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TexasUpdated 19 August 202612 minute read

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Texas hands out no contractor license, so a GC's bid list is the gate that matters

Texas does not issue a general contractor license. There is no state exam for framing, roofing, painting, concrete, drywall, flooring or excavation. You can file an LLC on Monday and be legally entitled to build on Tuesday.

That freedom moves the gate somewhere else. It moves it onto an estimator's second monitor at a general contractor in Houston or Plano or Schertz, into a short list of names in your trade. When a job goes out for pricing, the names on that list get the invitation, and the pricing is finished before the job is public.

Getting onto that list is two jobs wearing one name. The first is paperwork, and in Texas it is a short stack you can finish inside a week. The second is craft: finding the right human, calling in the quiet month, and being the sub they remember at four in the afternoon on bid day.

Here is what the prequalification packet asks a Texas sub for, who to send it to, and why a Houston list and a DFW list are two different lists.

The list belongs to one person, and it is usually the estimator

A bid list is not held by a company. It is held by a person, in a spreadsheet or in the invite module of Procore, Building Connected or SmartBid, and the person is usually an estimator or a preconstruction coordinator.

That matters because the project manager is the name you have. The PM runs jobs that are already sold. The estimator builds coverage for jobs that are not sold yet, long before a shovel moves, and the estimator is the one who types a new subcontractor into the system.

Large Texas GCs split estimating by scope, so there is a concrete and structures estimator, a finishes estimator, an MEP coordinator. You want the one who prices your trade, by name, with a direct line. Front desk, LinkedIn, the sign at the gate of a job you drove past, the supply house counter, a super you worked under two years ago: any of those gets you a name while the info@ address is still unread.

Then log the name with the date and what you talked about. A conversation in February is what makes a call in September possible.

What a Texas prequal packet asks for

The packet looks long. Once the documents exist it is an afternoon's work, and every row has a Texas answer.

What they ask forWhat clears it
Entity proofCertificate of filing from the Texas Secretary of State, your EIN, and a signed W-9. Accounts payable cannot set you up as a vendor without the W-9, so it holds the whole file
Good standingThe Comptroller's certificate of account status. Your franchise tax report is due 15 May each year, and the Public Information Report is due even when you are under the no-tax-due threshold, which is $2,650,000 for report years 2026 and 2027. Miss it and the state forfeits your right to transact business, which any GC can see in a search
Certificate of insuranceACORD 25 carrying additional insured for ongoing and completed operations, waiver of subrogation, and primary and non-contributory wording, with the endorsement pages attached
Workers comp or the non-subscriber answerA comp policy number, or a stated non-subscriber election with your occupational injury plan and employers liability cover behind it
Safety recordYour experience modifier and your OSHA 300A logs, usually the last three years, plus a written safety program with a named competent person
Bonding capacityA letter from your surety agent stating single job and aggregate capacity. Worth getting even on unbonded work, because it reads as a credit reference
Trade license, if your trade has oneTDLR electrical contractor license (TECL) under Occupations Code Ch.1305, TDLR air conditioning and refrigeration Class A or B, a responsible master plumber through TSBPE, or a TCEQ irrigator license
City registrationProof you can pull a permit in the city where their work is
ReferencesThree GCs or owners, with the job name, the contract value, and a phone number that gets answered

The trade license row is where Texas quietly rewards you. If you hold a TECL, your general liability is already at $300,000 per occurrence, $600,000 aggregate and $300,000 products and completed operations, because 16 TAC 73.40(a) makes TDLR check it every year at renewal. A responsible master plumber carries at least $300,000 in commercial general liability with the certificate on file at TSBPE before working, under Occupations Code 1301.552 and 1301.3576. You already clear a private GC's floor, and you can say so in the cover email.

Coastal roofers have the same lever. There is no state roofing license, but a WPI-8 certificate of compliance from the Texas Department of Insurance is what makes new work, re-roofs and retrofits insurable through TWIA in the fourteen first tier coastal counties and part of Harris. Issue that paperwork cleanly and you are solving the owner's insurance problem, which estimators from Corpus Christi to Beaumont price accordingly.

The comp box and the EMR box are the two Texas questions

Prequal forms carry a workers compensation line and an EMR line. In Texas both of them are decisions rather than boxes, because Texas is the one state where a private employer can elect not to carry comp at all.

Carry comp and the form fills itself in: carrier, policy number, statutory limits, and your experience modifier, where 1.00 is the industry average and anything under it is a discount you earned on your own safety record. GCs score that number, and institutional owners write a ceiling for it into the front end documents. An EMR of 0.78 is a competitive advantage you can put in a subject line.

Go non-subscriber and there is no comp policy, so there is no EMR to report. That box is an opening. "N/A" tells the estimator nothing about you. Three lines tell them you have run the numbers:

  • State the non-subscriber election plainly, and reference your DWC Form-005 filing with the Division of Workers' Compensation. It goes in each year in the 1 February to 30 April window, and again within 30 days of hiring your first employee.
  • Attach the occupational injury benefit plan and the employers liability policy, which is the coverage the GC's risk manager actually wants to see.
  • Supply three years of OSHA 300A recordable and lost time rates in place of the EMR, plus your total hours worked, so they can score you on the same axis as a subscriber.

That is a stronger file than a subscriber with a 1.15 modifier, and it takes one page. The comp choice and the numbers behind it are laid out in the workers comp decision in Texas, and the endorsement wording that gets a certificate accepted the first time is in the Texas certificate of insurance guide.

Texas is five markets, so it is five bid lists

Houston to Dallas is 240 miles. A GC with offices in both runs them as separate businesses for bidding purposes, with separate estimators, separate sub databases, and often a separate prequalification. Approval in San Antonio is a reference you can name in Fort Worth, and the Fort Worth packet still gets filed on its own. The second filing is the fast one, because the documents already exist.

So pick a metro, and register where the work is. City registration is cheap, it takes days, and it answers the one question a GC has about a sub they have not used: can this outfit pull a permit here.

MetroRegistration before a permitWhat it costs
DallasContractor registration with Building Inspection through the DallasNow portal, with proof of an established place of business and a designated responsible party$120 a year
Fort WorthRegistration in the category you work in: building, mechanical, electrical, plumbing, sign, parkway and utility$168.75 a year for building, one year from issue
HoustonNo general contractor registration. Trade contractors register their state license with the cityNothing for a GC
San AntonioHome Improvement Contractor or Residential Building Contractor for residential work, with an FBI background check. RBC also needs a Residential ICC certification held by the registrant or an affiliated agent. Commercial GCs have no city requirement$150 HIC or $170 RBC, each for a two year term
AustinFree registration through the Austin Build and Connect portal before any building or trade permit$0

San Antonio also sets insurance at the city level: $300,000 per occurrence, $600,000 aggregate and $300,000 products and completed operations for a Home Improvement Contractor, and $500,000, $1,000,000 and $500,000 for a Residential Building Contractor, with the City named as certificate holder. Ask your broker for that certificate at the same time as the GC one and it is a single email. The full matrix is in the Texas city registration guide.

Call in the quiet month, not on bid day

The invitation list exists before the drawings go out. A GC chases a job, wins the pursuit, and the estimator assembles coverage from the subs already in the system. By the time the project shows up in a plan room, the list is closed.

Which means the call that works is the boring one, made in a week when nothing is due. Ninety seconds, one question: what do you need from a new sub before you can add us to the list for concrete, and who do I send it to. That call gets answered, because you are not asking for anything the estimator has to decide today.

Then send it as one PDF, named with your company and your trade, with the scopes you want to be called for stated in the first three lines. Eleven separate attachments called scan_001 is a file that gets left in the inbox.

What makes a sub memorable when the bids are being levelled

At three in the afternoon on bid day an estimator has six numbers for your scope and forty minutes. What they remember is not who was cheapest.

Bid the scope as written and list your exclusions in plain lines. The bid that drops straight into the levelling sheet without a clarifying phone call is the one that gets carried, and the sub who wrote it gets called first next time.

Confirm you are bidding within a day of the invite. The estimator's real fear is a scope with no coverage at all. Being the reliable yes is worth more than being the low number once.

Send a price even when you know you are heavy, and say why. A note reading "we are at $412,000, the deck is carrying our pour sequence" tells them you read the drawings. That is a sub they will call on the next one, where the sequence suits you.

Answer the phone on bid day. The estimator with a question at ten past four calls you once. Pick up, and your number stays in the levelling sheet.

Then perform on the first job. The certificate matching the exact contracting entity, the submittals in on time, the crew that shows up Monday. One clean job moves you from the list to the short list.

Getting paid keeps you on the list

The relationship survives the invoicing, so run the money side deliberately. On private work, Tex. Prop. Code s.28.002 gives the owner 35 days from a written payment request, and gives whoever receives that money 7 days to pass the sub share down. Overdue amounts accrue 1.5% a month under s.28.004, and those terms cannot be signed away in the subcontract.

Your monthly notice under s.53.056 is due by the 15th day of the third month after the month you did the work on commercial jobs, the second month on residential, sent to the owner and the original contractor together and carrying the statutory warning text. That notice is also the instrument that traps funds in the owner's hands, on top of the 10% statutory retainage the owner holds under s.53.101 through the work and for 30 days after completion. Where your contract provides for retainage, the separate notice of claim under s.53.057 goes out within 30 days of your own contract finishing or the original contract ending, whichever comes first.

Those dates are leverage rather than admin. On day 36 the balance is accruing interest, and the sub who can name the section it comes from gets paid without a fight. The Texas lien deadline calculator counts every one of them from the month you furnished.

What it costs

Contacts, the prequalification documents, the certificate tracking and the bid feed are part of running your business on AEC Stack. The contact log holds the estimator's name, the date you called and what was said, so the call in September opens with the conversation from February. The document side keeps the packet assembled as one file, so the next GC who asks gets it the same afternoon. Certificate tracking watches the expiry dates on the ACORD and the trade license, which is the quiet way a sub drops off a list they had already earned. The bid feed shows the work those estimators are chasing.

There is no monthly subscription. The platform fee is 2.5% of each invoice processed through AEC Stack, collected on the payment due date.

Pick one general contractor whose sign you have driven past twice this month. Get the estimator's name. Put the packet together once, then send it to them and to the next four. The Texas bid ready checklist is the document stack laid out in order, and find work is where the jobs those estimators are chasing show up first.

Keep going

Also on workers' compYour COI is the Texas licenseTexas issues no contractor license, so the certificate of insurance decides whether you get on the job. Get the general liability limits Texas GCs ask for, the additional insured endorsement the certificate alone does not give you, and the state minimums for electrical, HVAC and plumbing under 16 TAC 73.40 and 16 TAC 75.40.Also on pricing and estimatingWhere work is starting in TexasAustin, Dallas and San Antonio publish every permit they issue, free and daily, with the scope, the declared valuation and the contractor of record on it. Read one like an estimator: what that job is worth to your trade, and how many weeks after the permit date your call is on time.Also on pricing and estimatingTexas bid ready checklistTwelve documents stand between you and a vendor number at a Texas general contractor, and five of them cost nothing. Certificate of Formation, EIN, W-9, certificate of account status, ACORD 25 endorsements, the comp answer, city registration, bonding capacity and HUB, each with who issues it and how long it takes.Also on workers' compRunning a 1099 crew in TexasTexas has no state wage withholding and workers comp is elective, so a crew of subs is the normal shape. The kit that holds it: W-9 before the first check, the COI you actually read, Labor Code s.406.123 and DWC Form-083, and the 1099-NEC at $2,000.Also on pricing and estimatingBid your own concrete work in TexasTexas licenses electricians and plumbers, not concrete. What actually gates your first bid is a folder: city registration, a certificate with completed operations on it, commercial auto, and the comp decision. Plus the yield table, the pour date cash gap and the subgrade change order that concrete crews argue most.Also on pricing and estimatingDrywall and painting in TexasTexas does not license drywall contractors or painters, so the quote decides the money instead of a board. What gates you is the city permit desk, the insurance certificate, the comp election, and the EPA lead rule on pre-1978 homes. Then the finish level table that stops a level 4 price buying level 5 work.
Read next
Texas bid ready checklist
Twelve documents stand between you and a vendor number at a Texas general contractor, and five of them cost nothing. Certificate of Formation, EIN, W-9, certificate of account status, ACORD 25 endorsements, the comp answer, city registration, bonding capacity and HUB, each with who issues it and how long it takes.

Someone in your trade group needs this. Send it to them.

The dates that cost Texas contractors money

One email a month. The lien deadline and prompt payment arithmetic this site already does for you, the dates it turns on, and every new guide the day it goes up.

  • Texas lien deadline calculator: The 15th-of-the-month arithmetic, done. Monthly fund-trapping notices and the affidavit deadline, commercial or residential.
  • Texas prompt payment calculator: When the money was legally due under chapter 28, counted the whole way down: the owner period plus the pass-through to you.
  • Every new guide the day it goes up. 38 are live for Texas right now, the most recent being "What an hour costs you in Texas" on 20 August 2026.

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