HVAC service agreements: what to include, how to price them and how to sell them on every call

What an HVAC service agreement is

An HVAC service agreement (also called a maintenance plan, membership or club) is a contract where the customer pays a set price, yearly or monthly, for scheduled maintenance and a few perks. You get predictable work in the shoulder seasons and a customer who calls you first when something breaks.

The timing is built in. ENERGY STAR recommends a pre-season check-up by a contractor every year: the cooling system in spring and the heating system in fall, because contractors get busy once the weather turns. That gives you two natural visits to sell.

What to include in a residential plan

Keep the visit scope specific so customers know what they are buying and techs do the same work every time. ENERGY STAR's maintenance checklist is a good backbone:

• Every visit: check thermostat settings, tighten electrical connections and measure motor voltage and current, lubricate moving parts, clear the condensate drain, and test system controls and the start cycle.
• Cooling visit: clean evaporator and condenser coils, check refrigerant level, clean and adjust blower components for airflow.
• Heating visit: check gas or oil connections, gas pressure, burner combustion and the heat exchanger.
• Filters: either include standard filters or note that the customer replaces them (ENERGY STAR suggests inspecting them monthly).

Then add perks that cost you little but matter to the customer: priority scheduling during heat waves and cold snaps, a waived or reduced diagnostic fee, a percentage off repairs, and no overtime surcharge for members. Pick two or three and keep them simple enough for a tech to explain in one breath.

HVAC service agreement template: the clause outline

You do not need a 12-page contract. You need clear answers to the questions customers ask when something goes wrong. Use this outline as a checklist for your own agreement, then have a local attorney review the final version, since contract and consumer protection rules (especially for auto-renewal) vary by state.

How to price a residential maintenance plan

Start with what one visit actually costs you, then add the cost of the perks, then add margin. Here is a worked example with made-up numbers; plug in your own.

Do not price the plan as a loss leader unless you have measured what members spend on repairs and replacements later. Price it to make money on its own, and treat the extra repair work and first call on a replacement as upside.

Offer monthly billing. A small monthly charge is easier to say yes to on the doorstep than one annual payment, and it tends to stay active because the card is on file.

Pricing mistakes to avoid

• Too many perks. Every discount is a cost. Three clear perks beat eight vague ones.
• Ignoring drive time. A 45-minute tune-up with a 30-minute drive is a 75-minute visit.
• One price for every system. Charge more for each additional unit, and more for older or harder-to-reach equipment.
• Never raising the price. Review the plan price every year when wages and parts costs change.

Commercial HVAC service agreements

A commercial HVAC service agreement works the same way but with more units, more visits and tighter promises. Many commercial customers expect quarterly or monthly preventive maintenance rather than two visits a year. ANSI/ASHRAE/ACCA Standard 180 sets minimum inspection and maintenance practices for commercial building HVAC systems, and it is a useful reference for building your task lists.

• Equipment schedule: list every rooftop unit, split system and boiler with tasks and frequency for each.
• Response times: state how fast you respond to emergency and non-emergency calls, and during which hours.
• After-hours rates: say what nights, weekends and holidays cost.
• Reporting: a written report after each visit with readings, findings and recommended repairs.
• Access and safety: roof access, keys, escorts, lockout procedures.
• Pricing: price per unit per visit plus a fixed management fee, and quote repairs separately.

How to sell agreements on every call

The best time to sell a plan is right after you fix something. The customer just felt the pain of a breakdown and saw your tech do good work.

1. Present the plan on every repair and tune-up invoice, as a line item the customer can accept.
2. Show the math: "Today's repair would have been X less as a member, and your next diagnostic fee is waived."
3. Mention it when booking: "Are you on our maintenance plan? Members get priority during heat waves."
4. Pay techs a small spiff for each plan sold, and track close rate by tech.
5. Offer it to every new customer within a week of their first job, by text or email.

Renewals and why recurring revenue raises business value

A plan that does not renew is just a discounted tune-up. Set agreements to auto-renew with clear notice before the renewal date, schedule the next visit before the tech leaves, and call members whose card fails before the plan lapses. Most field service software, including ServiceTitan, Housecall Pro and Jobber, can handle recurring billing and visit reminders.

Recurring revenue also matters if you ever sell. A buyer looking at an HVAC company is buying future cash flow. A base of members who renew every year and call you first is cash flow they can count on, which is easier to value than one-off calls that depend on the weather.

Members also expect you to answer when the AC dies in July. Fullweek answers missed and after-hours calls, recognizes emergencies and books visits into your field software, so priority service is a promise you can keep. See our HVAC answering service or pricing.