Need a HVAC / Ventilation Services Contract in Michigan? AroundWire Can Help

In Michigan, contracts for HVAC and ventilation services typically require contractors to hold a current Michigan Mechanical Contractor’s License, with specific endorsements for HVAC work as mandated by the Department of Licensing and Regulatory Affairs (LARA). Contracts must comply with state and local building codes, including energy efficiency standards set by the Michigan Uniform Energy Code and relevant municipal ordinances. Insurance requirements are stringent, often mandating general liability coverage (commonly $1 million per occurrence) and workers’ compensation insurance per state law. Prevailing wage laws may apply for public projects, especially in certain municipalities despite statewide repeal, so local ordinances should be reviewed. Standard payment terms are net 30 days, but retainage of 5–10% is common for larger or public-sector projects until satisfactory completion. Risk factors include liability for code compliance and potential exposure to penalties for unlicensed work; indemnification clauses protecting owners from contractor errors are standard. Contracts frequently specify dispute resolution through mediation or arbitration before litigation, in line with Michigan’s preference for alternative dispute resolution. Change order procedures must be clearly defined to comply with state consumer protection statutes, particularly for residential work. Additionally, Michigan law requires clear disclosure of start and end dates, scope of work, and cancellation rights in residential contracts. Local procurement norms may also require bonding for public sector contracts.