Need a HVAC Contract in Illinois? AroundWire Can Help

In Illinois, HVAC service contracts—covering installation, maintenance, or repair—are shaped by state and local regulatory frameworks. Contractors must hold a valid Illinois mechanical contractor’s license, and certain municipalities (notably Chicago) may require additional local licensing or registration. Compliance with the Illinois Mechanical Code, local building codes, and applicable energy efficiency standards (such as the Illinois Energy Conservation Code) is mandatory. Contracts typically stipulate that all HVAC technicians possess EPA Section 608 certification for refrigerant handling. Insurance requirements are stringent: contractors are generally expected to carry commercial general liability insurance (often $1–2 million in coverage), workers’ compensation, and, where applicable, additional umbrella policies. Payment terms frequently include retainage (often 10%) until final inspection and acceptance, with prompt payment statutes governing public projects. Prevailing wage laws apply on public works per the Illinois Prevailing Wage Act. Contracts must specify clear scopes of work, timelines, and detailed change order procedures. Risk allocation is addressed through indemnification clauses and clear delineation of responsibilities for code compliance and permitting. Dispute resolution typically favors mediation or arbitration before litigation, and Illinois law governs most contract interpretations. Familiarity with the Illinois Contractor Prompt Payment Act and the Home Repair and Remodeling Act (for residential work) is important, as these statutes influence lien rights, notice requirements, and consumer protections.