HVAC service contracts define the terms of service, length, cost, and what needs to be done. Full Coverage SLAs are the most expensive but cover everything. Full labor service contracts cover repairs and maintenance, while preventive maintenance contracts cover routine tasks. Inspection service contracts include a specific number of inspections. Deliverables contracting relies on owner approval of deliverables. All contracts cover responsibilities, wages, material costs, and dispute resolution. Multiple contracts can be entered into for the same parties.
In the heating, ventilation and air conditioning (HVAC) industry, equipment maintenance is usually preceded by the issuance of HVAC service contracts. The main purpose of this is to define the terms of service as well as the length of service, cost and what needs to be done, and each contract package is unique to each type of service. These SLAs include coverage, full-labor, preventative maintenance, inspection, and end-use contracts.
The broadest type of HVAC SLA is the Full Coverage SLA. Labor, parts, materials, preventative maintenance, and emergency service are usually included. Repair and replacement coverage may be included or be available for purchase as part of this contract, which places full liability for all HVAC equipment on the contractor. These are the most expensive form of HVAC service contracts, but they can be more affordable in the long run. Contractors can sometimes terminate them early if they have costs for the assembly equipment.
Unlike a full coverage contract, a full labor service contract does not cover parts installation, which typically includes items such as chillers, boilers and air compressors. Instead, its coverage is focused on HVAC repairs, replacements, and maintenance. Large building owners, who can afford such equipment from manufacturers, are typically the only ones to benefit from this arrangement.
A preventive maintenance contract includes scheduled routine tasks, such as replacing belts and filters, cleaning the reel, lubricating the motors, and painting to prevent corrosion. These types of HVAC service contracts are less expensive up front but can be more expensive in the long run. An inspection service contract can often be purchased on an annual basis and includes a specific number of inspections. The tasks performed under this contract are typically simpler, and material costs may or may not be included.
A newer form of HVAC service contracts is deliverables contracting. This relies on owner approval of deliverables, such as their comfort level, which drives a contract payment schedule based on meeting predetermined goals. The risk is fully assumed by the external contractor.
All of these HVAC service agreements cover each party’s responsibilities, wages, material costs, and how to resolve disputes within one comprehensive document. The equipment, activities, procedures, reports, and unambiguous descriptions of the specific job to be performed must also be covered. Each contract also outlines procedures and details the responsibilities of the contractor and owner. Regardless of the specified contract, multiple contracts can be entered into for the same parties at any given time.
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