Need a HVAC Contract in Tennessee? AroundWire Can Help

In Tennessee, HVAC service contracts—covering installation, maintenance, or repair—are subject to specific state and local regulations. Contractors must hold a valid Tennessee Mechanical Contractor’s license for projects exceeding $25,000, and relevant local business licenses for smaller jobs. All HVAC technicians are required to have EPA Section 608 certification for handling refrigerants. Contracts typically require proof of general liability insurance (often $1 million per occurrence) and workers’ compensation coverage. Prevailing wage requirements may apply to public projects. Risk allocation provisions commonly address warranty terms (usually one year minimum), indemnification, and limits of liability. Payment terms often follow a milestone or progress billing structure, with retainage (up to 5%) held until final acceptance, especially on public works. Tennessee’s Prompt Pay Act mandates timely payment to contractors and subcontractors, with interest penalties for late payment. Dispute resolution clauses frequently specify mediation or arbitration before litigation. Contracts must comply with the Tennessee Contractor’s Licensing Act and may reference local codes, such as the International Mechanical Code as adopted by the state or municipality. It is typical to include provisions addressing change orders, project schedules, and compliance with safety regulations (including OSHA standards). Clear documentation of scope, equipment specifications, and performance standards is expected to mitigate risk and ensure compliance.