms all in writing.
• ✓Does not ask for more than 30% upfront: Texas law limits contractor deposits for residential projects. Large upfront payments are a red flag.
• ✓Has a physical office and local presence: Not just a phone number. A contractor who has been in DFW for years has a reputation to protect.
• ✓Communicates proactively: Returns calls same day, sends weekly project updates, flags issues before they become surprises.
• ✓Carries proper insurance: Can produce certificates of insurance immediately when asked - not "I'll get that to you later."

Red Flags That Should Make You Walk Away

• ✓Significantly the lowest bid: If one bid is 30%+ below the others, they are either missing scope or planning to cut corners. Low bids make money through change orders and substitutions.
• ✓Asks for large cash payment or check made to an individual: Protects against fraud and ensures paper trail.
• ✓Cannot provide references or insurance certificates immediately.
• ✓Pressures you to sign quickly or claims a "limited time" price.
• ✓Vague scope of work: "We'll handle everything" is not a contract. Demand line-item detail.
• ✓No written warranty: Any reputable DFW contractor warranties labor for at least one year.