Need a HVAC Contract in Alabama? AroundWire Can Help

In Alabama, HVAC service contracts—whether for installation, maintenance, or repair—are shaped by both state regulations and industry standards. All contractors must hold a valid license from the Alabama Board of Heating, Air Conditioning, and Refrigeration Contractors, which requires proof of technical competency, insurance, and bonding. Contracts typically require evidence of general liability insurance (commonly $1 million per occurrence) and workers’ compensation coverage if employees are involved. Alabama law mandates that contracts over $50,000 may require performance and payment bonds, particularly for public projects. Payment terms often follow a milestone or progress-based schedule, with retainage (usually up to 10%) held until final inspection and acceptance. State law requires prompt payment on public projects, usually within 30 days of invoice approval. Contracts must comply with local building codes and may reference the Alabama Energy and Residential Codes. Risk allocation provisions commonly address liability for code compliance, workplace safety, and unforeseen site conditions. Dispute resolution typically favors mediation or arbitration before litigation, in accordance with Alabama’s Uniform Arbitration Act. Additionally, contracts should specify warranty periods (often one year for workmanship), and may include indemnification clauses. Failure to comply with licensing or code requirements can result in contract voidance or penalties. Local norms also emphasize clear scope-of-work definitions and detailed change order procedures to manage expectations and control project costs.