10 Questions You Must Ask Before Hiring a General Contractor in Texas

Selecting a general contractor for your commercial construction project is one of the most critical decisions you will make. This partner will be responsible for your budget, your timeline, and the ultimate quality and safety of your new facility. In Texas, where the construction landscape is as vast and varied as the state itself, performing thorough due diligence isn’t just good practice—it’s essential for protecting your investment.

To help you navigate this process, we’ve compiled a list of ten essential questions you must ask before signing a contract. A reputable contractor will not only have ready answers but will welcome the opportunity to demonstrate their qualifications and professionalism.

1. Are you properly licensed and insured in Texas?

Texas doesn’t require state-level general contractor licensing for most work, but many cities and counties have their own requirements. Verify the contractor holds all necessary local licenses for where your project is located.

More critically, confirm they carry adequate insurance. General liability insurance protects against property damage and injuries. Workers’ compensation covers their employees. Builder’s risk insurance may be appropriate for large projects. Ask for certificates of insurance and verify coverage amounts are appropriate for your project scope. Under-insured contractors create liability risks that fall back on you when problems occur.

2. Who will actually be managing our project day-to-day?

The person selling you on the company during the proposal phase often isn’t the person you’ll work with during construction. Ask specifically who your project manager will be, what their experience and qualifications are, and how accessible they’ll be throughout the project.

Meet the actual project manager before signing contracts. Their communication style, responsiveness, and technical knowledge directly affect your experience. A great company with a poor project manager assigned to your work creates frustrations regardless of the firm’s overall reputation.

3. What is your approach to project scheduling and timeline management?

Every contractor promises to complete on time. The question is whether they have actual systems and processes to make it happen or just hopeful intentions.

Ask how they develop schedules, what tools they use to track progress, how they manage subcontractor coordination, and what happens when delays occur. Request to see sample schedules from previous projects. Contractors with sophisticated scheduling practices can articulate their approach clearly. Those winging it give vague answers about “keeping things moving.”

4. How do you handle change orders and unforeseen conditions?

No project goes exactly as planned. Unforeseen conditions, owner-requested changes, and field issues requiring modifications are normal. How contractors handle these situations determine whether changes are managed professionally or become sources of conflict and cost disputes.

Ask about their change order process. How are changes priced? What documentation is provided? What approval is required before change order work proceeds? How do they handle situations where you disagree with proposed change order costs? Clear processes prevent misunderstandings and give you confidence that changes won’t become adversarial.

5. What is your subcontractor qualification and management process?

General contractors don’t perform all the work themselves. They coordinate subcontractors for specialized trades. The quality and reliability of those subs directly affect your project outcome.

Ask how they select and vet subcontractors. Do they use the same qualified subs repeatedly or hire whoever’s cheapest? How do they manage subcontractor performance and quality? What happens if a sub’s work is deficient? Contractors with strong sub-relationships and management processes deliver better results than those constantly scrambling with whoever’s available.

6. Can you provide detailed references from recent similar projects?

Every contractor claims satisfied clients. Verify those claims by speaking directly with recent project owners whose work is comparable to yours.

Don’t accept a generic list of references. Ask for specific contacts from projects completed in the last two years that match your project type and scope. Prepare questions about schedule performance, communication, change order handling, quality, and whether they’d hire the contractor again. References who are genuinely satisfied speak enthusiastically and specifically. Those who hesitate or give careful measured responses are telling you something important.

7. What quality control and safety programs do you maintain?

Quality and safety aren’t accidents. They result from deliberate programs and consistent enforcement. Contractors serious about both have documented programs, trained staff, and track records demonstrating commitment.

Ask about their quality control processes. How do they verify work meets specifications? What inspections occur? How are deficiencies identified and corrected? For safety, ask about their Experience Modification Rate (EMR), safety training programs, and incident tracking. Low EMRs indicate good safety performance. Comprehensive programs demonstrate professionalism.

8. What are your payment terms and schedule?

Payment structure affects cash flow and creates leverage to ensure satisfactory performance. Understanding terms before signing prevents surprises and disputes later.

Ask how payments are structured. Monthly progress payments based on work completed? Milestone-based? What documentation is required for payment requests? What’s the retention percentage held until completion? How long after project completion is retention released? What warranties or guarantees cover the work? Clear payment terms aligned with work progress protect both parties.

9. How do you handle disputes or problems during construction?

Even with the best contractors, disagreements sometimes occur about scope, quality, schedule, or cost. How those disputes get resolved determines whether they’re minor bumps or project-derailing conflicts.

Ask about their approach to dispute resolution. What’s the escalation process when field-level disagreements occur? Are they willing to include mediation or arbitration provisions in contracts? How have they handled significant disputes on previous projects? Contractors confident in their work and committed to client satisfaction have clear, reasonable dispute resolution approaches.

10. What is your warranty policy and post-construction support?

The relationship shouldn’t end the day you get the keys. A reputable general contractor will stand by their work. Ask for a clear explanation of their warranty period (typically one year) and the process for submitting a warranty claim. How responsive are they to post-construction issues?

Red Flags That Should Concern You

Certain responses to these questions should raise immediate concerns about whether a contractor is right for your project.

Reluctance to provide detailed references or references from only years ago suggests recent clients aren’t satisfied. Vague answers about project management, scheduling, or quality control indicate lack of sophisticated systems. Pushback against verification of insurance or licensing raises questions about compliance. Pressure to sign quickly without time for due diligence is a classic warning sign. Significantly lower bids than all other qualified contractors often indicate missing scope, planned shortcuts, or unrealistic pricing that leads to change order battles.

Trust your instincts. If something feels off during the vetting process, it probably is. The time to walk away is before you’re contractually committed, not after problems emerge.

FAQs

What is the difference between a general contractor and a construction manager?

A general contractor typically enters the project after the design is complete, providing a fixed price to build what is specified (Design-Bid-Build). A construction manager often joins the team earlier, collaborating with the owner and architect during the design phase to provide input on cost and constructability, and then manages the construction itself.

Why is the lowest bid not always the best choice?

A significantly low bid can be a warning sign. It may indicate that the contractor missed something in the scope, uses lower-quality materials and subcontractors, or plans to make up the difference with numerous change orders. The best value comes from a competitive price backed by a strong safety record, quality craftsmanship, and a history of on-time, on-budget completion.

How long does the bidding process typically take for a commercial project?

For a traditional public bid, the process from advertising the project to awarding a contract can take anywhere from four to eight weeks, or even longer depending on the project’s complexity and the organization’s procurement rules.

What is a “lien waiver,” and why is it important?

A lien waiver is a document from a subcontractor or supplier stating that they have received payment and waive any future rights to place a lien on your property. Collecting these with each payment is crucial. It protects you from having to pay twice if the general contractor fails to pay their subcontractors.

How can we verify a contractor’s insurance is adequate for our project?

Request certificates of insurance directly from their insurance agent showing general liability, workers’ compensation, and any other relevant coverage. Verify coverage amounts are appropriate for your project scope. For large projects, $2-5 million in general liability is typical. Confirm policies are current and will remain in force throughout your project. Your attorney or insurance advisor can help evaluate whether coverage is adequate for your specific risk profile.

Building The Foundation of a Successful Partnership

The general contractor relationship isn’t transactional. You’re selecting a partner who will be deeply involved in your project for months or longer. Their decisions, performance, and problem-solving affect your outcomes daily.

Taking time to ask the right questions, verify credentials thoroughly, check references carefully, and evaluate cultural fit prevents expensive mistakes that are difficult to undo once projects begin. The contractor who looks perfect on paper but can’t answer these questions satisfactorily isn’t the right choice regardless of their marketing materials or pricing.

Your project deserves a contractor who can truly deliver. Use these questions to identify which candidates meet that standard and which are better left to compete for someone else’s work.

 

Original Post: 10 Questions You Must Ask Before Hiring a General Contractor in Texas