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Terms and conditions for HVAC contractors should clearly outline the scope of work, pricing and payment terms, warranties and liability, and dispute resolution. Key components include defining services, payment due dates (e.g., upon completion or in installments), penalties for late payments, the duration of warranties, limitations on liability, and how to handle disagreements, such as through mediation or arbitration.
Scope of Work and Services
Identification of Parties: Include the legal names, addresses, and contact information for both the contractor and the customer.
Detailed Description: Clearly define the services to be provided, including preventative maintenance, emergency services, or specific installation work.
Frequency: Specify the frequency of service visits, such as monthly or quarterly.
Exclusions: List any services or situations that are not covered, such as damage from existing code violations, improper power, or customer misuse.
Pricing and Payment Terms
Total Cost: State the total cost of services or equipment.
Payment Schedule: Define when payments are due. For example, payment may be due upon completion for service calls, or in installments for large projects.
Late Fees: Specify any penalties for late payments, such as interest charges.
Accepted Payment Methods: List acceptable forms of payment.
Additional Charges: Detail any additional charges for services outside the initial agreement.
Warranties and Liability
Warranty Coverage: Specify the duration and terms of the warranty on parts and labor, and what is not covered (e.g., normal wear and tear, abuse, or product failures).
Limitation of Liability: Set limits on the contractor's liability. This can limit the total financial liability or restrict the types of damages recoverable, such as consequential damages.
Indemnification: Include clauses where the contractor agrees to hold the client harmless from claims arising from the contractor's negligence.
Dispute Resolution
Mediation: Outline a process for resolving disputes amicably first.
Arbitration: Specify if arbitration will be used for more serious disagreements and detail the arbitration process.
Legal Action: State the timeframe within which legal action must be taken.
Attorney's Fees: Specify which party is responsible for legal fees in the event of a lawsuit.
Termination
Cancellation Policy: Clearly define the conditions under which either party can terminate the contract, including the required notice period.
Automatic Renewal: Mention if the contract includes any automatic renewal clauses and how to prevent renewal.