Need a HVAC Contract in Michigan? AroundWire Can Help

In Michigan, HVAC service contracts typically require contractors to hold a valid Michigan Mechanical Contractor’s License, with additional licensing for specific work such as refrigeration or hydronic heating. Contracts must comply with the Michigan Occupational Code and often reference the Michigan Building Code, which incorporates relevant mechanical and safety standards. Prevailing wage requirements may apply on public projects, and contractors are usually obligated to maintain general liability insurance (commonly $1 million per occurrence) and workers’ compensation coverage. Indemnification clauses are standard, allocating responsibility for property damage or injury. Contracts often stipulate clear scopes of work, performance timelines, and detailed payment schedules—frequently allowing for progress payments tied to project milestones, with retainage held until completion and inspection. Michigan law generally requires prompt payment to contractors and subs, with interest penalties for late payment on public jobs. Change order procedures, warranty periods (often one year for labor and materials), and dispute resolution mechanisms—typically favoring mediation or arbitration before litigation—are commonly specified. Risk factors include compliance with environmental regulations (e.g., refrigerant handling per EPA and Michigan EGLE rules), weather-related delays, and supply chain fluctuations. Local contracting norms emphasize written change orders, lien waivers, and clear documentation to mitigate disputes.