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

HVAC/ventilation service contracts in Tennessee typically require that contractors hold an active Tennessee Mechanical Contractor’s License, with appropriate classifications for HVAC work, as mandated by the Tennessee Board for Licensing Contractors. Contracts must comply with state and local building codes, including adherence to the International Mechanical Code as adopted by Tennessee. Insurance requirements generally include commercial general liability and workers’ compensation coverage, with minimum limits often specified by public agencies or larger private clients. Prevailing wage requirements may apply to public projects, and contractors must register with the Tennessee Department of Revenue if collecting sales tax on materials. Payment terms usually range from net 30 to net 60 days, with retainage (up to 5%) common on public works. Contracts often include provisions for change orders, performance guarantees, and detailed scopes of work to mitigate scope creep. Dispute resolution preferences in Tennessee lean toward mediation or arbitration before litigation, and contracts may specify venue within the state. Risk factors include liability for code violations, failure to obtain permits, or non-compliance with environmental regulations (e.g., handling of refrigerants per EPA standards). It is customary to include clauses addressing termination for cause or convenience and to require proof of licensure and insurance before commencing work. Local statutes, such as the Tennessee Prompt Pay Act, influence payment schedules and remedies for late payments.