Need a HVAC Contract in Kentucky? AroundWire Can Help

In Kentucky, HVAC service contracts—covering installation, maintenance, and repair—typically require contractors to hold a valid Kentucky HVAC license, as regulated by the Department of Housing, Buildings and Construction. Contracts must adhere to Kentucky Revised Statutes (KRS) Chapter 198B and related administrative regulations, which set forth licensing, permitting, and inspection requirements. Standard agreements specify clear scopes of work, compliance with local building codes, and adherence to safety standards such as OSHA. Insurance obligations generally include commercial general liability and workers’ compensation coverage, with minimum limits often stipulated by state agencies or project owners. Payment terms commonly follow a milestone or progress payment structure, with retainage (usually up to 10%) withheld until satisfactory completion and inspection. Kentucky law prohibits "pay-if-paid" clauses in public contracts, but "pay-when-paid" may be enforceable in private contracts. Risk factors include liability for code violations, warranty obligations (often one year by default), and penalties for project delays. Dispute resolution preferences often favor mediation or arbitration before litigation, as encouraged by state procurement norms. Prevailing wage requirements may apply to public projects under the Kentucky Prevailing Wage Act. Contracts should also address change order procedures, lien rights, and compliance with environmental regulations regarding refrigerants and hazardous materials. Overall, clear documentation and strict adherence to regulatory and insurance requirements are critical to successful HVAC contracting in Kentucky.