Need a HVAC Contract in Arkansas? AroundWire Can Help

In Arkansas, HVAC service contracts—covering installation, maintenance, and repair—are subject to a blend of state regulations and local ordinances. Contractors must hold a valid HVAC/R license from the Arkansas Department of Labor and Licensing, with technicians often required to maintain EPA Section 608 certification for refrigerant handling. Contracts typically mandate proof of general liability insurance (commonly $1 million per occurrence) and workers’ compensation coverage if employees are involved. Prevailing wage requirements may apply to public projects, and contracts often reference adherence to the Arkansas Mechanical Code and relevant municipal building codes. Common legal stipulations include clear scope of work definitions, timelines, and warranty terms (often one year for labor and manufacturer’s warranty for parts). Payment terms usually follow a milestone or progress billing structure, with retainage (typically up to 10%) withheld until final acceptance. Arkansas law limits the use of “pay-if-paid” clauses and generally favors prompt payment statutes for public contracts. Dispute resolution preferences lean toward negotiation and mediation before litigation, as outlined in contract terms. Contractors face risk factors such as liability for code compliance, timely completion, and proper permitting. Failure to maintain licensing or insurance can result in contract termination or civil penalties. Indemnification clauses are common, as are requirements for performance and payment bonds on larger public projects, following Arkansas’s Little Miller Act.