Need a Home Services Contract in Texas? AroundWire Can Help

In Texas, home services contracts—covering areas such as repairs, remodeling, maintenance, and installation—are shaped by both state statutes and local ordinances. Contractors performing work valued at $10,000 or more must often be registered with the Texas Department of Licensing and Regulation (TDLR), and certain trades (electrical, plumbing, HVAC) require specific state-issued licenses. Written contracts are strongly recommended and sometimes mandated, especially for projects involving home improvements or repairs. Contracts should clearly outline the scope of work, materials, start and completion dates, payment schedules, and procedures for change orders. Texas law requires contractors to provide a notice of the homeowner’s right to cancel within three business days for door-to-door sales. Insurance is a key requirement: general liability coverage is standard, and workers’ compensation is advised, though not mandatory unless specified by the client. Payment terms typically include an initial deposit, with subsequent payments tied to project milestones; state law prohibits contractors from requesting more than 10% or $1,000 (whichever is less) as a down payment for disaster recovery services. Dispute resolution often favors mediation or arbitration clauses to avoid litigation. Texas’ Prompt Payment Act influences timelines for payments to contractors and subcontractors. Local building codes and permitting requirements may also apply, and failure to comply can result in contract voidance or penalties.