Need a HVAC Contract in Colorado? AroundWire Can Help

In Colorado, HVAC service contracts—whether for installation, maintenance, or repair—are governed by a combination of state statutes, local codes, and industry standards. Contractors must hold a valid Colorado Mechanical Contractor license and, depending on locality, may require additional municipal or county licensing. Compliance with the Colorado Mechanical Code and relevant energy efficiency standards is mandatory, and technicians typically need EPA Section 608 certification for refrigerant handling. Contracts often stipulate detailed scopes of work, adherence to OSHA safety regulations, and clear project timelines. Insurance requirements are stringent: contractors must carry general liability insurance (commonly $1 million per occurrence) and workers’ compensation coverage. Bonding may also be required, particularly for public or larger commercial projects. Payment terms in Colorado usually include progress payments tied to milestones, with retainage (typically up to 10%) withheld until final acceptance. Prompt pay statutes apply, mandating timely payments by public entities. Risk allocation provisions often address delays, change orders, and unforeseen site conditions; indemnification clauses are common but must comply with Colorado’s anti-indemnity statutes, which limit indemnity for another party’s sole negligence. Dispute resolution preferences generally favor mediation or arbitration before litigation. Additionally, prevailing wage laws may apply to public contracts. All contracts should reference applicable state and local codes and specify warranty obligations, typically one year for workmanship and materials.