Texas Construction Contract Law
Why Texas Needs Its Own Construction Contract Edition.
Residential construction, homestead projects, construction-defect claims, consumer cancellation rights and licensed trades can all be affected by Texas-specific statutes and regulatory requirements. A Texas construction agreement needs to understand both the work being carried out and the law that applies to it.
That is why Construction Companion combines contractor experience, attorney-developed terms and a dedicated Texas legal layer in the relevant agreements.
Texas requirements checked: October 10, 2026
Texas Property Code §27.007 — Required Construction-Defect Disclosure
For written contracts subject to Chapter 27, Texas requires a disclosure statement in the contract in 10-point boldface type or the computer equivalent. The statutory notice explains that a construction-defect claimant generally must give the contractor the Chapter 27 notice not later than the 60th day before filing suit or initiating arbitration and must provide the contractor an opportunity to inspect and cure when requested. That is a concrete example of why Texas-specific contract wording matters.
Official Texas source ↗
Texas Property Code §53.255 — Residential Construction Disclosure Statement
Before certain residential construction contracts are executed, an original contractor must deliver the owner the disclosure statement prescribed by Texas Property Code §53.255. Texas therefore has state-specific residential construction paperwork requirements that need to be considered in a Texas contract edition.
Official Texas source ↗
Texas Homestead & Mechanic's Lien Requirements
Texas Property Code §53.254 makes homestead lien paperwork unusually specific. To fix a lien on a homestead, the contractor and owner must execute a written contract before labor or materials are furnished; if the owner is married, both spouses must sign; and the contract must be filed with the county clerk where the homestead is located. Chapter 53 also contains separate notice and filing rules for residential and nonresidential lien claims. Additional constitutional requirements can apply to homestead improvements.
Official Texas source ↗
Texas Business & Commerce Code Chapter 601 — Three-Business-Day Cancellation
Chapter 601 applies to qualifying consumer transactions personally solicited away from the merchant's place of business, including covered sales of goods or services for more than $25. Where it applies, the consumer may cancel no later than midnight of the third business day after signing and the merchant must provide the statutory cancellation notice and forms. It is not a blanket three-day rule for every Texas construction contract.
Official Texas source ↗
Texas General Contractors — No Statewide GC License
Texas does not require an ordinary general contractor to hold a statewide general-contractor license. That does not mean the project is regulation-free: specific trades can require state licensing, and local jurisdictions can require contractor registration, permits and inspections. The contract should identify the actual trade, project and location rather than assuming one licensing rule covers every Texas job.
Official Texas source ↗
Texas Electrical Contractor Licensing
Texas electrical contracting is regulated by the Texas Department of Licensing and Regulation. An electrical contractor license requires, among other things, a licensed Master Electrician of Record and required liability insurance. Effective September 1, 2026, Texas also adopted the 2026 National Electrical Code as the state electrical code, with a limited state exception for certain outdoor HVAC outlets.
Official Texas source ↗
Texas HVAC / Air-Conditioning Contractor Licensing
Texas also licenses air-conditioning and refrigeration contractors. TDLR distinguishes Class A and Class B licenses, endorsements and insurance requirements. Effective September 1, 2026, the program adopted the 2024 International Residential, Mechanical and Fuel Gas Codes and the 2024 Uniform Mechanical Code, with state reference adjustments. Work permitted or started before September 1, 2026, may be completed under the 2021 editions.
Official Texas source ↗
Texas Homestead Improvement Warning
Property Code §41.007 requires the ownership-risk warning for covered improvements to an existing residence in conspicuous type of at least 10-point bold or equivalent. Covered binding arbitration provisions also have presentation requirements.
Read §41.007 ↗
Texas Private Construction Payment Rules
Property Code Chapter 28 addresses qualifying written payment requests, downstream payments, overdue interest and good-faith disputes. Under Section 28.003, qualifying good-faith disputes may permit withholding up to 110% of the disputed difference for detached single-family residences, duplexes, triplexes and quadruplexes, versus up to 100% for other real property. These limits are not general permission to withhold every payment; statutory exceptions and project-specific terms matter.
Read Chapter 28 ↗
Texas Plumbing Is Regulated Separately
Plumbing licensing is overseen by the Texas State Board of Plumbing Examiners. Responsible Master Plumber requirements include supervision, required insurance, permits and inspections for contracted plumbing work.
Read TSBPE guidance ↗
Texas Rules Change — So the State Edition Matters
Construction statutes, licensing rules, adopted codes and required wording can change. Construction Companion's state-specific model allows the Texas edition to be reviewed and updated as Texas requirements develop.
Local Texas Requirements Still Matter
Texas state law is only part of the picture. City, county, permit, inspection, registration and project-specific requirements may also apply in Houston, Dallas, Austin, San Antonio, Fort Worth and other Texas jurisdictions. Contractors remain responsible for the local rules governing each project.