HVAC service contracts offer a host of benefits for both HVAC companies and their customers. For customers, these agreements guarantee reliable, high-quality, and routine maintenance, providing peace of mind. For HVAC contractors, service contracts ensure a steady stream of recurring income, creating a win-win situation for everyone involved.
As beneficial as HVAC service agreements are for an HVAC business, they can be challenging to manage and are often time-consuming. Thankfully, there’s a solution that speeds up the process and eliminates the threat of errors.
In this guide, readers will learn more about what an HVAC maintenance contract is and its benefits, as well as the role of field service management software in optimizing this process for the HVAC service provider. You can also check out the demo below to discover the powerful capabilities behind Sera's field service management software.
What is an HVAC Service Contract?
An HVAC service contract is a legal agreement between a homeowner or commercial client and an HVAC company. In this contract, terms are laid out regarding the year-round maintenance service the company will provide for the client’s HVAC system, air conditioning system, heating system, cooling system, or other HVAC equipment.
Maintenance plans can include a range of offerings, such as:
- System tune-ups
- HVAC unit checkups
- Priority service
- HVAC repairs
- Emergency services
- Seasonal maintenance services
- Service calls
- Additional add-ons
- Parts upgrades
What’s Included in an HVAC Service Contract?
Like any other legally binding contract, HVAC preventative maintenance contracts should be as in-depth as possible. That means including all the necessary components. The elements to include in your service agreements are as follows:
Business Information
The service agreement should include all the details of the HVAC company, such as its full legal name, address, phone number, contact person, and email address. This is important so that the client can easily get in touch with the service provider if they have any concerns about the agreement.
Client Information
The service agreement should include the client’s information, such as the customer's name, contact information, and the service location details, including the street name and number, city/town, state, and zip code.
Services Provided
To avoid confusion, service agreements must clearly outline the specific maintenance tasks to be performed. HVAC maintenance contracts should include detailed descriptions of the services and the components, such as the condenser, compressor, blower, heat exchanger, heat pump, thermostat, and air filter.
Maintenance Schedule
Service agreements should clearly state the agreed-upon number of maintenance visits and how often. Service frequency can vary, depending on the needs of the client. Annual maintenance plans should include the date of the first service (if already scheduled) and the date the contract ends.
Payment Terms
HVAC service contracts need to outline the client’s financial responsibility. Payment terms should include:
- Payment due dates
- Pricing
- Penalties for missed payments or late fees
- Acceptable payment methods (cash, credit card, checks)
Service agreements should clearly outline all costs. Transparent pricing helps to foster trust and loyalty between the customer and the service provider. Specify service rates, including labor costs, materials, and other expenses that impact the overall price.
Additional Details
Service contracts must clarify any additional details, clauses, or guarantees regarding services so that both parties understand their rights and obligations. The contract should state who is liable in the event of property damage during a service. Service agreements should also cover contract termination to facilitate a smooth process if either party wishes to end the service agreement.
Signature Line
The customer and provider must sign the agreement for the HVAC service contract to be valid. A signature indicates they acknowledge the terms and understand their respective responsibilities.
Reasons for Service Contracts
Many HVAC service providers rely heavily on maintenance contracts for the following reasons:
Increased Profitability
It’s common for businesses in the HVAC industry to experience times of heavy workloads and service droughts. During slower times of the year, HVAC companies can struggle financially, resulting in the business pooling resources to generate new leads and book more appointments.
HVAC service contracts help to make dry seasons more manageable. With a constant, predictable source of income, companies can maintain profits during slow periods.
Opportunities for Upselling
With more customer interaction, HVAC technicians have more opportunities to upsell during maintenance visits. Your staff can recommend upgrades and additional add-ons to increase your bottom line and prevent breakdowns and costly repairs for the customer.
Preserve Reputation
The door is left open for confusion without a detailed HVAC service contract. Confusion or miscommunication surrounding the details of regular HVAC maintenance leads to disputes that can jeopardize your company’s reputation.
With a clear and agreed-upon contract, all expectations of the service provider are outlined, leaving no room for confusion or hiccups. In this way, service contracts can enhance the customer experience.
Improve Efficiency
Without service agreements, HVAC work is highly unpredictable. Companies are given very short notice, meaning they must act swiftly to provide timely service. This business model makes it very difficult for companies to allocate resources efficiently.
HVAC service contracts outline the type of work that’s required and the equipment needed. This helps companies plan accordingly and not waste any resources in the process. This level of efficiency helps to save time and money.
HVAC Service Contracts Optimized with Sera
HVAC maintenance plans are highly beneficial for HVAC providers but require time when creating them manually. Templates are available, but there’s another solution that’s far more efficient and scalable.
Sera’s HVAC business software aims to revolutionize your HVAC business with a single interface. With our technology, managers can increase productivity through detailed job efficiency reports, and technicians create and present multiple quotes in minutes.
Our field service management software entails everything you need to run your business while driving growth, including HVAC service contract solutions. Additional features include:
- Automated scheduling
- Dynamic dispatching
- Membership growth tools
- Complementary HVAC price book
- Real-time online booking widget
- Profit-generating cash flow tools
Are you searching for a way to level up your HVAC business? If so, consider partnering with Sera. Schedule a demo today to learn more about our software solutions and how we can serve you.
