How to Develop, Present, and Win HVAC Contracts 

The customer experience is integral to your business’s long-term success. It touches every aspect of your business—how you communicate, whether your techs show up on time, and the quality of your work. 

It also includes sales. Developing and presenting a professional, easy-to-understand HVAC contract is a big part of the selling process. 

So, what’s the best way to go about it? What key elements do you need to include? How can you make sure your clients know what they’re signing up for? 

This guide will answer all these questions and more. 

First, we’ll define HVAC contracts and explore some of their benefits. 

We’ll demystify how to write an HVAC contract before giving you some must-know tips on presenting them to your customers. 

We’ll finish up with a few steps you can take today. Follow these, and make HVAC contracts a powerful tool in your sales arsenal. 

The best businesses pay attention to the details. Do the same and become a competitive force to be reckoned with. 

What Are HVAC Contracts? 

HVAC contracts—what are they, and what purpose do they serve? 

HVAC contracts are agreements between an HVAC service provider—aka you—and a customer. They outline things like: 

• The services to be performed 
• The costs of the work  
• The terms of the agreement, i.e. the rules all parties must follow 

HVAC contracts are beneficial regardless of whether you work with residential or commercial clients. 

They define expectations. They make sure everyone is on the same page about services, timelines, and payment schedules. Customers know exactly what they’re paying for. This prevents misunderstandings and disputes. 

They also protect you and your customer should something go wrong. 

Another purpose of HVAC contracts is planning. You can use them to manage cash flow and map out workloads. 

FROM ONE OF OUR PARTNERS: How to Create a Payment Agreement for Your Contracting Business 

How Do HVAC Contracts Work in Practice? 

Let’s say a small business owner hires you to maintain their heating and cooling systems. Excellent. You put together a maintenance contract, and you and the client sign it. 

The contract details the specifics of your maintenance service. It says that you’ll check the refrigerant levels, clean the filters, and inspect the electrical components. 

It also specifies how often these services will be done—maybe every quarter. It might also include the cost per visit or a flat rate for the year. 

Everyone’s satisfied with the terms. The business owner knows when to expect your technicians and what they’ll do. You know when to schedule jobs and order supplies. 

This level of clarity saves time and reduces any confusion down the road. 

Ultimately, the contract leads to a strong relationship with the business owners. They trust your business because you’re predictable. And for you, you lock in ongoing revenue. It’s a win all around. 

Benefits of HVAC Contracts for Businesses 

We’ve touched on it briefly already, but this much is clear. An HVAC contract is beneficial for both you and your customer. 

It uplifts the customer experience by ensuring every interaction is transparent. It means there are zero surprises. 

Let’s explore the four benefits in more detail. 

Stable Revenue Stream 

The HVAC industry is competitive, even more so in local markets. To stay afloat, you need to use every advantage. 

When you get a customer to sign a service contract, you secure ongoing income. You know that you’ll get a certain amount of money. 

Using this insight, you can make smart decisions about your finances. You can plan for seasonal slowdowns. You can buy new equipment that allows you to expand your services. You might even hire more staff. 

These future-thinking investments fuel your business growth. 

FROM ONE OF OUR PARTNERS: Service Agreements 
 

Stronger Customer Relationships 

At the very heart of your business is your relationship with customers. 

Regular service agreements create ongoing touchpoints with clients. This nurtures trust. 

It also increases loyalty, which has financial benefits, too. Repeat customers spend 67% more than new ones. 

Plus, when customers feel like they’re getting value from you, they might refer others. It’s a ripple effect—one thrilled customer can lead to many more. 

Improved Scheduling and Workload Management 

You can plan your technicians’ time more efficiently. You can set your calendar far in advance. 

These benefits help you avoid last-minute scheduling issues. You can consistently meet customer needs without overworking your team. 

Better Inventory Planning and Resource Allocation 

You can anticipate what parts and supplies you will need for future service visits. This allows you to keep the right inventory in stock. 

The result? Faster repairs and less downtime for your clients. 

You’re ready to work on the jobs you’ve lined up. Better yet, you’re not wasting money on excess inventory you simply don’t need. 

Developing an HVAC Contract for Your Business 

There’s something to be said about a business owner that continuously improves their operations. 

They get better with every job. They implement lessons from mistakes and feedback. They strive to learn as much as they can. 

One way to achieve this is knowing exactly how to develop a robust, work-winning contract. 

Remember, a good contract doesn’t just protect you legally. It optimizes how you do business. It improves the customer experience and lays the groundwork for sustainable success. 

When you commit to improving your contracts, you’re committing to running your business at its best. 

Key Elements to Include in Your HVAC Contracts 

The first part of developing an HVAC contract is knowing what to include. Start with these core elements: 

• Scope of work: A clear outline of the services you’ll provide 
• Frequency of services: How often services will be performed, if applicable 
• Pricing and payment terms: The cost of your services and how payments should be made 
• Parts and materials: Who is responsible for the cost of parts—is it included in the contract price? Or will customers be billed separately? 
• Duration of the contract: The length of the contract 
• Termination clause: How can either party end the contract, and what are the repercussions? 
• Warranty information: Any warranties on parts or services 
• Liability and insurance: Insurance coverage and limits of liability 
• Customer responsibilities: Any responsibilities the customer must meet 

Steps to Writing an HVAC Contract 

Now that you know the key elements, here’s how you can start writing your HVAC contracts: 

• Step 1: List all the services you want to include in your contract. This could be routine maintenance or emergency repairs, for example. 
• Step 2: Decide how long your contract will last. Will it be for one year? Two years? Or on a per-job basis? 
• Step 3: Detail the cost of services and payment schedule. Will payments be made upfront or monthly? 
• Step 4: Write down exactly what’s included in your contract. Be specific and concrete. For example, say you’re doing routine maintenance. List out all the individual tasks. 
• Step 5: If you offer warranties, make sure to add this information. Explain what is covered and for how long. 
• Step 6: Make it clear how either party can end the agreement. You should also explain any fees or penalties. 
• Step 7: Note whether parts are included in the service. 
• Step 8: Protect your business by adding information about your insurance coverage. Write down the limitations of your liability. 
• Step 9: Before finalizing your contract, double-check everything. Make sure all terms are clear, and both parties understand their responsibilities. It’s a good idea to have a lawyer review your contract. They’ll ensure it’s legally sound. 

FROM ONE OF OUR PARTNERS: How to Scale Your HVAC Business 
 

How to Present HVAC Contracts to Your Customers 

HVAC contracts give your business recurring revenue. It also strengthens customer relationships. But it’s not always easy to articulate the value of these contracts to your clients. 

They don’t want to be ripped off—fair enough. It’s your team’s job to highlight the benefits from their perspective. 

Here are our top tips for presenting contracts to your customers. 

Train Technicians to Introduce Contracts 

Your technicians deal with customers face to face. Often, they become the first point of contact. 

For this reason, they need to know more than how to perform the technical side of the job. They should also be customer service superstars. 

They should know how to communicate the value of your services. That way, they can introduce the idea of a service contract. And they can do it naturally and in a way that’s personalized to the specific customer’s needs. 

For example, say a tech notices a client’s system is getting old. They’ll need a new one soon, but your tech knows they’re not interested in upgrading yet. 

They might recommend a service contract as an alternative way to keep things running smoothly. 

It’s not about pushing a sale. It’s about genuine value. It’s about helping them avoid expensive repairs or replacements later on. 

Pro tip: Role-play these conversations during team meetings. Teach techs how to explain the benefits and how to answer common objections or concerns. 

Simplify the Contract’s Presentation 

Keep things simple. Customers want their heating and cooling to work without fuss. They don’t want to be overrun with details they don’t understand. 

Pare back your contract and focus on the key points, benefits, and considerations. A one-page document outlining the main services and terms is often enough. 

In addition, have your sales materials handy. This might be a physical brochure or a digital document you can attach to an email. It should highlight the benefits of your service and answer common customer questions. 

Highlight the Benefits for the Customer 

Approach sales from the customer’s perspective. Explain the tangible benefits they’ll see by agreeing to a contract. 

For example, you might highlight these advantages: 

• Routine maintenance prevents major breakdowns. Your customer will have peace of mind. They’re less likely to need unexpected, costly repairs. 
• Well-maintained systems run more efficiently. This can lower energy bills. Make this a selling point—especially for commercial clients trying to control operating costs. 
• Customers with a contract should get priority during busy seasons. This means faster service when they need it most. 

Offer Different Contract Options 

Not every customer has the same needs. Some may only want annual maintenance. Others may prefer a more comprehensive package. 

Cater to everyone with different levels of service contracts. Make them flexible, too, so they can be tweaked to meet needs and limitations. 

Pro tip: Personalize your contracts. Suggest the best-fit plan based on the customer’s system condition or usage. 

Follow Up After the Service Call 

Don’t be discouraged if a customer doesn’t sign up for a contract right away. Follow up after the service call. 

A quick email or phone call to thank them for their business is an excellent opportunity to remind them about the benefits of a service contract. Sometimes, customers need time to think it over. A well-timed follow-up can seal the deal. 

RELATED ARTICLE: 5 Tips to Sell More HVAC Maintenance Contracts 

Next Steps: Adding HVAC Contracts to Your Sales Process 

Ready to make HVAC contracts a core part of your sales process? That’s great—get ready to reap the rewards. 

You can get started by taking the following steps: 

• Make it easy for your techs. Train them on exactly what to say when introducing contracts. Give them a rough script and explain how they can personalize it. 
• Keep your contracts simple. The easier they are to understand, the better. Of course, this doesn’t mean omitting important details. Strike a balance between user-friendly and comprehensive. 
• Think from the customer’s point of view. Highlight the benefits they’ll get. Make saying yes irresistible to them. 
• Create contracts for different customers. Meet varying needs and budgets. Allow for some flexibility to win over customers who are on the fence. 
• Don’t give up right away. If a customer decides not to go ahead, a short and friendly reminder can help. They might just change their mind. 
• Include all the key elements. Never send a contract through without double-checking the details. An accurate contract is a sound contract.