Commercial HVAC Service Contracts — Omaha Heating and Air Conditioning
Commercial HVAC service contracts structure the ongoing maintenance and emergency dispatch relationship between us and our commercial customers. The contract defines what we’ll do, when we’ll do it, how quickly we’ll respond to emergencies, what’s included in flat-rate pricing, what’s billed separately, and how the relationship operates across multiple years. Well-structured contracts protect both parties: the customer has predictable annual cost, defined response time expectations, and documented service deliverables; we have predictable revenue, scheduled work calendar, and clear scope boundaries. Poorly-structured contracts (or no contract, just per-call billing) create friction in both directions — customers don’t know what to expect when they call, and we don’t know what scope is included vs. extra. This page covers our three-tier contract structure, what’s included in each tier, how response time commitments are structured and held, the parts-and-labor coverage scope, contract administration, and when contracts make sense vs. when per-call service is more appropriate.
Three-Tier Contract Structure
We offer three contract tiers matched to commercial customer needs:
Tier 1 (Comprehensive)
The highest-tier contract, designed for commercial customers where HVAC reliability is operationally critical or where building scope warrants the most extensive coverage:
- Scheduled maintenance frequency: monthly visits for larger buildings, quarterly for mid-sized.
- Response time commitment: 2-hour business hours, 4-hour after-hours, 24/7/365 coverage.
- After-hours pricing: waived (no after-hours premium charged).
- Diagnostic fees: waived for in-scope equipment.
- Repair labor discount: 25% above non-contract labor rates.
- Parts coverage: contract-listed parts included; specialty parts billed at cost.
- Filter management: included in maintenance scope.
- Refrigerant coverage: first 5 lbs annually included; additional billed at our cost.
- Reporting: per-visit written reports plus monthly summary plus annual capital planning recommendations.
- Building automation system support: mechanical-side coordination included; deep BAS programming billed separately.
- Indoor air quality verification: ventilation rate measurement, filtration verification, post-pandemic IAQ baseline included.
Tier 1 fits: medical and dental facilities, restaurants with operational HVAC dependency, multi-tenant buildings with sophisticated lease HVAC provisions, mission-critical facilities, larger commercial buildings (15,000+ sq ft typical), buildings with building automation systems requiring coordinated mechanical-and-controls service.
Tier 2 (Comprehensive Mid-Tier)
The mid-tier contract, designed for commercial customers wanting strong service-level commitments without the highest-tier scope:
- Scheduled maintenance frequency: quarterly visits.
- Response time commitment: 4-hour business hours, 6-hour after-hours.
- After-hours pricing: 50% reduction (substantially less than non-contract rate).
- Diagnostic fees: 50% reduction.
- Repair labor discount: 15% above non-contract labor rates.
- Parts coverage: common-wear parts (capacitors, contactors, igniters, flame sensors, basic relays) included; major parts billed.
- Filter management: included in maintenance scope.
- Refrigerant coverage: first 3 lbs annually included; additional billed at our cost plus modest markup.
- Reporting: per-visit written reports plus quarterly summary.
Tier 2 fits: most light-to-mid commercial customers, professional offices, retail with extended hours, restaurants with standard operational tolerance, multi-system buildings without critical-reliability requirements. The middle tier is our most common contract, fitting customers who want service-level commitments but don’t need Tier 1’s most comprehensive coverage.
Tier 3 (Scheduled Maintenance)
The base-tier contract, designed for smaller commercial customers who want scheduled maintenance but minimal additional inclusions:
- Scheduled maintenance frequency: twice-yearly (spring AC, fall heating).
- Response time commitment: next-business-day with prioritization above non-contract customers.
- After-hours pricing: standard commercial after-hours rates (no contract discount).
- Diagnostic fees: standard rates.
- Repair labor discount: 10% above non-contract labor rates.
- Parts coverage: not included; all parts billed.
- Filter management: included at scheduled visits only.
- Refrigerant coverage: not included; all refrigerant billed.
- Reporting: per-visit written reports.
Tier 3 fits: small commercial customers (single-RTU retail bays, small single-tenant offices), customers transitioning from per-call service to contract relationship, customers who prefer minimal contract scope with most repair work billed per-occurrence.
Response Time Commitments — How They Work
Response time commitments establish the maximum time from emergency call to technician dispatch (not arrival on-site). The commitments are targets backed by operational practice rather than absolute guarantees:
Normal Operating Conditions
Under normal conditions (typical business operations, no severe weather event), we meet or exceed contracted response times in nearly all cases. Tier 1 customers calling at 10:00 AM business hours typically have technician dispatched within 30-90 minutes, well inside the 2-hour commitment. Tier 2 customers similarly receive faster-than-committed response under normal conditions. The commitment establishes the maximum we’ll allow; actual practice typically beats commitment.
Severe Weather and Demand Surge Conditions
During severe weather events (deep cold weeks in winter, sustained heat waves in summer, post-storm damage events), commercial emergency call volume can substantially exceed normal demand. Specific examples: January 2019 polar vortex week, August 2020 derecho event, May 2023 hailstorm. During these events:
- Tier 1 customers receive the highest priority dispatch positioning regardless of demand. The 2-hour commitment may extend to 4-6 hours during peak surge conditions.
- Tier 2 customers receive priority above non-contract customers but below Tier 1. Response times during severe demand events may extend beyond the 4-hour commitment but typically remain within 8-12 hours.
- Tier 3 customers receive standard prioritization above non-contract customers.
- Vulnerable commercial situations (medical facilities with patient appointments, restaurants approaching service with no backup, mission-critical operations) receive consideration for priority dispatch regardless of contract tier.
We’re transparent with customers during demand surges about realistic response times. We don’t promise what we can’t deliver; when severe weather is straining dispatch capacity, customers calling for service hear honest assessment of expected response time rather than commitments we can’t meet.
Tier-Adjustment Discussions
Customers whose actual service needs don’t match their contracted tier benefit from tier adjustment discussions. Common scenarios:
- Tier 3 customer needing faster response: tier upgrade to Tier 2 provides committed response time without per-call premium pricing.
- Tier 1 customer with very few service calls: tier downgrade to Tier 2 reduces annual contract cost while maintaining strong service-level commitments.
- Mid-year tier upgrade: pro-rated against remaining contract year; processed administratively.
- Mid-year tier downgrade: processed at next annual renewal because mid-year downgrade complicates service-already-received accounting.
Parts and Labor Coverage — What’s In vs. Out
Each tier has specific parts coverage scope. Understanding what’s covered matters for budget planning:
Always Included Across All Tiers
- Scheduled maintenance labor (per-visit work)
- Maintenance-visit consumables (test materials, cleaning supplies, calibration verifications)
- Equipment inspection and condition documentation
- Written service reports
Tier-Specific Inclusions
| Item | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|
| Standard filters | Included | Included | Included at visits |
| Premium filters (MERV 13+) | Included | Billed at cost | Billed |
| Capacitors, contactors, basic relays | Included | Included | Billed |
| Igniters, flame sensors | Included | Included | Billed |
| Refrigerant (annual allocation) | 5 lbs included | 3 lbs included | Billed |
| Gas valves | Cost only | Billed | Billed |
| Blower motors | Cost only | Billed | Billed |
| Compressors | Cost only | Billed | Billed |
| Heat exchangers | Cost only | Billed | Billed |
| Control boards | Cost only | Billed | Billed |
| Specialty BAS components | Billed | Billed | Billed |
Always Billed Separately
- Equipment replacement projects (RTU replacement, major capital work)
- Building automation system programming and software work
- Ductwork modifications beyond maintenance scope
- Specialized equipment (cooling towers, chillers, industrial process HVAC)
- Code compliance upgrade work (ventilation rate increases, economizer retrofits, etc.)
- Building IAQ assessment beyond standard verification scope
- Customer-requested work outside contract scope
Contract Administration
Contract Year and Renewal
- Contract year starts on enrollment date; runs 12 months.
- 30-day renewal notice provided before anniversary.
- Auto-renewal at the anniversary unless either party gives 30-day notice of non-renewal.
- Multi-year contracts available with pricing discount; common terms 3-year and 5-year.
Pricing Structure
- Annual lump-sum payment or quarterly installments standard; some customers prefer monthly billing.
- Multi-year contracts may include modest annual escalation clauses to address material cost inflation; without escalation, multi-year pricing is locked at start-of-term rates.
- Tier upgrades during contract year processed pro-rata; tier downgrades processed at anniversary.
Equipment Inventory Documentation
Each contract maintains documented equipment inventory: manufacturer, model, serial number, installation date (estimated when original installation documentation isn’t available), capacity, current condition assessment, expected remaining service life. Inventory updated annually with capital planning recommendations. Equipment added or removed during the contract year (new installation, removed equipment, equipment replacement) is documented with corresponding contract scope adjustment if material.
Capital Planning Coordination
Tier 1 contracts include annual capital planning recommendations: equipment approaching end of useful life, anticipated replacement timing, estimated replacement cost, energy efficiency upgrade opportunities, code compliance upgrade requirements. Tier 2 contracts include capital planning recommendations as part of annual summary reporting. Tier 3 contracts include capital planning notes as part of routine maintenance reports without dedicated capital planning summary.
Pricing
Specific contract pricing depends on building inventory, scheduled visit frequency, and tier selection. Indicative ranges:
- Tier 3 (small light commercial, single RTU twice-yearly): $585–$1,485 annual.
- Tier 2 (mid-commercial quarterly, 3-5 RTU building): $2,485–$5,485 annual.
- Tier 2 (larger commercial quarterly, 5-8 RTU building): $4,485–$8,485 annual.
- Tier 1 (mid-commercial monthly, 5-10 RTU building): $5,485–$11,485 annual.
- Tier 1 (larger commercial monthly, 10+ RTU building): $9,485–$22,485+ annual.
- Restaurant-specific contracts (including MAU service): typically $3,485–$10,485 annual depending on equipment scope.
- Medical/dental contracts (with IAQ verification scope): typically $3,485–$11,485 annual depending on facility scope.
- Multi-year contract discount: 5–10% per year on 3-year contracts, 10–15% on 5-year contracts.
- Equipment addition mid-contract: pro-rated against remaining contract year.
Detailed contract proposals provided after initial building assessment visit. The assessment visit (typically $485–$1,485 depending on building scope) produces equipment inventory, condition assessment, recommended contract structure, and detailed pricing.
Frequently Asked Questions
- Which contract tier is right for my business?
- Depends on your operational HVAC dependency and building scope. Tier 1 fits operationally-critical environments (medical, restaurants, multi-tenant buildings with lease HVAC provisions, larger commercial 15,000+ sq ft). Tier 2 fits most light-to-mid commercial customers wanting strong service-level commitments without highest-tier scope. Tier 3 fits smaller commercial properties wanting basic scheduled maintenance with minimal additional inclusions. The assessment visit identifies your specific situation and recommends tier match. Many customers start at Tier 2 as the default fit; tier adjustment is straightforward at contract renewal once actual service utilization is known.
- What happens if I have a major equipment failure during my contract year?
- Major equipment replacement (RTU replacement, compressor replacement on Tier 2/Tier 3) is billed separately as a capital project outside contract maintenance scope. Tier 1 contracts include some major parts at our cost (with labor billed at contract rates); Tier 2 and Tier 3 contracts bill parts and labor at standard rates with applicable tier discount on labor. The contract isn’t equipment insurance; it’s maintenance service with defined parts coverage. Customers expecting equipment failure protection should consider equipment warranties (which transfer with installation work) and capital reserve planning. The contract benefits during major failure: priority dispatch positioning, applicable labor discount, faster overall project coordination because of established relationship.
- Can I cancel my contract mid-year?
- Yes. Cancellation terms: pro-rated refund of unused portion calculated as (contract year remaining / 12 months) × annual fee, less value of services already received during the contract year. Pre-paid annual lump-sum cancellations sometimes produce minimal refund because the scheduled tune-up visits front-load the contract value. Multi-year contracts have early-termination provisions documented in the contract terms; typically a partial early-termination fee plus prorated refund. Cancellation isn’t penalized in our relationship sense; if the contract isn’t delivering value matched to its cost, ending the relationship is reasonable. The economics favor staying with the contract when the building scope and service utilization match the tier; customers who consistently aren’t using the included services should consider tier downgrade rather than cancellation.
- Do you transfer contracts when the building is sold?
- Yes. Contracts transfer with property ownership change for the remainder of the contract year. The new owner can choose to continue the contract at renewal or terminate at the next anniversary. Building purchases often involve the new owner requesting a building HVAC assessment as part of due diligence; we coordinate that assessment with appropriate confidentiality and produce documentation that supports either continuing the existing relationship or transitioning the new owner to a tier that fits their operational priorities. Existing contracts in good standing transfer without renegotiation; new owners renegotiate at anniversary.
- Are contracts worth it compared to per-call service?
- Depends on actual service utilization. Customers who would have used the included services anyway capture meaningful cost savings through the contract: included parts, waived after-hours fees (Tier 1), reduced after-hours fees (Tier 2), priority dispatch positioning, scheduled maintenance discipline that prevents reactive emergency calls. Customers who would have minimal service activity may find per-call service more economical. The break-even point typically falls at: Tier 3 break-even around 2 service calls per year, Tier 2 break-even around 3-4 service calls per year including one after-hours call, Tier 1 break-even around 4-6 service calls per year with multiple after-hours calls. Most commercial customers using HVAC operationally cross the break-even threshold; very small commercial properties with minimal HVAC dependency sometimes don’t.
Contact Omaha Heating and Air Conditioning
Our Regency Parkway office is in west Omaha at the I-680 and West Dodge Road interchange. For commercial service contract consultation, building assessment, tier selection discussion, or to transfer an existing contract from a previous property owner, ask for Andre Patel during business hours.
- Emergency Line (24/7): (402) 258-6703
- Address: Lake Regency Building, 450 Regency Pkwy #370, Omaha, NE 68114
- Email: info@omahaheatingairconditioning.xyz
- City of Omaha Mechanical Contractor License: #MC-2014-08847
- Iowa Plumbing & Mechanical Systems Board License: #B-027841
- EPA Section 608 Universal: #608U-2014-227841
Office Hours
- Emergency Service: 24 hours a day, 7 days a week
- Office Staff: Monday – Saturday, 8:00 AM – 5:00 PM
- Closed: Sundays and State/Federal Holidays (emergency line always active)