Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 152

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 152
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 storage and disposal of hazardous substances or waste materials; the remediation of
contamination associated with the releases of hazardous substances; and human health and safety, including, as amended, the Clean Water Act, the Clean Air Act, the Resource Conservation and Recovery Act, the Safe Drinking Water Act, the National
Environmental Policy Act, the Occupational Safety and Health Act, the Comprehensive Environmental Response, the Compensation and Liability Act and the Toxic Substances Control Act. For example, we are required to comply with specific requirements
imposed by the federal Clean Air Act on the use and handling of ozone-depleting refrigerants such as chlorofluorocarbons or hydrochlorofluorocarbons and the management of, and certification of our service
technicians involved in, the service or repair of equipment containing these refrigerants. Failure to comply with any environmental, health or safety laws or regulations, whether actual or alleged, exposes us to, among other things, fines, penalties
or potential litigation liabilities, including costs, settlements and judgments.

Industry-Specific Regulations. As a provider of
engineering, consulting, installation and maintenance services for MEP and HVAC systems in buildings, our projects and recommendations must conform to all

105

Confidential Treatment Requested by Legence Corp.

Pursuant to 17 C.F.R. Section 200.83

applicable electric reliability, building and safety, zoning and other applicable laws, codes and ordinances. Further, various federal, state, provincial and local permits may be required to
complete a particular project. These process for obtaining such permits may be complex and negatively impacted by regulatory and permitting delays, as well as private legal challenges related to regulatory requirements.

Government Contracting Regulations. A portion of the Company’s sales results from contracts with governmental customers within the
United States. The Company remains subject to a number of risks associated with government contracting including changes in the government’s spending priorities, the availability of appropriated funds, changes in policies and laws pertaining to
government contractors. The Company’s government contracts include terms and conditions otherwise not applicable to commercial arrangements including the government’s ability to terminate these contracts for convenience, either in whole or
in part. In the event of such a termination, the Company generally would be entitled to allowable costs incurred in performance plus reasonable profit realized for the work performed up to the date of termination. Government customers may also
terminate a contract for default in the event of the contractor’s uncured breach in which case the contractor will generally be entitled to payment for the portion of the