Inside This Report

CHAPTER 01

Start Here: What This Guide Will Help You Do

You hired a contractor. You agreed on the work. Now it’s time to pay.

But what paperwork should you ask for? And what should you keep?

If you don’t know, start here. You don’t have to know construction terms to use this guide.

Start with these three steps

1. Find the part that matches where you are.

   Haven’t started the work? Read “Before Work Starts.” Already making payments? Read “Before You Make a Payment.” Getting ready to make the last payment? Read “Before You Write That Final Check.”

2. Ask questions before you pay.

   Ask who will do the work, what each payment covers, and what paperwork you should receive. Write down the answers. If something is unclear, ask for an explanation you understand.

3. Keep everything in one place.

   Use a folder, an envelope, or a folder on your phone. Save your agreement, changes to the job, bills, payment records, photos, messages, and signed forms.

What about that lien waiver?

That may be a new term to you. We’ll explain it in its own chapter, along with the different types and the questions to ask about them.

We’ll also help you make a list of the people and companies involved in your job and keep track of your payments.

Next: Find out who will actually be working on your home.

CHAPTER 02

Who’s Working on Your Home?

The person who gives you the estimate may not be the person doing all the work.

Your contractor may bring employees, hire other companies, or order materials from a supplier. That can be a normal part of a project. The first step is knowing who’s involved.

Who’s who?

Your contractor: The person or company you hire to do the job. This is usually your main contact.

An employee: Someone who works for the contractor’s company.

A subcontractor: A separate person or company hired by your contractor to do part of the job. For example, your remodeling contractor might hire an electrician.

A supplier: A business that provides materials, such as lumber, roofing, or cabinets.

Step 1: Ask these questions

• “Will your own employees do the work, or will you use subcontractors?”
• “Which companies will work on my home?”
• “Who will supply the materials?”
• “Who is responsible for paying each company—you or me?”
• “Who do I call if I have a question or a problem?”

Ask for the answers in writing. An email is an easy way to keep them with your project records.

Step 2: Make a simple contact list

For each company, write down:

• The company’s name.
• A contact person and phone number.
• What work or materials it will provide.
• Who is responsible for paying it.

Keep this list with your agreement and payment records.

Step 3: Keep the list up to date

Ask your contractor to tell you when another company joins the job or replaces one already listed.

If someone arrives and you don’t know who they are, ask your contractor before letting them start.

Why this matters

Knowing who’s involved helps you ask the right people about the work, payments, and paperwork. A contact list is a starting point. It does not prove that anyone has been paid.

Your next step: Ask your contractor for the names of the companies involved in your job. If the contractor works alone and buys the materials directly, write that down too.

CHAPTER 03

Before Work Starts

Before anyone starts working on your home, make sure you and the contractor agree on the job.

Don’t rely on “We talked about it.” Put the details in writing and keep a copy.

Step 1: Write down exactly what you’re buying

Read the written agreement. Can you tell what the contractor will do—and what is not included?

• What work will be done?
• Which materials will be used? Include brands, sizes, or colors when they matter.
• Who will buy the materials?
• Who will handle cleanup and haul away the waste?
• What is the total price? Which amounts are only estimates?
• When is the work expected to start and finish?
• Will permits or inspections be needed, and who will arrange them?

If a detail matters to you, ask to have it written into the agreement before you sign.

Step 2: Agree on the payment schedule

A payment schedule says how much you pay and when each payment is due.

If a deposit is requested, ask what it covers. For later payments, ask what work or material delivery each payment is tied to. Get the answers in writing.

• How much is due before work starts?
• What does that first payment cover?
• What needs to happen before the next payment is due?
• How much is left for the final payment?
• What receipts and other paperwork will you receive?

Add up the scheduled payments. Make sure they match the agreed price.

There is no deposit percentage recommended by this guide for every job. If the requested payment makes you uncomfortable, ask questions and get advice before agreeing to it.

Step 3: Decide how changes will be handled

You may want different materials. The contractor may find damage that wasn’t visible at first. Either can change the price or the schedule.

Ask for a written change before the extra work begins. It should say:

• What is being added, removed, or changed.
• How much the price goes up or down.
• Whether the finish date or payment schedule changes.

Have both sides approve the change in writing and keep a copy.

Step 4: Talk about the paperwork now

Use the company contact list from Chapter 2. Ask who will pay the subcontractors and suppliers and what payment records and waiver paperwork you should expect.

Read the lien-waiver chapter before deciding how to use those forms. If you are unsure which paperwork fits your project, ask a qualified Texas attorney.

Step 5: Save your starting records

• Keep the signed agreement and its attachments.
• Save the contractor’s contact details and the list of other companies involved.
• Take photos of the work area before the job starts.
• Keep a record of any payment you make and what it covers.

Before you move on: Can you explain what you’re buying, what it costs, and when you will pay? If the answer is no, get those details cleared up first.

CHAPTER 04

Before You Make a Payment

A bill arrives. Your contractor asks for the next payment.

Before you pay, pull out your agreement and payment schedule. Check what this payment is for.

Step 1: Match the bill to your agreement

Check the company name, project address, amount, and description of the work or materials.

• Is this the payment you agreed to make at this stage?
• Does the amount match your payment schedule?
• Are extra charges explained by changes you approved in writing?
• Have your earlier payments been credited?

If something doesn’t match, ask for an explanation and a corrected bill if needed.

Step 2: Look at what the payment covers

If the payment is tied to finished work, walk through that work with the contractor. If it is for delivered materials, check what arrived.

For a deposit or an order that hasn’t arrived, ask what you are paying for and request the supporting order details or receipt.

You don’t have to pretend you know construction. Ask the contractor to show you what has been done and explain anything you don’t understand.

Step 3: Ask about the payment paperwork

Ask what receipt, payment record, and lien-waiver paperwork you will receive for this payment. Keep track of which company each document comes from.

A paid invoice and a lien waiver are different documents. Don’t assume one takes the place of the other.

The next chapter explains the different waiver types. Read it before using a form, and get legal help if you are unsure which form applies.

Step 4: Check who you are paying

Make sure the payment goes to the person or company named in your agreement, or follow a payment arrangement you have clearly confirmed and documented.

If someone asks you to change the payment recipient or bank details, call your contractor using a phone number you already know. Confirm the change before sending money.

If a subcontractor or supplier asks you to pay them directly, don’t assume that payment will reduce what you owe your contractor. Clarify the arrangement in writing and get advice if there is a dispute.

Step 5: Pay in a way you can track

Use a payment method that leaves a record, such as a check or an electronic payment with a confirmation.

Save the receipt and transaction details. If you pay cash, ask for a signed receipt showing who received it, the date, the amount, the project address, and what it covered.

A payment record shows money changed hands. Keep the other project paperwork too.

Step 6: Update your payment log

After each payment, write down:

• The date and amount.
• Who received the payment.
• What work or materials it covered.
• The check number or transaction reference.
• Which receipts and forms you received.
• Any paperwork still expected and who will provide it.

Subtract your payments from the agreed price, including approved changes. Compare your remaining balance with the contractor’s records.

If something is wrong

Write down the problem and discuss it with your contractor. Keep the messages and any photos.

This checklist does not change your contract or tell you when you may legally withhold a payment. If you disagree about what is due, get advice promptly from a qualified Texas attorney.

Before you move on: Know what this payment covers, confirm who receives it, and save the records.

CHAPTER 05

What Is a Lien Waiver?

A lien is a legal claim against property for an unpaid debt. Construction lien rights depend on legal requirements; an unpaid bill does not automatically make a valid lien.

A lien waiver gives up the signer’s lien rights for the work and payment it covers. It may release other payment claims too.

Two words to know

Conditional: Depends on payment. The Texas check-based form takes effect when the check is properly endorsed and paid by the bank. Verify payment before relying on it.

Unconditional: States payment has been received and releases rights without a payment condition. Texas prohibits requiring it before the signer receives the stated amount in good funds.

Four forms—not one

• Conditional progress: Payment during the job, subject to payment conditions.
• Unconditional progress: Payment during the job already received.
• Conditional final: Last payment, subject to payment conditions.
• Unconditional final: Final payment already received.

Progress forms contain exceptions. Final forms are broader. Use the applicable Texas statutory form, signed by the claimant or an authorized representative. A contractor’s signature does not waive a separate company’s rights.

Step 1: Match the form to the payment

Read the heading. Is this a payment during the job or the last payment to this particular company? Has that company received the money, or is payment still being made?

Don’t guess from the word “waiver” alone. Ask a qualified Texas attorney which form fits if you are unsure, including when paying electronically.

Step 2: Check the details

• Is the correct company named?
• Is this your project and property address?
• Does the amount match the payment?
• What work, dates, or attached bills does it cover?
• Are there exceptions or unpaid items?
• Is it complete, dated, and signed by the right person?

Keep the completed form with the matching bill and payment record. Don’t rewrite the legal wording yourself.

Step 3: Keep track of each company separately

Use your contact list from Chapter 2. Ask what paperwork you will receive from your contractor and the other companies involved. Track what has arrived and what is still missing.

Your next step: Ask your contractor, “Which waiver paperwork will I receive for this payment, and which company will sign each form?”

Texas law reference: Texas Property Code, Chapter 53, especially Sections 53.281, 53.283, and 53.284. Checked October 17, 2026. The summaries above are explanations, not substitute waiver forms.

CHAPTER 06

Before You Write That Final Check

The job looks finished. You’re ready to put the tools, dust, and noise behind you.

Before you close out the project, take a little time to review the work, the balance, and the paperwork.

Step 1: Walk through the job together

Bring your agreement and approved changes. Ask the contractor to show you the completed work.

• Does the work match what you agreed to buy?
• Are there unfinished items or things that need attention?
• Have cleanup and waste removal been handled as agreed?
• Have you received any promised operating instructions or warranty information?

Write down remaining items and agree in writing on who will handle them and when. Take photos. This list is often called a “punch list.”

A walkthrough does not replace an inspection by a qualified professional.

Step 2: Check the final balance

Start with the agreed price. Add or subtract approved changes. Subtract payments already made.

Compare your total with the final bill. Ask about anything that doesn’t match.

Step 3: Ask for the bills-paid affidavit

For a Texas residential construction contract, the original contractor must provide a final bills-paid affidavit when final payment is tendered. This sworn statement identifies whether everyone supplying labor and materials has been paid in full. If not, it must list the unpaid amounts and people owed.

Read it. A bills-paid affidavit is not the same as separate companies’ lien waivers. Get legal help about any unpaid item.

Step 4: Review each company’s waiver paperwork

Use Chapter 5 to distinguish conditional and unconditional final waivers. A conditional form depends on payment; an unconditional form states payment has been received. Do not require an unconditional waiver before the signer receives the stated amount in good funds.

Match the company, work, payment, and signature. Get advice about missing documents or any existing lien claim.

Step 5: Check the Texas reserve requirement

Section 53.101 generally requires an owner to reserve 10 percent during lien-eligible work and for 30 days after completion. Ask a qualified Texas attorney how this applies before releasing the remaining money. Don’t assume collecting waivers removes this duty.

Step 6: Keep your completed project folder

• Your signed agreement and approved changes.
• The final bill and complete payment log.
• Receipts and payment confirmations.
• The bills-paid affidavit and waiver paperwork.
• Photos, inspection records, and permits, if applicable.
• Warranties, instructions, and company contact details.

Keep a backup. You may need these records for a repair question, warranty issue, or future sale.

Before you move on: Review the work. Reconcile the bill. Check the paperwork and any funds that must stay reserved.

Texas law reference: Texas Property Code, Chapter 53, Sections 53.101, 53.259, 53.283, and 53.284. Checked October 17, 2026. This chapter is general education, not a complete statement of Texas lien law.

CHAPTER 07

What If Something Goes Wrong?

The contractor stops showing up. The bill doesn’t match the agreement. Someone says they haven’t been paid.

Start with the facts. Keep your records together and take the next step that fits the problem.

Step 1: Deal with immediate danger first

If someone is in immediate danger, call 911. Keep people away from exposed wiring, unstable construction, or other unsafe areas. Don’t try to inspect or fix something dangerous yourself.

Step 2: Write down what happened

Make a short list of dates and events. Include:

• What the contractor agreed to do.
• How much you paid and when.
• What work was completed and what is unfinished.
• What the problem is and when you noticed it.
• Who you contacted and what they said.

Save photos, bills, payment confirmations, emails, and text messages. Keep the original records and make a backup.

Step 3: Contact the contractor in writing

If it is safe to do so, explain the problem calmly and ask for a written response. Say what you want clarified or corrected.

After a phone call, send a short message summarizing what you understood. Ask the contractor to confirm it.

Keep your messages factual. Avoid threats or claims you cannot support.

Step 4: Get help with payment or lien disputes promptly

If a subcontractor or supplier says they are unpaid, or you receive a lien notice or court papers, keep the document and the envelope. Note when you received it.

Speak with a qualified Texas attorney promptly. Legal deadlines and payment duties can depend on the situation. Don’t assume a claim is valid, invalid, or harmless because you already paid your contractor.

Ask for advice before withholding a disputed payment, paying another company directly, signing a settlement, or hiring someone to take over unfinished work. A complaint to an agency is not a substitute for responding to legal papers.

Step 5: Choose the right place for help

• For legal rights, notices, or a disputed contract: Contact a Texas attorney who handles construction or real estate matters.
• For suspected theft or fraud: Contact local law enforcement and describe the facts. An unfinished job alone does not establish a crime.
• For suspected deceptive business practices: You can submit a consumer complaint to the Texas Attorney General.
• For an unexpected electronic payment or suspected payment scam: Contact your bank or payment provider promptly. Ask what options are available; recovery is not guaranteed.

The Attorney General’s complaint process helps the office monitor consumer issues. It does not mean the office will investigate your individual complaint, recover your money, or give you legal advice. Complaints are generally public; don’t include bank account numbers or other sensitive personal information.

Texas Attorney General: Complaint Information →

If you found the contractor through JCTC

Let JCTC know about your concern through the contact information on our website. Share the company name and a factual summary. JCTC can receive your feedback, but does not provide legal representation or guarantee a refund or resolution.

Your next step: Gather the records. Write down the facts. Get the right help without ignoring notices or deadlines.

Consumer complaint reference: Texas Office of the Attorney General. Checked October 17, 2026. This chapter is general education, not legal advice.

CHAPTER 08

Forms and Checklists

Here’s the paperwork in one place. Read the packet instructions before choosing a legal form. Use the record sheets to keep your project organized.

Step 1: Download your record sheets

Download the PDF packet above. Read the instructions on page 6. Print the contact sheet on page 7, payment log on page 8, or checklist on page 9. Fill them out by hand. The payment log separately tracks conditional waivers, payment clearance, and unconditional waivers.

Step 2: Find the Texas waiver forms

The four statutory waiver forms are in Section 53.284 of the Texas Property Code. These buttons open the official law page where you can read the form wording. They are source links, not downloadable fill-in forms.

On that page, find 53.284, then the subsection listed on the button. If you are unsure which form applies, ask a qualified Texas attorney. Read Chapter 5 before using any waiver.

Step 3: Keep the paperwork together

Match each completed document to the right company, bill, and payment. Save the signed version—not just the blank form.

Keep this guide handy

Save a copy with your project records. Come back to the chapter that matches your next step.

The habit to remember: Ask questions. Keep records. Understand the paperwork before you rely on it.

Waiver source: Texas Property Code, Section 53.284, reviewed for Chapter 5 on October 17, 2026. The packet provides the four statutory waivers and recordkeeping sheets. It is not legal advice or a complete set of documents for every project.