Elements of an HVAC Installation Contract Template Explained

When getting a new heating or cooling system installed, it is important to pay attention to the contract you’re signing. While it may seem unimportant at that moment, getting acquainted with the elements of an HVAC contract can prove crucial in case of performance issues. After all, problems with heating and cooling devices typically translate into expensive repairs and alarmingly big power bills.

This article will help you prevent all the potential issues by explaining key elements of an HVAC installation contract template.

HVAC Installation Contract—From A to Z

An HVAC installation contract is a legally binding document signed between an HVAC company or a professional and their client who’s getting a heating or cooling system installed. It is also known as an HVAC contract or an HVAC agreement.

The purpose of this legal document is to outline the terms and conditions of the company’s services and the client’s obligations. Besides the main terms, an HVAC installation contract should specify the services that a company for repairs and maintenance is providing.

Pros and Cons of Signing an HVAC Installation Contract

When the service provider is installing, repairing, or maintaining an HVAC system, they will give you the opportunity to sign the contract. While having a signed HVAC installation contract is recommended, it is not required. 

Before making a decision, you should consider all the advantages and downsides, and you can check them out in the table below:

Crucial Aspects of an HVAC Installation Contract

A good HVAC agreement should cover the following elements:

1. Performance guarantee—Always ask the installer to provide a performance guarantee. They should define the optimal performance of the HVAC system—including the uniformity of the temperature—and specify what happens if the system fails to perform
2. Warranty of the installer—The company should give you a warranty that covers a free repair due to poor workmanship, problems with the equipment, or any performance failure. Installer’s warranty usually lasts one year 
3. Payment terms—Choose the most flexible and convenient option when it comes to the payment schedule. You can negotiate these terms with the HVAC service provider. It is also recommended to withhold all the payments until the work is complete to motivate the contractor to finish the job faster
4. Insurance coverage—Check whether the company provides insurance and compensation coverage for their contractors to avoid being liable in case they get injured. You should also confirm whether the company has liability insurance to ensure you will be covered in case something unexpected happens
5. Additional work specifications—Define the contractors’ responsibilities clearly, including the smaller tasks, such as:
   • Providing electrical supply and equipment support
   • Securing required permits
   • Patching holes
   • Painting
   • Clearing out the trash
   • Removing old equipement

How Much Does an HVAC Installation Contract Cost?

Hiring legal assistance for writing an HVAC agreement can cost between $300 and $500, depending on the complexity of the contract.

Luckily, having an attorney is not a necessity—you can draw up an HVAC installation contract by using a template.

How To Write an HVAC Installation Contract on Your Own

When drafting an HVAC service contract, pay attention to the following sections:

1. Personal details—Legal names of the client and the company, addresses, and roles in the transaction
2. Service description—Detailed description of the services that the contractor will provide
3. Payment information—Total cost of the project, payment method, and payment schedule
4. Termination clause—Predetermined terms and conditions of the contract termination
5. Indemnification provision—Strategies for resolving potential disputes and determining who pays for the damages if necessary
6. Service modifications—Terms regarding the changes in the contract
7. Governance—Laws that will be in effect if a dispute occurs
8. Date and signatures—Signatures of both parties to make the document legally binding

Creating documents is not an easy task. If you don’t know how to write a contract, and see how it’s done the easy way!

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