An HVAC service contract is an agreement between an HVAC contractor and a new client, stating the contractor’s terms for performing the work in exchange for payment. This written agreement documents the HVAC contractor’s provision of routine maintenance and repairs as needed, ensuring that the client has a reliable provider on hand to keep their HVAC systems working.
What Is an HVAC System?
An HVAC system helps ensure an interior space stays at an optimal temperature. It’s a climate-controlled cooling and heating system that regulates the interior temperature of commercial and residential properties. The system takes filtered outside air to each room and provides its own temperature setting.
What Does HVAC Stand For?
HVAC stands for:
- Heating: Heating increases the temperature inside buildings to offer warmth. An HVAC system can achieve this process through various means, including boilers that heat water for steam radiators, heat pumps, electric heaters, and furnaces that burn fuel.
- Ventilation: Ventilation replaces or exchanges the air within a room to increase indoor air quality. This process involves oxygen replenishment, temperature control, and removal of smoke, dust, heat, moisture, odors, carbon dioxide, and other gases.
- Air Conditioning: Air conditioning cools indoor air and provides comfort during warmer seasons. This process may involve evaporation or a refrigeration cycle.
Key Components of an HVAC Service Contract
Here are the essential components of HVAC maintenance contracts:
- Business details: Give your company’s name and the address where the provider will perform their services.
- Service definitions: Define the services the contractor will provide. Some providers may only offer routine maintenance services, while others may provide maintenance and repairs as necessary. Ensure that you state the frequency of the listed services.
- Cost and payment terms: Specify how you’ll pay the contractor for their work. Depending on your agreement, you may pay them a periodic fixed wage, a set fee, or after completing certain milestones.
- Expense reimbursement: Clarify if you will reimburse the contractor for any expenses they incur while performing their services.
- Term and termination: Provide the start and end dates of the HVAC maintenance agreement and state the terms under which you can terminate the contract. For example, you may be able to terminate your agreement with the HVAC service provider at will if you provide a certain amount of notice.
- Liability and insurance: Clarify each party’s liabilities and confirm that the service provider has sufficient coverage for any property damage or physical harm that may occur when they work.
- Optional clauses: Consider including optional clauses in your HVAC maintenance contract, such as those for confidentiality, ownership of work product, noncompete, nonsolicitation, indemnification, and dispute resolution.
Benefits of HVAC Service Contracts
Here are several benefits of using a contract to establish an independent contractor relationship with an HVAC service provider:
Reasons to Enter an HVAC Service Contract
- Access to priority service
- Prevention of major repairs
- Improved system efficiency
- Extended equipment lifespan
- Compliance with warranty requirements
- Improved air quality and comfort for building occupants
- Peace of mind if anything goes wrong
How to Choose an HVAC Contractor
Step 1 – Research and Compare Different Contractors
Use the following websites to research and compare different HVAC service providers:
- Better Business Bureau (BBB)
- Angi
- HomeAdvisor
- Google My Business (just search “HVAC contractors near me”)
- Yelp
- Specific manufacturers’ websites (like American Standard Air)
- Local chambers of commerce or trade associations
- EnergyStar
Compare their service offerings and prices. Learn what technical expertise they have by seeing if they’re part of or have certifications from the following organizations:
- Indoor Air Quality Association
- Refrigeration Service Engineers Society
- North American Technical Excellence
- Environmental Protection Agency
Step 2 – Check for Licensing and Insurance
Confirm that the HVAC service providers you’re considering are properly licensed in your state, as they won’t be able to legally work without the proper license.
Check if the potential service providers carry liability insurance and are bonded. These protections safeguard you from potential liability and damage when the professional works on your property.
Step 3 – Browse Reviews and Obtain References
Browse online reviews to learn about previous clients’ experiences. Use the same websites that you used to initially discover the HVAC service providers. You can also visit each contractor’s website to read reviews, but be mindful that the provider may have been biased when uploading reviews.
For all the reviews, consider what customers say about the company’s response times, professionalism, and customer service to see if you could envision yourself hiring them.
Step 4 – Get Multiple Quotes
Before drafting an official HVAC service agreement with any provider, request detailed quotes from multiple providers. Compare the costs and included services. Look for transparency in pricing and be wary of deceptively low quotes that could point to low service quality.
Step 5 – Conduct Interviews
Conduct interviews with your final candidates. Use these experiences to assess their communication, evaluate their availability, and review sample maintenance service agreements.
You can also use this time to determine their suitability for your company. For example, you can ask situational questions to get a sense of their problem-solving or inquire about their focus on being energy-efficient if that’s something your organization prioritizes.
Step 6 – Make a Final Decision
Combine all these factors to make an informed final decision. Consult others in your company if you need help determining the most economical hiring choice while ensuring you recruit a quality service provider.
Once you settle on your decision, use an HVAC maintenance contract template to craft your agreement. Refer to previous conversations with your chosen provider, ensuring you incorporate terms they’re willing to settle on. Consider negotiating, but keep your expectations realistic.
HVAC Service Contract Sample
Download an HVAC service contract template in PDF or Word format below:
Frequently Asked Questions
How much does an HVAC service contract cost?
The cost of an HVAC service contract will vary greatly depending on multiple factors, including its length, the specific HVAC services included, service frequency, and system age, type, and size. Basic HVAC service agreements cost anywhere between $150 and $500 per year, but they may cost more if they include more services or frequent visits.
What questions should I ask a potential HVAC service contractor before signing a contract?
Here are some examples of questions to ask a potential HVAC service contractor before signing an agreement:
- What are your emergency service policies?
- What efficiency standards do you follow?
- How do you ensure safety and compliance when working?
- What experience do you have with my company’s specific system?
- How do you handle repairs and replacements?
- Can you provide testimonials or references?
What does HVAC service include?
HVAC service includes various tasks to ensure your HVAC system remains functional, safe, and efficient. Regular HVAC service may include the following tasks:
- General inspections and safety checks
- Cleanings of filters, drain lines, and coils
- Adjustment of refrigeration levels
- Thermostat calibration
- Lubrication of moving parts
- System and performance testing
- System upgrade recommendations