Need a HVAC Contract in Texas? AroundWire Can Help

In Texas, HVAC service contracts—covering installation, maintenance, and repair—typically require contractors to hold a valid Texas Department of Licensing and Regulation (TDLR) Air Conditioning and Refrigeration Contractor License, with appropriate endorsements for environmental systems. Contracts must comply with the Texas Business and Commerce Code and often reference local building codes and the International Mechanical Code as adopted by municipalities. Liability insurance is standard, with minimums commonly around $500,000 per occurrence and proof required prior to commencement. Workers’ compensation coverage is not always mandated by state law but is frequently stipulated in public sector contracts. Indemnification clauses are prevalent, and contractors are often expected to warrant workmanship and materials for one year or more. Payment terms usually specify progress payments tied to milestones, with retainage of up to 10% until final acceptance, reflecting Texas Prompt Payment Act requirements for public projects. Projects involving public funds may also require performance and payment bonds. Dispute resolution typically favors negotiation and mediation before litigation or arbitration, consistent with Texas contracting norms. Prevailing wage requirements may apply to government contracts. Risk factors include compliance with environmental regulations (e.g., refrigerant handling per EPA standards) and potential for severe weather disruptions. Finally, contracts often include explicit timelines, penalties for delays, and detailed scope-of-work definitions to minimize ambiguity.