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What Is an HVAC Maintenance Agreement? Everything You Need to Know

What Is an HVAC Maintenance Agreement? Everything You Need to Know

You own and operate a business, and right now you are looking to enter into a contract with an HVAC service provider. Regular upkeep is something that you believe will benefit you in the long run, and now it comes down to hiring a professional whom you can rely on. You’ve been doing your research and comparing companies, but it’s difficult to determine everything that’s included in a standard HVAC maintenance agreement. You also want to know if it will be worth the money and if you’re getting a lot of value from the service itself.

What is an HVAC Maintenance Agreement?

It’s a contract that you sign between you and a service provider to ensure that your HVAC system will undergo regular inspections and tune-ups when needed. You will have to pay an agreed-upon fee to guarantee that you’ll receive continual services. The more standard contracts will include checkups and other accommodations as well as timely seasonal services (during the spring and fall prior to summer and winter, respectively). In some agreements, you can arrange it to where the service provider will include parts and repair services for any problems found with your HVAC system. You also have priority agreements, which will ensure that you receive immediate service. This allows you to avoid any discomfort during those harsh summer and winter months. The more stipulations included in your contract, the more money you will likely have to pay. This includes full labor and full coverage guarantees.

The Price of Your Agreement

Several different factors will play a role in the cost of your maintenance agreement. One example will be the number of equipment items. Your contract will cost a lot less for a building with only a single rooftop unit versus numerous units for a larger space. Size, age, and accessibility are all major factors in the agreement.

The size of your HVAC system will greatly affect the price of your maintenance agreement. The larger the system, the longer it takes your HVAC technicians to inspect everything and undergo routine maintenance. For example, a residential split system will typically contain only one filter and a single compressor. A 50-ton system, on the other hand, may have 20 filters and several compressors as well as a complex electrical setup that keeps everything connected. The more components you need to inspect, the more expensive your agreement will turn out to be.

The type and accessibility of your equipment will also determine the pricing. An example of this would be a rooftop unit where all your components are in a single place. Some of the more high-end systems are more complex and require a lot of experience to perform maintenance and repair services. Accessibility is also a major factor. Think of a densely populated area where there are large buildings on every road and around every corner. The HVAC systems in those areas are usually crammed into a small space that creates un-ideal working conditions. The easier it is to access your HVAC equipment, the less money you will have to pay for your maintenance agreement. Any unit with all the components in a single area is a lot easier to work on than a system with components located throughout an entire building.

The distance that your service provider has to drive will also have an impact on the pricing. It may seem ridiculous for them to charge you based on how long it takes them to get there, but time and resources are always critical. If a vendor is nearby, or if they have a large number of service trucks in your area, then you won’t have to pay as much for your maintenance agreement. If you can, you should always opt for an HVAC repair service that’s near you.

You will also need to consider the number of tasks and maintenance visits that you include in the agreement. Many services provides will refer to these provisions as “preventative tasks” and there are plenty of variations in the tasks you want to include. For example, it could be something as simple as changing your filters and belts, or a refrigerant inspection. However, you can take it a step further if you want. You can have your service provider inspect the electrical connections and condition of parts, clean the coils and check out drain lines and pans. It’s also up to you to determine the number of appointments you’ll receive throughout the year. Two is usually the standard among homeowners and most commercial operators. If you have a more complex HVAC system, then the equipment will require frequent monitoring.

The age and lifespan of your equipment are also major factors. Think about it in terms of a life insurance policy – if you are older in age, you’re going to pay more money for full coverage. You also need to consider the condition of your existing system. Is it likely to fail soon? If so, then your HVAC Maintenance Agreement is going to cost you more money. (Certain components are also designed to last a lot longer than others.) The shorter the life expectancy of your existing system, then the more money you will have to pay to enter into a contract.

Take a Good Look at Your Agreement

The price is ultimately derived from the time it takes to undergo regular maintenance procedures. However, sometimes the price seems too good to be true. If this is the case, take out your calculator and do a little math. Divide the price of the agreement by the company’s hourly rate for labor. Now divide that by the number of the visits they’ve agreed to do in a given year, then divide that by the number of equipment items that are involved. The final number will be the amount of time the company will spend on a single equipment item. In some cases, that number can turn out to be something ridiculously low, such as five minutes. Five minutes of service? That can’t be right. It only takes a little math to determine if something’s fishy.

The biggest takeaway here is that there is no one-size-fits-all solution when it comes to your HVAC Maintenance Agreement. You should always customize the agreement so that it suits your individual needs. Also, you should always consider the money that you are spending on a preventative maintenance service as an insurance policy. You’re going to benefit from it immensely in the long term.

Have any questions? We can certainly answer them! Contact one of our staff members today and they can explain a standard HVAC Maintenance Agreement in greater detail.