Company: LGN
Filing Date: 2025-02-14
Form Type: DRS
Source: 0000950123-25-002471
Chunk: 148

Company: Legence Corp.
Filing Date: 2025-02-14
Form: DRS
Chunk 148
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 of less than $ million.

The materials and components we use in our projects include ductwork, pipe, valves, fittings, electrical wire, conduit and fixtures,
fabricated steel and sheet metal and are generally available from a large number of domestic or foreign suppliers at competitive prices. Import tariffs on any materials and components we procure internationally are passed through to our clients. We
are not overly dependent on any vendor or supplier of technologies or products.

Certain contracts require us to purchase equipment for
projects. When equipment purchase is part of a contract, we typically do not take exposure to increases in the price of equipment. We are equipment vendor agnostic and do not have exclusive relationships with any vendor or supplier of equipment used
in our clients’ buildings. We seek to identify the highest performing equipment for our clients’ requirements.

Some of our
contracts require bonding and contain liquidated damages provisions tied to a timeline for completion of the project. We maintain relationships with multiple surety bonding providers and have not historically had any difficulties obtaining bonding
for our projects. In the ten years prior to December 31, 2024, we did not receive a claim for liquidated damages in excess of $100,000.

Seasonality

The mechanical and
electrical contracting industries are subject to seasonal variations. Demand for new installation and replacement is generally lower during the winter months due to reduced construction activity during inclement weather and less use of air
conditioning during colder months. Demand for our services is generally higher in the second and third calendar quarters due to increased services activity and increased use of air conditioning during the warmer months. Additionally, activity levels
in our business can be impacted by government fiscal spending cycles, which can be impacted by a wide variety of factors.

Facilities

Our corporate headquarters are located in San Jose, California. As of December 31, 2024, we operated out of more than 70 locations across
20 U.S. states, all of which were leased locations. Our lease terms vary from month-to-month to multi-year commitments of up to 31 years, while our average commitment is
approximately seven years. Our facilities include six fabrication facilities totaling more than 450,000 square feet, including an ISO Class 7 cleanroom. We believe that our existing facilities are adequate for our current requirements and
comparable or alternative space is readily available to accommodate our operations.

Insurance and Risk Management

We maintain a comprehensive general liability insurance policy with an umbrella policy and multiple excess policies that cover losses beyond
the general liability limits. Our umbrella