Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In Texas, home improvement contractors are subject to various regulations to ensure consumer protection and fair business practices. Contracts for home improvement must be clear and detailed, including the scope of work, materials to be used, contractor's responsibilities, payment terms, completion time, insurance requirements, and provisions regarding mechanic's and materialmen's liens. Texas Property Code requires contractors to provide a written contract for any home improvement project over a certain amount. This contract must be signed by both parties. Additionally, contractors must be aware of the Texas Mechanic's Lien laws, which allow contractors, subcontractors, and material suppliers to file a lien on a property if they are not paid for their services or materials. It is important for contractors to follow the specific procedures and timelines set forth in the Texas Property Code to enforce these liens. Failure to adhere to these regulations can result in legal disputes and financial penalties.