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HVAC maintenance contract: How-to guide
Even a well-designed heating and cooling system needs regular maintenance to perform well and deliver the best results. As HVAC contractors, it's crucial for you to provide your customers with the best HVAC systems.
If you're in the HVAC business, a maintenance contract is important. Follow this guide to explore what an HVAC maintenance contract is, the services included in it, the different types of HVAC maintenance contracts, and the critical components of such a contract.
What is an HVAC system?
An HVAC, also known as the heating, ventilation, and air conditioning system, includes a set of technologies and equipment designed to create and maintain a comfortable indoor environment.
- HVAC systems are vital in regulating temperature, humidity, and air quality in indoor spaces, ensuring that occupants remain warm during colder seasons and cool during warmer seasons.
- These systems have air filtration and purification components that help promote healthy indoor air quality by removing dust, allergens, and other pollutants.
- They regulate humidity levels to create an optimal and comfortable indoor environment for occupants.
What is an HVAC maintenance contract?
An HVAC maintenance contract is an agreement between HVAC service providers and their customers, such as a residential owner or a commercial customer. It outlines the service providers' responsibilities, such as delivering regular HVAC maintenance for the property's heating, ventilation, and air conditioning systems for a set fee (usually upfront). It binds both parties to carry out their duties and responsibilities.
Why is an HVAC maintenance contract required?
Setting up and maintaining an HVAC system can be quite expensive for owners and often requires specialized technical know-how. To reduce these costs, many HVAC companies offer an HVAC maintenance agreement to address customers' HVAC service requirements.
What are some other names for an HVAC maintenance contract?
An HVAC maintenance contract is known by many names, such as:
- HVAC service contract
- HVAC repair contract
- Heating ventilation and air conditioning contract
What are the benefits of having an HVAC service contract?
An HVAC service contract benefits both HVAC companies and their clients. Let's explore these advantages for each of the party:
1. Revenue generation
HVAC service contracts benefit HVAC companies, as they generate revenue for service providers from seasonal maintenance visits and the sale of replacement equipment.
2. Regular maintenance
At times, property owners may miss the due date for general maintenance of the HVAC system owing to their busy work schedules and other reasons. Having an HVAC service contract ensures that regular maintenance of the asset is being done, thus improving the energy efficiency of the complete air conditioning unit.
3. Priority service
Having an HVAC service contract in place gives the client access to priority service without any hassle, ensuring the best performance of the HVAC equipment.
4. Cost savings
Choosing a package instead of paying for individual services may lead to cost savings for the customer, making it an attractive option. Also, having a reliable HVAC contractor who can be given an emergency call to identify any issues early on can help customers avoid paying for costly repairs.
This also enhances brand reliability, and customers endorse such brands through word of mouth to their friends and relatives, thus making it beneficial for the HVAC company.
5. Discounted repairs
Clients who choose such service contracts may require services over a longer period at frequent intervals, so the contractor may offer discounted repairs, which benefits the clients.
6. Peace of mind
Knowing that professionals are taking care of your HVAC system gives property owners peace of mind. Once they are satisfied with the maintenance procedure, they might show interest in using other products of the same company.
What are the different types of HVAC maintenance contracts?
HVAC service providers may offer comprehensive maintenance plans or service contracts encompassing a range of services to ensure your HVAC equipment's optimal functioning and longevity. Some of the major types of such contracts are:
1. Full-service contract
Though this is the most expensive contract, it's an all-inclusive package that covers all the required aspects of an HVAC service plan. This includes:
- Parts
- Labor
- Preventive maintenance
- Emergency service
- Replacement of equipment under the same pricing
2. Labor-only contract
A competitive workforce is essential for ensuring smooth operations in any technical work. As the name suggests, the labor-only contract focuses on the service technicians of HVAC service contracts.
- Labor or service technicians required for repairs
- Replacement services
- Maintenance
3. Preventive maintenance contract
This contract covers maintenance for your HVAC system to ensure its optimal functioning. This includes:
- The periodic inspection of the HVAC system, such as light repair work.
- It also specifies the circumstances under which equipment replacement may or may not be included.
- Such contracts require biannual and quarterly visits from HVAC service providers.
What should an HVAC maintenance contract include?
Here are the key points to include in an HVAC maintenance contract:
1. Tenure of the contract
The contract must state how long a client wants to hire HVAC contractors or service providers. Generally, commercial clients hire HVAC contractors for at least one year.
2. Frequency
The contract must specify how often inspections or service calls will be done, i.e., the frequency with which the client requires your routine maintenance service, such as weekly, monthly, or yearly.
3. Business hours
Mention the business hours when the inspection or maintenance services will be provided.
4. Details of the equipment
The contract must mention all equipment that requires maintenance, its brand, model, age, serial numbers, and location. It should also specify the warranty provided on replacement equipment.
5. Maintenance services
This section of the contract describes the different maintenance plans and service contracts provided by the HVAC companies, which in some cases, may be available as customizable packages. However, the main aspects include the following:
- Oversight
- Parts replacement
- Maintenance schedule
- Service-call priority to the client
6. Pricing
The contract should detail the pricing of the replacement equipment and how much you will charge the client for the services offered.
7. Payment options
The HVAC service contract should stipulate the payment options, whether an HVAC service provider receives payment at every visit or bills its clients quarterly or annually. The mode of payment should also be included.
8. Permissions
Here, the contract outlines the permissions the contractor should have to provide maintenance services. The contract should explicitly mention that HVAC company service technicians can access the HVAC owner's property with access to the required utilities, such as water and electricity, to execute their work properly. Subsequently, the contractor can agree to not cause any property damage, and leave the premises clean by removing debris or any residual elements left after the work.
9. Inspection
This section states the client's right to inspect the work carried out by the service provider under the contract. It mentions that the client may write to the service provider if the work doesn't meet the contract's requirements or expectations. The service provider must make the necessary corrections within a reasonable timeframe.
10. Nature of the relationship
This part explains the contractor's relationship with the client. It states that the contractor is not the client's employee or partner.
11. Termination
This section outlines the specific circumstances that would result in the termination of the agreement, such as either party's failure to perform any of its obligations, which can be informed to the other party with a written notice. It also mentions the duration in which the parties must rectify the gap caused by the failure, after which they can seek legal assistance.
12. Limited liability
This section explains each party's responsibility for any injury or damages caused to the other. For example, if the service provider fails to deliver the specified services, it may cause damage to the client's system. On the other hand, if the client doesn't pay the specified charges on time or denies access to the required facilities, it may result in revenue loss for the service provider.
13. Indemnification
This section describes a contractor's responsibility for protecting the client from any claims, damages, losses, and expenses if such an incident occurs due to the contractor's negligence. It helps ensure the client's best interests under the contract.
14. Notice
This section mentions the process to follow if a written notice has been sent to either party and the mode of notice delivery.
15. Governing law
In this section, the involved parties agree to interpret the document according to the relevant state laws.
16. Signatures
This is where both parties, the HVAC company and its client, sign the contract once it is ready.
17. Entire agreement
This clause of the contract signifies the complete agreement between the parties involved. Any changes, such as adding or deleting terms, shall be written and signed by both parties.
Why should you have an HVAC maintenance checklist?
Keeping an HVAC maintenance checklist is a good practice as:
- It helps HVAC businesses efficiently conduct inspections and maintenance of HVAC systems.
- It assists them in quickly identifying the signs of HVAC failure.
- It helps to address potential problems.
- It ensures that HVAC systems are in proper condition.
What's included in an HVAC maintenance checklist?
To ensure your client's cooling and heating systems are performing at their best, it's vital to conduct check-ups. As HVAC service contractors, it's best to have a checklist ready to check the respective parts of the HVAC system. Here's what an ideal HVAC maintenance checklist for air conditioning systems must include:
- Replace condenser and evaporator coils
- Change air filters and clean the unit
- Clean drain lines to ensure proper flow
- Check the air conditioner for any possible refrigerant leaks
- Tighten electrical connections
- Inspect ducts for mold, dust, and debris
- Test compressors, start capacitors, and relays
- Check fan motor
- Check blowers and blades for proper airflow and clean them if required
- Inspect the air conditioner's condensate drain
- Check for debris around the outside unit
- Lubricate moving parts
- Replace filters on heating equipment
- Examine the ignition burner assembly
- Inspect the heater's fuel lines for faulty gas or oil connections
- Inspect heat exchanger or heating elements
- Inspect for gas leaks with gas furnaces
- Check gas pressure
- Clean the blower fan and air handler
- Check thermostats and controls
- Lubricate bearings and motors and any other moving parts
- Replace belts and pulleys
- Clear drain lines and pans of standing water to prevent overflows
- Check the heat pump
- Check the warranty of significant parts
Use LegalZoom's HVAC maintenance contract template
Use the sample HVAC maintenance contract provided on this page and answer questions to fill in your information. Once the contract document is ready, you can download it for free as a .pdf file. Do remember to save it to your desktop or print it as you require.
Use LegalZoom’s eSignature service to get signatures on your HVAC contract.
Consult an attorney (important): An HVAC maintenance contract may include legal and regulatory considerations. Please consult an attorney for the proper assistance to ensure your HVAC maintenance contract complies with local and state regulations.
Free HVAC Maintenance Contract Template
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