The term ‘HVAC’ typically refers to heating, ventilation, and air conditioning. When an owner of a property enlists a professional who deals with the servicing of HVAC units, they are going to require an HVAC service contract. This applies to all kinds of properties, as HVAC systems usually require some degree of maintenance, ideally on a routine basis. If you are unable to do it yourself and wish to hire a professional, this guide will walk you through everything you need to know about HVAC service contracts. Additionally, at the very end of the article, we’ve attached a template that can be used and modified as per your situation!
Since an HVAC contract is usually drafted for an on-going agreement and not a one-time job, it is highly recommended for both service providers as well as property owners. Such a contract guarantees an income for service providers, while also making sure that the property owner’s HVAC units get consistent servicing and care. This can, in the long run, increase the value of their property, as well as help them avoid several problems that may stem from faulty HVAC units. This is particularly important in the summer and winter, as temperatures are likely to be either very high or very low. A functional HVAC system is very important, and so, a contract is likely to guarantee just that.
HVAC service contracts typically include the following;
- Services provided; These typically include a routine check-up, cleaning and servicing, and a “tune-up” when most necessary – before summer and winter in most states. Contracts may also include services that offer to replace spare parts if and when necessary, priority services, which obligate the service provider to attend to your needs when required and even emergency services.
- The financials; All of the pertinent financials should be explicitly outlined in the contract. This includes the amount paid, the term for which it is paid, and the cost of additional “add-ons,” such as emergency and priority services.
While these are the most common particulars that need to be discussed and outlined in the body of the contract, customers and service providers may also add additional clauses. This includes any personalized services they may need, holding the company on retainer in case the property is a large, commercial holding, course of action in case of a breach, and much more.
Things to know before drafting an HVAC Service Contract!
First, owners will need to budget and plan accordingly if they wish to hire an HVAC service provider. In some cases, it may be more affordable to perform maintenance on a case-to-case basis and hire a specialist when required, rather than contract them to do it on a routine basis. This holds particularly true when the HVAC unit itself is new and is covered by warranty, or if the property is located in an area that isn’t subject to drastic changes in weather. HVAC service contracts typically range from $150 to $500 a year, depending on the services offered, as well as on locality. As a result, owners should do some research about the cost of one-time services, and weigh it against the cost of routine service in their area. With a contract, owners will be paying a set amount even if no repair or maintenance is required, and so, they should judge whether or not they need an HVAC service provider.
Additionally, they should see what services are included within the yearly contract. If emergency and priority services are of particular value to the property owner, an HVAC service contract may be the right option. If not, it might be more affordable and financially prudent to put off a contract and enlist a professional as and when they need it. Finally, they should do some research into recruiting the best HVAC service provider in their area if they choose to go ahead and hire a professional.
HVAC Service Contract Templates
We’ve drafted a template that can be used as a reference for all dealings with HVAC service providers and is listed below;
HVAC SERVICE CONTRACT
This contractual agreement is made enforceable on the date of _. (DATE)
I. THE PARTIES
The parties contingent to this agreement are listed as follows;
The “Client” - With the following mailing address; ____________________________________________________________ The “Service Provider” - With the following mailing address; __________________________________________________________________
II. THE SERVICE(s)
(Here, the service provider will have to detail exactly what services they are providing, including bonuses like emergency and priority service.)
The “Client” hereby agrees to pay the “Service Provider” the following amount;
_ Yes _ No A fee of __$/hour _ Yes _ No A fee of __$ for the entirety of the contract _ Yes _ No Other ___________________________
or this contract, the parties will collectively be referred to as “The Parties.”
IV. THE TERM
The agreement is scheduled to be enforceable between the dates of _ (START DATE) and __ (END DATE). (This may be modified if required to allow for termination at the insistence of either party.)
V. THE SERVICE(s) PROVIDED
For the purposes of this agreement, the “Service Provider” agrees to provide the following services to the best of their ability, while complying with all local and federal regulations, laws, policies, and standards;
The “Client” also hereby agrees to pay the “Service Provider” according to the following schedule;
(Here, the client and service provider must detail how often they are to be paid, or if they are to be paid just once. Additionally, they must include details on how payment is to be made, such as check, bank transfer, wire transfer, etc. The client should also add the timeframe within which a receipt should be given.)
VI. ADDITIONAL CLAUSES
Here, the client and/or service provider may choose to add additional clauses to help safeguard the agreement. This includes things like retainers, confidentiality, an inspection of services, return of the property, tax inclusion, safety, no waiver, and any other additional clauses they may wish to add.
VII. THE AGREEMENT IN ITS ENTIRETY
The agreement explicitly detailed above hereby represents the entirety of the arrangement between the parties. It hereby overrides any previous or existing agreement, contractual or not, that may have been in place before the signing of this contract. No additional clauses will be binding unless agreed upon by both parties.
The parties hereby agree to the aforementioned terms and conditions.
CLIENT NAME _
CLIENT SIGNATURE ________ DATE __
SERVICE PROVIDER NAME ___
SERVICE PROVIDER SIGNATURE DATE
Frequently Asked Questions
HVAC maintenance includes a check-up to see if there is anything faulty within your HVAC unit, as well as cleaning filters and units to make sure they can continue to run at maximum efficiency. This is typically carried out by a licensed professional.
In the United States, HVAC servicing typically costs between $150 and $500 on a contract basis. These contracts run for a year and offer service sessions twice or thrice a year, depending on locality as well as the service provider. On a case-to-case basis, companies typically charge $100-$150 per hour.
This largely depends on your use, as well as your locality. If you live in an area that is susceptible to stark changes in climate and weather, we recommend doing HVAC maintenance twice a year – once before the start of summer and winter, respectively.