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An HVAC subcontractor agreement is used to engage the services of an HVAC (Heating, Ventilation, and Air Conditioning) technician to work on a commercial or residential building. As a subcontractor, the technician works for the contractor who holds the prime contract with the client.
The agreement establishes the names and addresses of all three parties, the services to be performed, the contract’s duration, and the subcontractor’s compensation.
Contents |
What is an HVAC Subcontractor?
An HVAC subcontractor is a trained professional who is an expert in the heating, cooling, and ventilation of buildings. That being said, individuals may narrow their focus and services to one specialty within the HVAC field, such as air purification or energy efficiency.
While working as a subcontractor, an HVAC technician will report to and be paid by a contractor who works directly with the principal client. The subcontractor will usually need to provide their own transportation, supplies, and equipment when working on a contract. Furthermore, they will need to declare and pay taxes on their income as a self-employed individual.
What is an HVAC System?
An HVAC system regulates temperature and circulates air to cool and heat homes, buildings, and other structures. These systems can also filter, purify, and humidify transferred air to improve the internal air quality of a space. Although an HVAC system can include heating, cooling, and ventilation, not all systems will support all three functions. The components of an HVAC system are controlled by a smart thermostat that keeps ambient temperatures within a controlled range.
Sample
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HVAC SUBCONTRACTOR AGREEMENT
This Agreement is made as of [MM/DD/YYYY] between [SUBCONTRACTOR NAME] (the “Subcontractor”) and [CONTRACTOR NAME] (the “Contractor”).
1. SERVICES. The Subcontractor shall provide HVAC services to the Contractor in accordance with the terms and conditions of this Agreement. The services to be performed by the Subcontractor include the installation and maintenance of HVAC systems and equipment, as described as follows: [DESCRIBE SERVICES].
2. TERM. This Agreement shall commence on [MM/DD/YYYY] and shall terminate upon completion of the services as described in Section 1.
3. PAYMENTS. The Contractor shall pay Subcontractor for the services performed in accordance with Exhibit A at the rate of $[AMOUNT] per hour or as otherwise agreed upon in writing by the parties. Payment shall be made within [#] days of completing the services.
4. TAXES. The Contractor shall be responsible for all taxes, duties, fees, and other charges related to this Agreement, including, but not limited to, sales, use, and income taxes.
5. INSURANCE. The Contractor shall maintain and provide evidence of general liability and workers’ compensation insurance with limits of no less than $[AMOUNT] prior to the performance of any services by the Subcontractor and shall maintain such insurance during the term of this Agreement.
6. INDEMNIFICATION. The Subcontractor shall indemnify, defend, and hold harmless the Contractor, its affiliates, and their respective employees, officers, directors, and agents from and against any and all liabilities, losses, claims, demands, damages, costs, and expenses, including reasonable attorneys’ fees, arising out of or relating to the performance of services under this Agreement.
7. TERMINATION. This Agreement may be terminated by either party upon [NUMBER] days’ written notice to the other party.
8. GOVERNING LAW. This Agreement shall be construed in accordance with the laws of the [STATE].
9. MISCELLANEOUS. This Agreement sets forth the agreement between the parties and supersedes all prior agreements and understandings, whether written or oral. Any amendments or modifications to this Agreement shall be in writing and shall be signed by both parties.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.
_________________________
[SUBCONTRACTOR NAME]
_________________________
[CONTRACTOR NAME]
Common Services
HVAC subcontractors will provide a combination of the following three (3) services during the course of their work:
Installation
Installing HVAC systems in commercial and residential structures is one of the subcontractor’s most common jobs. This often involves removing old equipment and systems, taking measurements, planning, and completing the installation. Once the installation has been completed, the technician will need to inspect their work to ensure that everything is operational.
Maintenance
Maintenance involves the inspection and cleaning of pipes, ducts, vents, refrigerants, circuits, fans, motors, and other HVAC components. During an inspection, the subcontractor will usually fix any problems that can be dealt with easily, such as patching up leaks, refilling refrigerants, and emptying air ducts. Inspections can also be made to offer energy efficiency recommendations.
Repairs
Once a maintenance inspection has been completed or in an emergency situation, a technician will need to repair any issues that cannot easily be fixed during the course of regular maintenance. If there are parts or equipment that cannot be repaired, they must be replaced to restore HVAC functions.
HVAC Subcontractor Licensing
The majority of states require individuals to complete certified training programs, gain work experience, and obtain a license before they can become an HVAC subcontractor. Some states also require HVAC professionals to have a high school diploma and a bachelor’s degree. An insurance bond to cover potential liability due to damage, loss, or injury while working on a project is sometimes also required.
States That Don’t Require an HVAC License
The below states do not have a state-wide licensing requirement. However, there are usually local HVAC licenses mandated and handled by municipal governments.
- Colorado
- Illinois
- Indiana
- Kansas
- Maine
- Missouri
- Montana
- Nebraska
- New Hampshire
- New York
- Pennsylvania
- South Dakota
- Vermont
- Wisconsin
- Wyoming