Coming To Terms
Creating an HVAC maintenance agreement can be a learn-as-you-go process.

Forward-thinking company executives who are responsible for multiple-site locations are increasingly receptive to an HVAC maintenance program, recognizing that the benefits far outweigh the relatively small cost involved. All equipment—from the simplest package to heating and cooling units to the giant centrifugal chillers—need basic service during their operating life. In the past, companies often did the minimum amount of work necessary. Increasingly, however, companies realize that they have invested too much money in the purchase of their equipment to do just minimal upkeep.

In a retailer’s maintenance program, a clean, comfortable environment is one of the most visible and may do the most to impact the bottom line. Customers will hang around longer, boosting sales. Employees welcome a comfortable environment, too, and this often shows in their productivity. Another benefit is the dramatic reduction in the number of costly equipment breakdowns. It’s not unusual for the number of emergency breakdowns to decrease up to 50% with a thorough and comprehensive maintenance program.

Proper maintenance also significantly prolongs the life of the equipment. Our experience has demonstrated that it is not uncommon for equipment life to be extended by as much as a one-third if proper maintenance is performed throughout the equipment life. Preventive maintenance also plays an important role in minimizing energy costs, which is becoming more significant with the rising costs of energy. Merely adjusting the operating sequence of equipment can save 25% to 35% each year. Cleaning coils, and removing soot from the fireside of a burner are among services that can provide an additional 10% to 30% energy savings, not to mention cleaner air and greater comfort.

For the companies that recognize the value of a maintenance agreement, the quality of service delivered becomes paramount in importance. Just what should one expect from a service provider? Here are some pointers:

• Select a service provider who has a proven track record of providing quality service at a reasonable cost and who is trustworthy. When you find the company that has a track record and also meets your own expectations, you will have found a gold mine. Using the company on a regular basis will keep you from wasting time soliciting bids as well as retraining a new company to your way of doing business.


• Expect the service provider to detail in its contract the number and timing of regularly scheduled maintenance inspections. If your service contract specifies the month of each inspection throughout the duration of the contract, you won’t have to concern yourself with arranging each visit. Inspections should be scheduled at least quarterly, and more often for large chillers, computer rooms and phone equipment rooms. Temperature extremes, age of the equipment, and nearby construction may necessitate more frequent check-ups.


• Insist the provider assign a single source as the primary contact on a daily basis. If you have an issue that requires an immediate response, the last thing you want is to be transferred from department to department or to be unsure who can take care of the problem. Having one point person improves response time and quality of service.


• It is important that the technician servicing your equipment is experienced and familiar with that particular type of equipment. Ask about the training policies and programs the contractor offers, and also about the training your assigned technician has received.


• Determine whether your contract will cover labor and material costs, should they be necessary. There are many different levels of coverage, ranging from agreements that cover just annual maintenance to those that include repairs, parts and even overtime labor. Make sure to get the specifics on what items are included in the agreement price and what items will be billed separately.


• Make sure to see detailed tasking performed as past of the maintenance inspections. Too many contractors practice flashlight maintenance, where they show up for a maintenance inspection and do little more than shine a flashlight to make sure the unit is still there and running. A maintenance program is only as effective as the tasks being performed and the quality with which they are performed.


• Expect your service provider to serve as an HVAC consultant and advise you honestly of pending problems. You should be informed at least one year in advance if aging equipment needs to be replaced so it can be budgeted. Service providers should recommend upgrades and change-outs in order to avoid costly repairs, as well as provide recommendations on ways to save energy.
  Know that you will have preferential treatment for emergencies. The key to this preferential treatment is an extremely responsive call center. Some vendors offer the ability to their clients to have 2-hour or 4-hour responses (most take the 2-hour) around the clock. If for some reason, the vendor doesn’t respond, the contract should state that the vendor will reimburse the client.


• Don’t expect a cookie cutter pricing strategy. A good service contract will take into account the different types of equipment as well as the preferences of the building owner or manager, and will be priced accordingly. A good maintenance program will be specifically tailored to the needs of the equipment and the objectives of the building owner or manager. The price of the maintenance agreement will be directly related to the level of maintenance being performed.

If HVAC maintenance is viewed simply as an expense, it is easy to fall into the trap of thinking you are saving money by opting for a less expensive maintenance program, or eliminating preventive maintenance altogether. Too many companies, however, have learned the hard way sacrificing a maintenance agreement may be cheaper in the short term, but ends up costing much more over a period of time. Indeed, a greater number of executives responsible for managing facility maintenance are realizing that a quality, comprehensive maintenance program for their HVAC equipment is one of the best long term investments they can make.