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What Is an HVAC Contract?
An HVAC contract, also known as an HVAC service contract, HVAC service agreement, or HVAC agreement, is a legally binding document that specifies the terms and conditions around services provided by an HVAC professional or company for maintenance and repairs on their HVAC system.
What Is Included in an HVAC Service Contract?
When drafting an HVAC contract, take the necessary amount of time and attention needed to make it as comprehensive and straightforward as possible. Use simpler terms so that parties know what is expected from them.
1. Business Details
For an HVAC contract to be valid, you must identify the parties entering it, including the HVAC company’s legal name, their addresses, and their role in the transaction. It is essential to include an acknowledgment of the agreement as well.
2. Service Definitions
An important part of an HVAC service contract is defining the services you are providing. You may want to attach a Statement of Work to make the services being provided clear.
3. Cost and Payment Terms
This section will want to include information about services costs and how the HVAC professional expects to receive payment. Include whether the price is a flat-fee, ongoing, or period charge and how payments should be made.
4. Termination Clause
If the HVAC service provider or client decides to end the agreement, there should be terms and conditions surrounding termination. You can also use this section to describe how non-payment issues are handled, including a lien .
5. Indemnification Clause
When a dispute arises, an indemnification clause defines who pays for which damages suffered by the prevailing party.
6. Service Modifications
The HVAC company and the client may want to change the agreement at some point. The service modifications section determines how both parties should handle any changes and how to notify the other party.
If a dispute arises, establish which governing laws will be applied to address it. Most agreements only require an acknowledgment of state laws.
8. Date and Signature Lines
The final item to include in your contract is signature lines for each party to sign. It should also consist of space to add the date for each party’s signature.
Here is an article on contract signing .
Advantages and Disadvantages of Having an HVAC Contract
When installing, repairing, or maintaining an HVAC system, the service provider will ask the client to sign an HVAC contract. While the agreement protects both parties’ rights, some limitations should be considered as well.
Advantages Of An HVAC Service Contract
When it comes to an HVAC service contract’s advantages, there are several that benefit both sides. These advantages include:
- A mutual agreement of what services will be performed and at what cost
- The signification of the seriousness to complete the HVAC service
- A set of instructions and agreements in case a dispute arises
Disadvantages Of An HVAC Service Contract
The disadvantages of an HVAC service contract include:
- Costs associated with drafting a legally enforceable contract
- Making it a challenge to cancel the agreement should a party’s situation change
As you can see, the advantages outweigh the disadvantages of an HVAC contract. If you are considering one for your company, consider the cost and how you can go about drafting the first iteration.
Image via Pexels by ready made
How Much Does An HVAC Service Contract Cost?
For a contract attorney to write an HVAC service contract, it can cost between $300 and $500. However, the cost could be higher or lower, depending upon the contract’s complexity. You can also use HVAC contract templates to help you get started on the process.
HVAC Contract Samples
Some contract needs are less complicated than others. For some situations, boilerplate agreements may work. Here are a few HVAC service contract samples that can help.
HVAC Contract Template
This HVAC contract (“Agreement”) is entered into by and between [HVAC contract name and address] (“Company”) and [Customer name and address] (“Customer”) on [Date]. Herein, Company and Customer are collectively known as “Parties.”
WITNESSETH, Customer agrees to hire Company to provide HVAC services as described below. WITNESSETH, Provider agrees to perform services to Customer as described below.
SCOPE: Company will provide services as described under local, state, and federal laws, including licensure, insurance, and bond requirements. [List of services provided, including limitations]
PAYMENT: Payment for work in the Agreement shall be as follows: [Fee schedule].
HOLD HARMLESS: Customer agrees to hold Company harmless or liability related to bodily injury, death, and property damage.
MODIFICATION: Parties agree not to make changes to the Agreement without written notification.
GUARANTEE: Contract agrees to remedy defects of faulty material or craftsmanship.
WITNESSETH, Parties agree to the terms and conditions contained herein and according to the state laws of [State.]
[Signature and dateline for the Parties]
HVAC Service Contract Template
By and below, [Name and address of HVAC provider] (“Provider”) and [Name and address of client] (“Client”) enter into this HVAC service contract (“Contract”) on [Date]. Provider and Client are herein referred to collectively as the “Parties.”
Whereas Client agrees to retain Provider for repairs to their HVAC system. Whereas Provider agrees to render such services.
SCOPE OF WORK: Provider shall perform the following maintenance and repairs to Client’s HVAC system, including: [List of repairs].
PAYMENT: Client agrees to pay provider the following amount for services as described above: [List payment terms and conditions or attach a completed invoice template .
TERMS: Provider and Client agrees to only the services above referenced. Client agrees to hold Provider harmless. Client agrees to the payment terms. Client will provide sufficient access to the property.
ACCEPTANCE: Provider and Client agree to the terms and conditions of the Contract referenced above, pursuant to the laws of the State of [State].
[Signature and datelines for each Party]
HVAC Installation Contract Template
THIS HVAC INSTALLATION CONTRACT (“Contract”) is agreed to by and between [Name and address of HVAC installer] (“Contractor”) and [Name and address of client] (“Client”) on [Date]. Contractor and Client are collectively referred to herein as “Parties.”
Whereas Client wishes to install an HVAC system.
Whereas Contractor agrees to provide such services.
ARTICLE 1. SCOPE: Contractor shall install an HVAC system for client, including [List services here or attach a Statement of Work]
ARTICLE 2. PAYMENT: Client agrees to pay [Price and terms] for services as described above.
ARTICLE 3. TERMINATION: Parties can terminate this contract at anytime by providing [Number of Days] notice in writing to the non-cancelling party at the contact information listed above.
ARTICLE 4. LEGAL FEES: Any disputes arising from the Contract may be settled by mediation or litigation. The prevailing party will receive civil award proceeds as well as a reimbursement for attorneys’ and legal fees.
ARTICLE 5: MODIFICATIONS: Parties can request a Contract modification by providing notice of such request in writing at the information above referenced.
ARTICLE 6. JURISDICTION: Any disputes arising from the Contract shall fall under the jurisdiction of [State].
Whereas Parties agree to the terms and conditions of the Contract herein.
[Signature and datelines for Parties]
Preparing Your HVAC Contract With A Lawyer Vs. A Template
While templates can help you get a jumpstart on a contract, it does not compare to the value added by a lawyer. Templates are usually recycled from other unrelated agreements into HVAC contracts, including a roofing contract , construction contract , landscaping contract , or plumbing contracts .
A lawyer can also protect your rights, guarantee his or her work, and help you on how to negotiate a contract . He or she will also prepare your contract so that it is proper for your business type, including sole-proprietorships and LLCs.
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