How to Verify a Contractor in Austin: A Homeowner's 2026 Checklist

Every week in Austin, a homeowner hands a deposit check to a contractor who isn't who they say they are. Sometimes it's $2,000 for a "roof inspection." Sometimes it's $40,000 for a remodel that never gets finished. The pattern is almost always the same: the homeowner trusted a friendly face, skipped the verification steps, and learned the hard way.

Texas is one of the loosest states in the country when it comes to general contractor licensing. There's no statewide GC license — meaning anyone with a truck, a website, and a few hours can call themselves a contractor. That puts the burden on you, the homeowner, to vet before you hire.

Here's the 7-step checklist we use at Contractor Verified before a single contractor enters our network. Use it before you sign anything.

1. Confirm the business is real and registered in Texas

Search the contractor's legal business name on the Texas Comptroller's Taxable Entity Search (comptroller.texas.gov). A legitimate contractor will be registered as an LLC, corporation, or sole proprietorship with an active status. If they can't be found — or their status is "forfeited" — walk away.

2. Verify trade-specific licenses (because GCs don't need one, but specialists do)

While Texas doesn't license general contractors, it absolutely licenses electricians, plumbers, HVAC techs, and irrigators. Check the Texas Department of Licensing and Regulation (tdlr.texas.gov) before hiring anyone in those trades. Roofers don't require a state license, which is exactly why roofing scams spike after every Austin storm.

3. Demand proof of general liability insurance AND workers' comp

Ask for a Certificate of Insurance (COI) listing you as an additional insured for the project. The minimum you should accept: $1M general liability and active workers' comp covering every crew member on your property. If a worker gets hurt on an uninsured job, you can be held liable. Don't accept a screenshot — call the insurance agent listed on the COI to confirm it's current.

4. Check the BBB, Google, and the Texas AG complaint database

BBB rating tells you how a business handles complaints. Google reviews show volume and recency. But the one most homeowners skip: the Texas Attorney General's consumer complaint search. If a contractor has been the subject of a state action, it'll show up there.

5. Pull at least three local references — and actually call them

Any contractor worth hiring can produce three Austin-area homeowners they've worked with in the last 12 months. Ask each reference: Did the project finish on time? Did the final price match the estimate? Would you hire them again? The third question is the truth-teller.

6. Read the contract before you sign — every line

A real contract specifies scope, materials, payment schedule, start and completion dates, lien waivers, and a clear change-order process. Be skeptical of any contractor demanding more than 10% upfront. Texas law allows mechanic's liens, so a missing lien waiver clause is a red flag that should stop the conversation.

7. Trust your gut on the red flags

High-pressure tactics ("this price is only good today"), door-to-door solicitation after a storm, no physical business address, cash-only payment requests, and reluctance to put anything in writing — these aren't quirks. They're warning signs. Every contractor scam in Austin starts with at least one of them.

The shortcut: use a network that's already done the vetting

Going through these seven steps yourself takes hours per contractor. Multiply that by three or four bids and you're spending a full work week just to break ground. That's the reason we built Contractor Verified — to do this work upfront so Austin homeowners don't have to.

Every contractor in our network has cleared all seven checks before being listed. Insurance, references, business standing, complaint history — verified and re-verified annually.

Browse Verified Austin Contractors →

Have a project coming up? Start with the directory, or apply to have us match you with the right vetted pro for your job.