Need a HVAC Contract in South Carolina? AroundWire Can Help

In South Carolina, HVAC service contracts—covering installation, maintenance, and repair—are governed by a combination of state regulations and industry standards. Contractors must hold a valid South Carolina Mechanical Contractor License with an HVAC classification, issued by the South Carolina Department of Labor, Licensing and Regulation (LLR). Contracts typically require proof of general liability insurance (often with minimum coverage of $500,000) and workers’ compensation insurance if employees are involved. State law mandates that projects exceeding $5,000 must be in writing and outline scope, materials, timelines, payment schedules, and warranty terms. Prevailing wage requirements do not generally apply except for federally funded projects. HVAC work must comply with the latest International Mechanical Code as adopted by the state and may require local permits and inspections. Payment terms commonly include progress payments tied to milestones, with retainage (up to 5-10%) held until satisfactory completion. South Carolina’s Prompt Payment Act requires owners to pay contractors within 21 days of invoice approval, and contractors to pay subcontractors within seven days of receipt. Dispute resolution is often addressed via mediation or arbitration clauses, reflecting a preference for alternative dispute resolution. Risk factors include liability for code compliance, unforeseen site conditions, and weather delays; indemnification clauses and performance bonds are standard in larger contracts. Overall, contract structure is influenced by both state statutes (notably Title 40, Chapter 11 of the South Carolina Code) and local permitting norms.