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HVAC Contracting: What Should Be In A Servicing Agreement?

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Do you need to write up your servicing agreement, but there are no guidelines to follow? A good agreement eliminates the headaches of having to scramble every time your AC develops a problem. But how do you know what should go into this agreement? Here are the essential components of an agreement for HVAC contracting, including what to include:

1. Details of Both Parties 

You should establish the parties making the agreement, i.e., yourself and the HVAC contractor. These details include your contact information, such as name, address, phone number(s), email address(es), and website address (if applicable). 

Also, include the HVAC contractor's business license number or tax ID number if you have one. If the company is a sub-contractor working for someone else's company, you can list the main company as well.

2. Statement of Work Including Service Modifications

There should be a scope of work that is agreed upon between you and your client. This will include all tasks, including but not limited to electrical repair, refrigerant recharge, or any other service that is needed to ensure your equipment is operating at its best. 

You should also show any service modification. It basically details what happens if additional work is required due to different circumstances. It protects both parties from surprises, and there are no surprises for either party when everything is spelled out beforehand. 

3. Payment Clause

Any HVAC contracting agreement can't be complete without a payment clause. It provides details on how much will be paid, when it will be paid, and how often payments will occur. The contract should also specify whether payments are made annually or monthly and whether they're based on services performed or hours worked. 

4. Indemnification Clause 

An indemnification clause is an integral part of your HVAC service contract. Essentially, it outlines what happens when there is damage in the course of HVAC repairs and maintenance. It is beneficial because it protects the homeowner using the contractor's insurance. 

5. Termination Clause 

This is your exit strategy if you're working with someone who doesn't live up to their end of the bargain. Think about what it will take for you to terminate (quit) your business relationship and make sure that both parties have agreed on it. 

And make sure that you understand your obligations if you decide to terminate early—you might have to pay for time not worked, equipment not returned, etc.

Keeping your central air conditioning is crucial to shielding your family's comfort from climate extremes; it makes servicing agreements desirable for predictability. Call an HVAC contractor to discuss a suitable arrangement for HVAC contracting for your home's needs.