From Tech Hub to Hill Country: Working With Texas Contractors as a California Transplant

A residential construction contract should be tailored to the project and Texas law. At a minimum, consider including:

• Correct legal names, entity names, assumed names, addresses, and contact information
• Detailed scope tied to plans, specifications, selections, and exhibits
• Express exclusions and allowances
• Fixed-price, cost-plus, or other pricing method
• Draw schedule tied to objectively verifiable progress
• Texas statutory reserve and residential disclosure requirements
• Written change-order procedure
• Start conditions, milestone dates, and delay-notice procedure
• Responsibility for permits, inspections, HOA approval, and utilities
• Jobsite supervision and use of subcontractors
• Protection of occupied areas, cleanup, access, and security
• Insurance requirements and verification
• Owner or independent-inspector access
• Correction of nonconforming work
• Substantial completion, punch list, and final completion
• Warranties, manuals, and closeout records
• Default, notice, opportunity to cure, suspension, and termination
• Dispute resolution, venue, governing law, and attorney-fee provisions

Do not simply forward a California form. Have a Texas construction attorney review a contract appropriate to the project and property.

Do not assume that a Texas project will be faster or slower than a comparable California project. The schedule depends on design completion, permitting, inspections, site conditions, weather, contractor workload, trade availability, owner selections, material lead times, utility coordination, and changes in scope.

Ask the contractor to identify project-specific long-lead items rather than relying on a generic eight-to-twelve-week estimate. If the contractor will divide crews among several projects, require the proposed staffing and sequencing to be reflected in the schedule. A crew's unexplained absence should not be characterized as 'normal' when it conflicts with the agreed schedule.

Build the schedule around the actual project

Regional averages are less useful than a project-specific schedule. Before signing, request a written schedule identifying anticipated start, major milestones, long-lead selections, permit and inspection assumptions, owner-decision deadlines, and substantial and final completion targets. Ask which items are binding obligations and which are estimates.

Allow for design revisions, permitting, inspections, excavation and site conditions, weather, utility coordination, material lead times, specialty-trade availability, owner selections, and change orders. Include a process requiring prompt written notice when a delay affects a milestone. Do not schedule a move, lease termination, or furniture delivery from an unexplained best-case completion date.

Once construction is underway, the day-to-day rhythm of a Hill Country project will feel different from what you are used to. Here is what to expect and how to manage it.

Project communication: Establish the reporting cadence before work begins. Depending on project size and whether the owner is local, this may include scheduled site meetings, written weekly updates, dated photographs, an updated schedule, decision logs, and prompt notice of delays or concealed conditions. The absence of a dedicated project manager does not eliminate the contractor's responsibility to provide the communication promised in the contract.

Change orders: In California, change orders are formal documents with pricing, signatures, and a process [4]. In the Hill Country, change orders are more likely to start with a conversation. "While we are at it, do you want us to install that ceiling fan box now?" is how changes begin. Discuss proposed changes verbally if useful, but do not authorize or allow changed work to begin until a written change order identifies the revised scope, added or deducted price, allowance or unit-price treatment, schedule effect, and any design or permit consequence. The owner and contractor should sign or otherwise authorize the change using the method specified in the contract before the changed work begins.

Crew scheduling: A temporarily empty site does not necessarily indicate a problem, but the contractor should communicate material schedule changes. Compare actual progress with the written schedule and request an explanation when planned work does not occur. Repeated unexplained absences, missed milestones, or removal of labor or materials may require written notice under the contract.

Protecting your existing systems: If the renovation touches existing plumbing, electrical, or HVAC, read our guide to Hill Country home maintenance for specific considerations about older septic systems, well pressure, and electrical panels that California transplants often underestimate.

Closeout and the Punch List

When the contractor declares the project substantially complete, walk the property together and create a written punch list of remaining items. In the Hill Country, the punch list conversation is typically informal  a walkthrough with a clipboard, not a formal inspection report. Document the punch list in a dated written record, identify responsibility and target completion for each item, and have both parties acknowledge it using the method specified in the contract. A text or email can help document the discussion, but it should not replace any formal closeout procedure required by the contract. The contract should specify when final payment is due and what conditions must be met. Some contractors may not request final payment until the punch list is addressed, but this varies and should not be assumed. Do not assume that 'substantial completion' means every detail is finished.

Before final payment

As a condition of final payment, Texas Property Code Section 53.259 generally requires the original contractor to provide a final bills-paid affidavit stating that the contractor has paid each person who furnished labor or materials, or identifying unpaid parties and amounts. The owner should reconcile this affidavit with earlier subcontractor lists, disbursement statements, notices, and releases before releasing final funds.

Consider retaining an independent inspector

Municipal or county inspections address code and permit requirements; they are not a complete quality-control program for the owner. Depending on project size, an owner may retain an independent qualified inspector for milestones such as pre-pour, framing and mechanical rough-in, pre-drywall, waterproofing, substantial completion, or final completion. Coordinate inspection rights and timing in the contract so an inspection can occur before work is concealed or the related draw is released.

Texas does not use California's statewide general-contractor licensing system or general home-improvement down-payment cap, but construction payments remain subject to contracts and multiple Texas statutes. Payment risk should be managed through written draw terms, progress verification, statutory reserve and withholding procedures, disbursement statements, construction trust-fund requirements, and properly timed releases.

For a covered California home-improvement contract, the down payment generally may not exceed $1,000 or 10 percent of the contract price, whichever is less [4]. Texas does not impose the same general statewide home-improvement down-payment cap used in California. Deposit and mobilization requests vary, but a large advance payment shifts substantial performance and insolvency risk to the owner. Tie payments to documented costs or objectively verifiable progress, investigate statutory trust-fund and construction-account requirements, and have the payment terms reviewed for the specific project.

Texas Property Code Chapter 162 treats certain construction payments as trust funds and imposes duties on trustees. In addition, Section 162.006 generally requires a contractor that enters into a written contract exceeding $5,000 to improve a residential homestead to maintain a construction account at a financial institution [9]. These requirements are technical and should be reviewed with Texas counsel and the project's accountant.

Under Texas Property Code Section 28.002, an owner generally must pay the properly payable amount within 35 days after receiving a written payment request for properly performed work or qualifying materials, less amounts lawfully withheld. Section 28.006 permits a written single-family contract to extend the owner-payment deadline, but only to a date before the 61st day after the request. Other exceptions and withholding rules may apply [10].

What to insist on:

• A written contract that specifies the payment schedule, milestones, and the dollar amount tied to each milestone.
• Lien releases matched to payment status. Use the statutory Texas lien-release forms and match the form to the payment status. A conditional progress release should accompany a progress payment when funds have not yet been received. An unconditional release should be used only after the covered funds have actually been received and cleared. Obtain releases from the contractor and the identified subcontractors or suppliers covered by the draw, as appropriate. Do not demand or rely on an unconditional release before payment has been received [8].
• Texas statutory reserve understanding  Texas Property Code Section 53.101 generally requires the owner, during the work and for 30 days after completion, to reserve 10 percent of the contract price or, if there is no contract price, 10 percent of the reasonable value of the work. This statutory reserve protects certain lien claimants and is not merely optional contractual retainage. It is measured against the contract price or value of the work; the statute does not simply say to deduct 10 percent from each individual invoice. The statutory reserve is distinct from any additional contractual retainage. Because completion, notices, withholding, residential status, and homestead rules interact, owners should have a Texas construction attorney or title professional establish the payment and release procedure before the first draw.
• Verification of general liability insurance and workers' compensation coverage. Most private Texas employers may elect whether to carry workers' compensation coverage. If a contractor does not carry it, injured-worker and premises-liability risk can become more complicated, but homeowner liability is not automatic and depends on facts such as negligence, control, employment relationships, and applicable insurance. Verify the contractor's workers' compensation coverage category through the Texas Department of Insurance. The result may show coverage through a carrier, certified self-insurance, governmental self-insurance, registered non-subscriber status, or an unknown status requiring additional inquiry. Also ask how workers employed by subcontractors are covered [13].

Disclosure statement requirement (� 53.255). For a residential construction project, Texas Property Code Section 53.255 requires the original contractor to provide the owner with the statutory disclosure statement before the residential construction contract is executed. The disclosure warns the owner about lien exposure, statutory reserve duties, payment risks, and recommended safeguards. Failure to provide it may have statutory consequences, although it does not automatically invalidate a lien.

Subcontractor and supplier list (� 53.256). Unless the owner signs the statutory written waiver, Texas Property Code Section 53.256 requires the original contractor to furnish, before construction begins, a written list containing the name, address, and telephone number of each subcontractor and supplier the contractor intends to use. The contractor must provide an updated list no later than 15 days after a subcontractor or supplier is added or deleted. Failure to provide the list does not automatically invalidate a lien.

Disbursement statement with each draw

Under Texas Property Code Section 53.258, when an original contractor requests payment from the owner or the owner's lender under a residential construction contract, the contractor must provide the owner with a disbursement statement. At minimum, it must identify the name and address of each person who subcontracted directly with the original contractor and whom the contractor intends to pay from the requested funds. The statute also specifies how and when the statement must be delivered [8].

For significant renovation or new construction, discuss builder\'s-risk or other course-of-construction coverage with the owner's insurance professional before work begins. Also disclose the renovation and any vacancy or change in occupancy to the current insurer. Coverage, exclusions, vacancy definitions, and required endorsements are policy-specific; do not assume either the homeowner's policy or the contractor's general-liability policy protects the structure, materials, or owner against every construction loss [14].

For more on the property-specific systems that might be part of your project, see our guides on wells and septic systems in the Hill Country, both of which involve specialized contractors with their own licensing and costs.

Even with the best contractor and the best intentions, construction projects hit rough patches. When they do, the path to resolution in Texas looks different than it does in California.

Step one: talk to the contractor directly. In the Hill Country, the first step is often a face-to-face conversation. Sit down with the contractor, on the job site or over coffee, and explain the issue clearly. Many problems at this stage are miscommunications about scope, timeline, or materials. In the author's experience, a direct conversation can resolve many disputes before they escalate.

Step two: document everything. If the conversation does not resolve the issue, put your understanding in writing. A simple email or text summarizing what was agreed to creates a record that is useful if the dispute escalates.

Step three: invoke the contract. Your written contract should specify a dispute resolution process. Many Texas construction contracts call for mediation before litigation. The Texas Attorney General accepts consumer complaints and may use complaint information to monitor conduct or bring civil cases in the public interest. The office does not provide the complainant with legal advice or represent the complainant in an individual construction dispute. A submitted complaint may be public, may not produce further contact, and does not establish that an investigation is pending [15].

Texas Residential Construction Liability Act procedure. Before filing suit or initiating arbitration over a construction defect, a claimant generally must provide the contractor written notice by certified mail at least 60 days beforehand. The notice must describe the construction defects in reasonable detail and provide discoverable evidence depicting the nature and cause of the defects and the nature and extent of repairs necessary to remedy them, including available expert reports, photographs, and video or audio recordings [11]. After a proper written request, the contractor may be entitled to inspect the property, with the current statute allowing as many as three inspections during the applicable 35-day period. The contractor may make a written settlement offer by the 60th day after receiving the notice. The RCLA does not impose a universal mandatory pre-suit settlement conference. Section 27.0041 contains a post-suit mediation procedure that may apply to claims exceeding $7,500 when a timely motion is filed. Because failure to follow the RCLA can limit recovery or delay a case, consult a Texas construction attorney before sending the notice, repairing or demolishing disputed work, or filing suit or arbitration.

Required contract notice under Section 27.007. Texas Property Code Section 27.007 requires a written residential construction contract subject to the RCLA to contain a prescribed 10-point boldface notice advising the owner of the Act's procedures. Failure to include the notice may expose the contractor to a statutory civil penalty. Have counsel confirm that the current statutory language appears in the contract.

Step four: mechanic's lien considerations. If a contractor or subcontractor has not been paid and files a mechanic's lien against your property, a recorded lien claim can cloud title and may delay or prevent a sale or refinance until the claim is released, bonded around, resolved, or otherwise handled to the satisfaction of the title company and lender. Texas lien deadlines vary according to claimant type, project type, required notices, the last date labor or materials were furnished, and any completion, termination, or abandonment. Some residential notice deadlines occur in the second month, while affidavit deadlines are calculated differently. Do not rely on a generalized article calendar. A property owner or claimant who receives or anticipates a lien notice should contact a Texas construction attorney immediately.

Step five: know the homestead protection. If your property is your homestead, Texas Property Code Section 53.254 generally requires a written contract entered into before labor or materials are furnished, signed by the owner and, if the owner is married, by both spouses, and filed with the county clerk to fix a valid lien. A claimant might still record an affidavit, but failure to satisfy the homestead requirements can affect the lien's validity or enforceability. Obtain Texas legal advice immediately if a homestead lien issue arises [8].

Texas Forum and Governing-Law Clauses

For a covered construction contract concerning Texas real property that is entered into or renewed on or after September 1, 2025, Texas Business & Commerce Code Section 272.001 provides that a provision selecting another state's law, courts, or arbitration forum is void as against public policy. When a venue provision is void, an action arising from the contract generally must be brought in Texas in the county where the property is located unless the parties agree to another venue after the dispute arises. Section 272.002 contains exclusions for certain agreements, so the chapter's application should be evaluated for the particular contract [12].