Contractor Disputes After Hurricane Damage: Protecting Yourself from Scams and Bad Work
In the aftermath of major hurricanes and severe storms, Houston and surrounding areas are inundated with contractors offering emergency repair services. While many are legitimate, others are opportunistic scammers who prey on desperate homeowners. These fraudulent contractors may demand large upfront payments, perform substandard work, fail to obtain required permits, or abandon projects mid-completion. Understanding how to identify legitimate contractors and protect yourself is essential.
Before hiring any contractor, verify their credentials. Check that they hold a valid Texas contractor’s license through the Texas Department of Licensing and Regulation (TDLR). Request their license number and verify it independently on the TDLR website. Legitimate contractors will provide this information without hesitation. Be wary of anyone who claims they do not need a license or who pressures you to hire them immediately without allowing time for verification.
Obtain written estimates from at least three contractors before making a decision. The estimates should be detailed and itemized, describing the specific work to be performed, materials to be used, timeline for completion, and total cost. Be suspicious of estimates that are significantly lower than others — this often indicates the contractor plans to cut corners or use substandard materials. Conversely, be cautious of estimates that are significantly higher without clear justification.
Never pay the full contract price upfront. Texas law limits the amount contractors can require as a down payment. For residential construction, contractors generally cannot require more than one-third of the contract price upfront, and they cannot require payment for work not yet performed. Structure payments to align with project milestones — for example, one-third upon signing the contract, one-third upon completion of the roof, and the final third upon final inspection and approval.
Ensure the contractor obtains all required permits before beginning work. Permits ensure that work complies with building codes and that inspections are conducted at appropriate stages. If a contractor claims permits are unnecessary or will be obtained later, this is a red flag. Unpermitted work can create liability issues, affect your ability to sell the property, and may not be covered by your homeowner’s insurance.
If a contractor performs substandard work, abandons the project, or fails to pay subcontractors (who may then file liens against your property), you have legal remedies. You can pursue a breach of contract claim, file a complaint with the TDLR, or seek recovery through the Texas Construction Liability Insurance Fund. If the contractor has caused damage to your property, you may also have a negligence claim.
If you are dealing with a contractor dispute or have concerns about work performed on your property after a hurricane, contact Nixon Law PLLC. We represent homeowners in construction disputes and can help you protect your rights and recover damages if a contractor has acted improperly.
About the Author: Jonathon G. Nixon is the managing attorney of Nixon Law PLLC, a Houston-based litigation firm focused on property insurance disputes, construction defects, personal injury, and commercial litigation. Contact Nixon Law PLLC at (713) 482-1523 or jnixon@nixon-law.com.