How to Evaluate HVAC Contractors for State Facilities

To evaluate an HVAC contractor for a Texas state facility, confirm four things before you look at price: an active TDLR air conditioning and refrigeration contractor license of the right class and endorsement, insurance and bonding that match the contract value, a workable plan for VetHUB subcontracting, and documented experience with occupied, mission-critical buildings. A short, consistent checklist applied to every bidder makes the comparison faster and easier to defend in the procurement file.

This guide is written for facility managers, procurement staff and VetHUB coordinators at state agencies, and for prime contractors who need a mechanical subcontractor that will hold up to agency review.

Step 1: Verify the TDLR license, class and endorsements

In Texas, contractors who install, repair or maintain air conditioning, refrigeration or heating systems must hold a license from the Texas Department of Licensing and Regulation (TDLR). Look up every bidder in the TDLR License Search and record the license number, status and expiration date. Then check two details that are easy to miss:

• License class. According to TDLR, a Class A license covers equipment of any size. A Class B license is limited to cooling systems of 25 tons and under and heating systems of 1.5 million BTU/hour and under. Central plants, large rooftop units and chillers in state buildings often exceed the Class B limits.
• Endorsements. TDLR offers Environmental Air Conditioning, Commercial Refrigeration, and Process Cooling or Heating endorsements. Match the endorsement to the scope: comfort cooling is different from a cold-storage room or a process cooling loop.

Licenses renew every year, so check status again close to award, not only at bid opening.

Step 2: Check insurance and bonding against the contract value

TDLR sets minimum general liability insurance for licensed contractors. For a Class A license, the minimum is $300,000 per occurrence, $600,000 aggregate and $300,000 products and completed operations. For Class B, the minimums are $100,000, $200,000 and $100,000. These are licensing floors. Your agency's contract terms may require more, so compare the certificate of insurance with your solicitation, not just with the TDLR minimums.

For public work, Texas Government Code Chapter 2253 requires the prime contractor on a contract with a governmental entity to provide:

• a performance bond when the contract exceeds $100,000
• a payment bond when the contract exceeds $25,000. The threshold is $50,000 when the governmental entity is a municipality.

Each bond is in the amount of the contract and must be issued by a corporate surety. Ask bidders for a letter from their surety that confirms their bonding capacity before you shortlist them, so a low bid doesn't fail at contract execution.

Step 3: Confirm VetHUB status and the subcontracting plan

The Texas Comptroller's historically underutilized business program now operates as VetHUB (Veteran Heroes United in Business), which certifies businesses owned and controlled by service-disabled veterans. According to the Comptroller's VetHUB FAQ, the current rules took effect May 12, 2026. Under those rules:

• agencies must consider requiring a subcontracting plan for contracts expected to exceed $100,000
• a plan is required when subcontracting with VetHUBs is probable
• bidders document either that they will self-perform the work or that they made a good-faith effort to subcontract, which includes notifying two VetHUBs for each subcontracting opportunity

When a plan is required, a bid without one can be treated as non-responsive, so review the plan with the same care as the price sheet. If a bidder claims VetHUB certification, verify it in the CMBL and VetHUB directory search. For a walkthrough of that search, see our earlier post, How to Find a VetHUB-Certified HVAC Contractor in Texas.

Step 4: Look at who actually performs the work

The licensing and subcontracting questions lead to a practical one: who will be on site? A general contractor that subcontracts all mechanical work adds a layer between your facility team and the technicians. Ask each bidder:

• Which scopes it self-performs and which it subcontracts, by trade
• How it supervises partner trades, such as electrical and plumbing, and who signs off on their work
• Whether its technicians hold EPA Section 608 certification at the right level. EPA Section 608 requires certification for technicians who service equipment containing regulated refrigerants. Type I covers small appliances, Type II covers high-pressure equipment and Type III covers low-pressure equipment.
• Who the named project manager and lead technician are, and how much field experience each has

Step 5: Evaluate experience with occupied, critical buildings

State facilities rarely shut down for mechanical work. Labs, records rooms, IT closets, correctional and health facilities and public-facing offices all need cooling to continue during a replacement. Strong bidders can explain in detail how they would do the following:

• Phase the work around occupancy and agency operating hours
• Provide temporary cooling or power, such as spot coolers, portable chillers or generators, if equipment must come offline
• Manage refrigerant recovery and keep the records your environmental staff may ask for
• Commission and hand over the system with as-built drawings, controls points and training for your maintenance staff

Ask for references from comparable public or institutional buildings, and ask those references about schedule, change orders and how problems were communicated, not just whether the job was finished.

A simple scoring checklist

To keep evaluations consistent, score each bidder on the same items and file the evidence with the scoresheet:

1. TDLR license active, correct class and endorsement (pass/fail)
2. Insurance certificate meets the solicitation (pass/fail)
3. Surety letter covers the required bonds (pass/fail)
4. VetHUB subcontracting plan complete, if required (pass/fail)
5. Self-performance and supervision of partner trades (scored)
6. Critical-facility approach: phasing, temporary cooling, commissioning (scored)
7. References from comparable buildings (scored)

Frequently asked questions

Can a Class B contractor work on a state building?

Yes, if the equipment is within Class B limits: 25 tons of cooling or 1.5 million BTU/hour of heating. Larger systems need a Class A license.

When is a VetHUB subcontracting plan required?

Agencies consider it for contracts expected to exceed $100,000, and require it when subcontracting with VetHUBs is probable. Check your solicitation for the specific requirement.

What bonds are required on state HVAC projects?

Under Government Code Chapter 2253, a performance bond is required over $100,000 and a payment bond over $25,000 (over $50,000 for municipalities). Your contract may add requirements.

How do I verify a contractor's license?

Use the TDLR License Search. Enter the license number or business name and confirm the status, expiration date and endorsements.

About Zebrix Group Inc.

Zebrix Group Inc. is an SBA-certified service-disabled veteran-owned small business (SDVOSB) and a Texas VetHUB-certified vendor (VID 21829539), active on the CMBL and SAM.gov. We hold TDLR Air Conditioning and Refrigeration Contractor license TACLA00169073C and self-perform HVAC and mechanical work. We deliver complete MEP scopes, with electrical and plumbing handled by licensed partner trades under Zebrix management. We also rent generators, spot coolers, portable chillers and trailer-mounted AC. Based in The Woodlands, TX, we serve Greater Houston and Texas, led by Brandon Walker's 35+ years of field experience. Review our capabilities or the capability statement, or contact us to discuss an upcoming project.

About the author: Zachary (Zack) Butler is the founder and CEO of Zebrix Group Inc. and a U.S. Navy veteran. He builds Pulsix AI, one system for a building owner's buildings, work, money and risk.

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