Construction Services for Contracting in Houston: What to Know Before You Build

Construction Services for Contracting in Houston: What to Know Before You Build

By Patrick Martin, CEO of Marwood Construction

Hiring a construction services company in Houston can feel like a leap of faith. You’re investing hundreds of thousands—maybe millions—of dollars into a project that will shape your home, business, or portfolio. And yet, far too many clients dive in with incomplete information or get caught chasing the lowest bid, only to regret it halfway through.


Whether you’re renovating a commercial space, building a custom home, or managing a real estate development, understanding the hidden risks associated with construction contracting in Houston is essential to protecting your investment.


Why Construction Projects Go Off the Rails

Houston's booming market and unpredictable weather make it one of the most dynamic—and challenging—construction environments in the U.S. While demand is high, so are the risks. And they don’t always come from obvious sources like labor shortages or material costs. Many of the most common problems are avoidable with the right planning and a properly vetted contractor.


Here are some key red flags to look out for when choosing a construction services company in Houston:


1. Don’t Be Fooled by the Lowest Bid

Getting multiple quotes is smart. But fixating on price alone is dangerous.

The lowest bid often masks gaps in scope, vague specifications, or unrealistically low allowances for finishes. This is how underbidding happens—and it almost always leads to change orders, missed deadlines, and budget overruns.


Pro tip: Ensure every bid you receive is based on the same set of detailed plans and specifications. Otherwise, you’re not comparing apples to apples.


2. Commingled Funds? Walk Away

Trust is key in construction—but so is transparency.

Reputable Houston contractors maintain separate accounts for each project to track how funds are being spent. When contractors comingle your project funds with operating expenses or other jobs, it clouds the financial picture and introduces unnecessary risk. Even if no wrongdoing occurs, the lack of clarity can damage the relationship irreparably.


3. The “Handshake Deal” is Outdated—and Dangerous

In today’s market, verbal agreements are a recipe for conflict.

Every project should be backed by a comprehensive written contract that includes clear definitions of scope, payment schedules, timelines, insurance requirements, and dispute resolution clauses. Don’t rely on trust alone—insist on legal protections.


4. Beware of Cold Calling Contractors

If someone is knocking on your door with a pitch—literally or metaphorically—be cautious. Unsolicited outreach through telemarketing, flyers, or door-to-door sales is often tied to high-pressure tactics and poorly documented agreements.

Instead, look for contractors with a strong local reputation, verifiable references, and visible project portfolios.


The Business Risks You Don’t See

Construction issues fall into two major categories: contracting issues and business issues. Most people look out for the first—missed deadlines, budget overruns, poor workmanship. But the business side is just as important.


1. Material and Labor Shortages Still Affect Houston

Houston has struggled with skilled labor shortages since the 2008 recession and again after Hurricane Harvey and the pandemic. This has made timelines less predictable, even for reputable builders.


If a contractor promises unrealistic delivery dates or seems to underprice labor in a hot market, that’s a red flag.


2. Low Selection Allowances Are a Pricing Trap

Contractors sometimes lowball allowances for finishes and fixtures to keep their bids competitive. Once the real selection process begins, the client realizes the true cost—and it’s often far higher than anticipated.


To avoid this trap, request a breakdown of quantities, unit pricing, and quality grade of all included items. This makes your comparison more meaningful and budget more accurate.


3. Poor Communication Leads to Costly Mistakes

Communication breakdowns cause more disputes in construction than any other factor. Clear expectations, regular updates, and honest feedback loops must be built into the working relationship from the start.


Choose a contractor who prioritizes transparency, reporting, and regular client check-ins—not just slick sales talk.


Avoid the “Underbid and Change Order” Trap

When a contractor intentionally underbids to win a job, expect one of two things to happen:


  1. You get bombarded with change orders mid-project.
  2. The contractor cuts corners on labor, materials, or schedule.

Both scenarios end badly—for you and the contractor. In some cases, disputes escalate to legal action. In others, you’re left with a subpar result that’s difficult or expensive to fix.


Managing Risk Starts Before You Sign

The most effective way to avoid construction disasters is through early, honest vetting of your general contractor. Here’s how:



Wrapping Up: Don’t Leave Your Project to Chance

Construction is never without risk—but most risks can be managed with the right partner. By identifying warning signs early and prioritizing communication, documentation, and ethical practices, you’ll dramatically improve your odds of success.

If you’re planning a residential or commercial project in Houston, make sure your contractor is part of the solution—not the problem.


About the Author

Patrick Martin, CEO of Marwood Construction, is a certified general contractor with more than 45 years of experience in residential and commercial construction. Known for his strategic planning, technical knowledge, and ethical leadership, Patrick has helped hundreds of Houston clients navigate complex builds with confidence. He regularly shares insights and best practices at marwoodconstruction.com.


Interested in partnering with a trusted construction services company in Houston?

Visit Marwood Construction to schedule a consultation and explore how experience, integrity, and planning can turn your vision into reality.


FAQs: Construction Services in Houston


1. What should I look for when hiring a construction services company in Houston?

You should look for licensing, insurance, proven experience, financial transparency, and clear communication. Also, request detailed contracts and references from past clients.


2. Why do construction costs vary so much between contractors?

Costs often vary due to differences in material allowances, labor quality, scope interpretation, and overhead. Be cautious of low bids—they may lead to hidden costs or change orders later.


3. How can I protect myself from contractor fraud or financial mismanagement?

Only work with reputable builders who use separate project accounts and provide financial transparency. Avoid contractors who don’t offer written contracts or resist documentation.


4. What’s the difference between a general contractor and a construction services company?

A general contractor typically oversees daily site operations and subcontractors, while a full-service construction company may offer project management, design-build, budgeting, and consulting under one roof.


5. Is it better to choose a local Houston construction company over a national firm?

Yes. Local contractors typically have stronger ties to local suppliers, better understanding of Houston building codes, and more accountability due to their community reputation.