If you are a hvac working in Michigan, having a solid written service agreement is one of the smartest things you can do to protect yourself and your business. A good agreement sets clear expectations with your client, spells out exactly what work you will perform, and helps you avoid the kinds of misunderstandings that lead to payment disputes or lawsuits. This guide walks you through what to include in a hvac service agreement in Michigan and why each piece matters.

Every hvac service agreement should cover the basics first. That means a detailed scope of HVAC work including equipment to be installed or serviced, compliance with the International Mechanical Code, refrigerant handling certification details, permit and inspection responsibilities, a warranty on equipment and labor. You want anyone reading the document to understand exactly what they are agreeing to. The more specific you are about the scope of work, the less room there is for a client to claim you promised something you did not. If you are handling refrigerants, your agreement should mention that your technicians are Section 608 certified under the federal Clean Air Act. This protects you and reassures the client that the work is being done legally.

Michigan has its own set of rules that affect how contractor agreements work. Depending on the type of work you do and the dollar value of the project, you may need to be licensed or registered with the state, and your license number may need to appear on your contract. If you are not paid for your work, Michigan law gives you mechanics lien rights, meaning you can file a claim against the property. You generally have 90 days after you finish work to file your lien, so do not wait. In Michigan, clients typically have a three business day right to cancel certain home improvement contracts without penalty. Your agreement should inform the client of this right. Michigan also has state energy code compliance for insulation and sealing work. Make sure your agreement accounts for these state-specific requirements. The Michigan-compliant template on this page already includes these clauses, so you do not have to figure them out on your own.

Payment terms are where many contractor agreements fall short. Be specific about how and when you get paid. Will you bill a flat fee, an hourly rate, or milestone-based payments? When is the final payment due, and what happens if the client is late? If you are collecting a deposit, check whether Michigan limits how much you can collect up front. A clear payment schedule protects your cash flow and gives the client a roadmap of what to expect financially throughout the project.

Finally, think about insurance and liability. Your hvac service agreement in Michigan should address who carries insurance, what types of coverage are in place, and how disputes will be handled if something goes wrong. Carry adequate general liability insurance and workers compensation coverage as required by Michigan law. Include a clause stating that you are an independent contractor, not an employee, so there is no confusion about tax responsibilities or employment relationships. A well-written agreement protects both you and your client, and it shows that you run a professional operation.