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Where the rules come from

Who regulates construction in Texas

Texas has no general contractor licence. What it has instead is a set of trade licences issued by different bodies, municipal contractor registration that varies by city, and a state statute that limits how far a city can go. Working out who licenses you in Texas starts with the trade and the city, not the state.

32 authorities, 28 of them statutory, across 8 areas of practice. Every entry links to the publisher.

Code compliance

The codes a design has to satisfy and the bodies that publish and amend them.

StatutoryFree to read

Local Government Code ch. 214 (municipal building and rehabilitation codes) and Health & Safety Code ch. 233 (county residential requirements)

State of Texas

which building code appliesmunicipal adoption and amendmentareas outside municipal limits

Makes the widespread 'Texas has no building code' claim precisely wrong in the way that matters. There is a statutory baseline, it is a 2012 snapshot, and the AHJ has almost always moved past it. Only the AHJ's ordinance answers the question.

StatutoryFree to read

Windstorm inspection programme and adopted windstorm building codes (Insurance Code ch. 2210; 28 TAC ch. 5)

Texas Department of Insurance and Texas Windstorm Insurance Association

windstorm-resistant construction in the coastal catastrophe areastaged inspection and certificationinsurability of the completed building

The certificate is the condition of the owner obtaining windstorm insurance, which makes it a commercial deliverable and not merely a code matter. The mismatch between the insurance regulator's adopted edition and the city's is the trap on every coastal job.

Code compliance in Texas, in detail

Contract administration

The contract forms, payment statutes and notice regimes that decide when you get paid and what you have to serve to keep the right.

StatutoryFree to read

Business & Commerce Code ch. 59 - contractor liability for design defects

State of Texas

responsibility for owner-furnished designduty to report discovered design defectscodified Spearin-type risk allocation

Texas has codified what other jurisdictions leave to the Spearin doctrine and attached a reporting duty to it. It converts the RFI from an administrative habit into the discharge of a statutory duty, which is a concrete reason to date and keep them.

StatutoryFree to read

Government Code ch. 2269 (contracting and delivery procedures), ch. 2253 (public work performance and payment bonds), ch. 2251 (prompt payment by governmental entities), ch. 2252 subch. B (retainage) and ch. 2258 (prevailing wage rates)

State of Texas

delivery method selectionperformance and payment bondspublic prompt paymentretainage limitsprevailing wage

One handle for the five statutes that between them govern how a Texas public job is bought, bonded, paid and retained. On public work these displace the lien regime entirely, which is the single most consequential fact in the region.

StatutoryFree to read

Insurance Code ch. 151 subch. C - Texas construction anti-indemnity provisions

State of Texas

indemnity clauses in construction contractsadditional insured requirementsrisk transfer down the subcontract chain

Changes how a Texas subcontract should be read and priced. A broad indemnity here is usually unenforceable, so pricing risk into it prices something that will not bite, and relying on it upstream relies on nothing.

StatutoryFree to readCurrent through the 88th Legislature; enacted by Acts 2007, 80th Leg., Ch. 885 (H.B. 2278), effective 1 April 2009

Texas Business and Commerce Code, Chapter 601 (Home Solicitation Transactions)

Texas Legislature

consumer transactions solicited away from the merchant's place of businessthe three business day right to cancelthe cancellation notice required beside the signaturethe detachable notice of cancellation formprohibited terms in consumer contractsvoidness and damages for non-compliance

The most under-appreciated exposure on the residential side. A roofing or remodelling contractor who signs at the customer's kitchen table after knocking on the door is inside this chapter, the notice and the detachable form are both mandatory and both size-specified, and the consequence of getting the form wrong is that the contract is void and no compensation is recoverable for services already performed. It is a formatting requirement with a total-loss failure mode.

StatutoryFree to read

Texas construction licensing regime - state trade licences and municipal contractor registration

Texas Department of Licensing and Regulation; Texas State Board of Plumbing Examiners; Texas municipalities

state trade licensingmunicipal contractor registrationwho may pull a permit

The commonest wrong assumption made about Texas by anyone arriving from a licence state. The answer is genuinely 'it depends on the city', and saying that precisely, with the trades carved out, is more useful than any national summary.

StatutoryFree to readCurrent through the 88th Legislature

Texas Government Code, Chapter 2253 (Public Work Performance and Payment Bonds)

Texas Legislature

performance and payment bonds on public workbond thresholds by contract value and entity typeperfection of payment bond claimsthe sworn statement of account accompanying a bond claimnotice deadlines for direct and indirect bond claimantssuit on a payment bond

Public property cannot be liened, so on public work the bond is the only route and the sworn statement of account is the document that carries the claim. Its content requirements, that all known lawful offsets, payments and credits have been allowed and that retainage not yet due is stated, are what make the account a distinct deliverable rather than a stack of invoices with a covering letter.

StatutoryFree to readCurrent through the 88th Legislature; amended by Acts 2023, 88th Leg., Ch. 291 (S.B. 1768) and Ch. 441 (H.B. 2022)

Texas Property Code, Chapter 27 (Residential Construction Liability)

Texas Legislature

residential construction defect claimspre-suit notice and inspection rightsoffers of settlementthe construction defect disclosure required in residential contracts

Relevant to the contract rather than the invoice, but it belongs in the same pack because the notice is a drafting requirement on the residential contract and its omission carries a civil penalty. The inspect and cure route it advertises is worth more to the contractor than the notice costs to include.

StatutoryFree to readCurrent through the 88th Legislature; Subchapters C, D, E and L substantially rewritten by Acts 2021, 87th Leg., Ch. 690 (H.B. 2237), effective 1 January 2022

Texas Property Code, Chapter 53 (Mechanic's, Contractor's, or Materialman's Lien)

Texas Legislature

mechanic's, contractor's and materialman's liensowner's reserved funds and retainagenotices of claim for unpaid labour, materials and retainagelien affidavits and their deadlinesresidential construction project procedureshomestead contract formalitiesstatutory waiver and release of lien or payment bond claimbills-paid affidavitspayment bonds on private work

This is the single most load-bearing authority for the Texas invoice. Three things in it have no equivalent in most states: the owner's statutory reserve is a duty imposed on the owner rather than a contract term, the waiver and release forms are prescribed by statute rather than negotiated, and the notice clocks run from the calendar month of the work rather than from the invoice date.

Contract administration in Texas, in detail

Health and safety

The statutory safety duties on site and the bodies that enforce them.

StatutoryFree to read

Health & Safety Code ch. 756 subch. C - trench safety

State of Texas

trench excavation safety on public workseparate pay items for trench protectiongeotechnical disclosure to bidders

Rare in being a safety statute that dictates the shape of the bill. Also a useful tell: a Texas public bid schedule with deep excavation and no trench safety item is either non-conforming or the excavation is shallower than the estimator thinks.

StatutoryFree to read

Labor Code ch. 406 (workers' compensation coverage) with 28 TAC s.110.110

State of Texas; Texas Department of Insurance, Division of Workers' Compensation

workers' compensation subscription and the non-subscriber optionemployer liability exposurecoverage certification on public building contracts

Texas is the outlier state and the consequence runs both ways: a contractor can lawfully carry no cover on private work, while a governmental client will refuse to pay without a current certificate for every worker on site.

StatutoryFree to read

Texas Regulatory Consistency Act (2023) and its effect on municipal construction ordinances

State of Texas

state preemption of municipal regulationlocal construction ordinancesworker rest break and local labour rules

Held as a gap precisely because the answer is unstable. The right behaviour here is to check and to say what was checked; a confident answer either way could put a worker at risk or expose a contractor to an obligation it never priced.

Cost control

What governs valuation, variation, retention and the reporting of cost against value.

StatutoryFree to readRules current as adopted; guidance publications carry their own revision dates

34 Texas Administrative Code Sections 3.291 (Contractors) and 3.357 (Nonresidential Real Property Repair, Remodeling, and Restoration), with the Comptroller's published contractor and homebuilder guidance

Texas Comptroller of Public Accounts

administrative interpretation of contractor sales taxwhat distinguishes a lump-sum from a separated contract in practiceinvoicing and progress billing as evidence of contract structuretaxability of labour on new construction, residential repair and nonresidential repairresale certificates issued by contractors to suppliersreal property services purchased by homebuilders
StatutoryFree to readCurrent through the 88th Legislature

Texas Government Code, Chapter 2251 (Payment for Goods and Services)

Texas Legislature

payment periods for governmental entitiesflow-down of public payments to subcontractorsinterest on overdue public paymentsdisputed invoice notice and withholding limits on public workvendor's right to suspend performanceattorney fees in public payment actions
StatutoryFree to readCurrent through the 88th Legislature; substantially amended by Acts 2021, 87th Leg., Ch. 635 (H.B. 692), effective 15 June 2021

Texas Government Code, Chapter 2252, Subchapter B (Retainage Held by Governmental Entity)

Texas Legislature

retainage on public works contractsretainage caps by contract valueflow-down limits on retainage percentagesrelease of retainage at substantial and final completioninterest-bearing retainage accountsexemptions from the public retainage regime

This is where a Texas payment application diverges most sharply from a Florida one on public work: the retainage rate is capped by the value of the contract, the cap binds per line of the schedule of values as well as in total, and the percentage cannot increase as it passes down the chain. All three have to be checked before the schedule of values is signed, because that is the document retainage is computed from for the life of the job.

StatutoryFree to readCurrent through the 88th Legislature

Texas Property Code, Chapter 162 (Construction Payments)

Texas Legislature

construction payments and loan receipts as trust fundsbeneficiaries of construction trust fundsmisapplication of trust funds and its penaltiesconstruction accounts for residential homestead workaccount records for construction accounts

This is what stands behind the warranty printed on every statutory waiver form, that the signer will use the funds to pay its own labour and suppliers. It converts a payment application from a commercial document into a document with criminal consequences, and the construction account requirement for homestead work above a low threshold is a standalone offence that catches contractors who paid everyone properly out of the wrong bank account.

StatutoryFree to readCurrent through the 88th Legislature; Section 28.0091 added by Acts 2023, 88th Leg., Ch. 533 (H.B. 3485), effective 1 September 2023

Texas Property Code, Chapter 28 (Prompt Payment to Contractors and Subcontractors)

Texas Legislature

payment periods on private construction contractsflow-down of payment to subcontractorsinterest on overdue private paymentsgood faith dispute withholding limitsright to suspend performance for nonpaymentunsigned owner-directed change orders
StatutoryFree to readCurrent through the 88th Legislature

Texas Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax)

Texas Legislature

sales and use tax on constructionthe lump-sum and separated contract distinctioncontractor as consumer or as seller of incorporated materialstaxable real property repair and remodelling and its residential exclusionresale and exemption certificateswhat may be excluded from the sales price if separately identifiedexempt entity contracts

The Texas tax posture is decided by the structure of the contract and evidenced by the face of the invoice, which is why this authority shapes a document template rather than only a tax return. A contractor who itemises materials on a lump-sum job to look transparent has converted itself into a retailer of those materials and owes tax it never collected.

StatutoryFree to readCurrent through the 88th Legislature

Texas Tax Code, Chapter 321 (Municipal Sales and Use Tax Act)

Texas Legislature

municipal sales and use taxthe cap on combined local sales tax at a locationrate increments and how local rates are adopted

Held mainly for the cap, which is the only local tax figure that can be stated as a constant. The actual rate at a jobsite is a lookup, not a rule, which is why the corresponding canon rule is must_verify with a null threshold.

De facto standardPaywalled

Contractor work-in-progress schedule and percentage-of-completion reporting

Construction accounting and surety practice (AICPA construction industry guidance; individual surety requirements)

work in progress reportingpercentage of completionover and under billingsurety and lender reporting
Cost control in Texas, in detail

Quantity surveying

The methods of measurement and the conventions that decide what a quantity means.

Common practiceFree to read

City standard construction specifications and details

Texas municipalities (Houston, San Antonio, Austin, Dallas, Fort Worth and others)

municipal standard specificationsmeasurement and payment on city workcity bid item lists and standard details

On municipal work this displaces both TxDOT and any national convention. It is also the direct answer to 'what should the bid schedule look like' on a city job: it should look like the city's own item list.

Estimating

The data sources and bid rules an estimate is built against.

StatutoryFree to read

Texas sales and use tax for contractors: 34 TAC s.3.291 (Contractors) and s.3.357 (Real Property Repair, Remodeling, Restoration; Real Property Maintenance), with publication 94-116

Texas Comptroller of Public Accounts

sales and use tax on constructionlump-sum versus separated contractstaxability of repair and remodelling labour

An estimating authority, not a bookkeeping one. Get this wrong on a Texas commercial refurbishment and the bid is short by tax on the entire labour content, which no amount of good measurement recovers.

Document control

How information is named, issued, and proved to have been issued.

StatutoryFree to read

Occupations Code ch. 1001 (engineering practice) and ch. 1051 (architectural practice), with Civil Practice & Remedies Code s.150.002 (certificate of merit)

Texas Board of Professional Engineers and Land Surveyors; Texas Board of Architectural Examiners; State of Texas

sealing of drawings and specificationswho may design public workclaims against design professionals

Two boards, two acts and one procedural statute that together decide who may seal a Texas drawing and whether a design claim can even be filed. The certificate-of-merit requirement changes the sequence and cost of pursuing a designer and is easy to miss until it is too late.

StatutoryFree to readCurrent through the 88th Legislature; regulatory functions reorganised in 2019

Texas Occupations Code, Chapter 1301 (Plumbing License Law)

Texas Legislature

plumbing licensing in Texasinformation required on plumbing proposals, invoices and contractsthe obligation to give the customer a document on completion of a job

Included because it is the only trade in Texas with a statutory requirement about what appears on the face of an invoice, and because it also requires a document to be handed over on completion even where nothing is charged, which is the part contractors miss on warranty callbacks. Texas licenses no general construction contractor, so there is no state licence number to carry on a general contractor's invoice.

Sustainability

Energy, carbon and environmental performance requirements and the schemes that certify them.

StatutoryFree to read

Construction General Permit TXR150000 (Texas Pollutant Discharge Elimination System)

Texas Commission on Environmental Quality

construction stormwater authorisationpollution prevention planssite notices and inspection records

Texas administers the federal programme itself, so the forms, the filing system and the thresholds are the state's rather than the EPA's. The inspection records kept under the plan are the evidence if anything is questioned, which makes this a site records obligation as much as an environmental one.

StatutoryFree to read

Texas building energy performance standards (Health & Safety Code ch. 388; 34 TAC s.19.53)

State Energy Conservation Office, Texas Comptroller of Public Accounts

statewide energy code adoptionresidential and commercial energy standardslocal amendment and more stringent local codes

The one code Texas genuinely does set statewide, which makes it the exception proving the rule about the building code. It is also the clearest example in this whole region of a number that secondary sources get wrong with total confidence.

Statutory, de facto, or habit

Statutory means the law says so and a regulator can stop your job. A de facto standard binds you because the contract adopts it, which in practice is just as binding and is easier to argue about. Common practice is what the market does with nothing published behind it, and the honest thing to do with those is record them as convention rather than cite a standard that does not exist.

Knowing the rule is not the same as meeting it on a Tuesday

AEC Stack keeps the paperwork side of the register handled: registrations, insurance certificates, payment notices with their deadlines, and the documents a buyer asks for before they will let you start. Across Canada, built deepest for Ontario.

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