What is the minimum commitment for a service contract?

Our minimum service contract term is 12 months. Single-property, single-unit service agreements are available at the 12-month term without a multi-property or multi-unit requirement. There is no minimum unit count — a single restaurant RTU on quarterly service is a valid contract scope.

Can a service contract cover both our commercial property and the HVAC in our employees' homes?

Not under a single contract — residential and commercial service are billed separately. However, business owners and property managers who enroll their commercial property in a service contract and also become residential maintenance plan members for their personal homes receive a 10% discount on their residential plan rate.

Do you provide a certificate of insurance for the service contract?

Yes. A current certificate of insurance ($2,000,000 commercial general liability through The Hartford, workers' compensation through WCF Insurance) is provided at contract execution and renewed annually. We can add the property owner or management company as an additional insured on the CGL policy where required, on written request. COI requests are processed within 2 business days.

How does the contract handle equipment that fails beyond repair during the contract term?

The service contract covers scheduled preventive maintenance and priority emergency dispatch and repair at the contracted labor rate. When a covered unit fails beyond economic repair, the replacement is quoted separately at the contracted labor rate discount. The contract does not cover equipment replacement cost; it covers the labor to diagnose, maintain, and repair equipment within its remaining serviceable life.

Commercial HVAC Service Contracts in Draper, Utah

A commercial HVAC service contract is a written agreement between a building owner, property manager, or commercial tenant and a licensed HVAC contractor that defines: what preventive maintenance will be performed and when, what emergency response time the contractor commits to, and what the labor rate structure will be for repair calls during the contract term. The contract converts reactive, unpredictable HVAC service costs into a scheduled, budgeted maintenance program with a defined cost structure for emergency response.

For property managers overseeing multiple commercial properties in the south Salt Lake Valley, a service contract with a single contractor covering all properties reduces the administrative overhead of managing separate service relationships for each building, ensures consistent documentation formats for all properties, and provides priority emergency dispatch across the portfolio rather than competing for calendar availability against the contractor’s non-contract client base during peak demand periods.

Contract Structure

Equipment Schedule

Every service contract begins with a documented equipment schedule: a complete list of all HVAC equipment covered under the contract, with manufacturer, model, serial number, approximate installation date, and the maintenance frequency applicable to each unit. For properties with mixed equipment types (gas-electric RTUs, heat pump split systems, ductless mini-splits in server rooms, exhaust fans), the equipment schedule specifies the maintenance scope for each equipment type and the applicable visit frequency.

The equipment schedule is the document that prevents ambiguity about contract coverage at the time of a service call. A service contract that lists “all HVAC equipment at 1234 Lone Peak Parkway” without specifying equipment is not a service contract — it is a billing dispute waiting to happen. Every contract we issue names each unit by manufacturer, model, and serial number.

Maintenance Visit Scope

The contract specifies the scope of each scheduled maintenance visit by equipment type. For gas-electric RTUs, the scope follows the semi-annual or quarterly maintenance program documented on our Commercial HVAC Maintenance page: combustion analysis with altitude derate verification, refrigerant charge, coil cleaning, filter replacement, electrical inspection, and written service report. The scope is written into the contract, not described verbally at the time of each visit.

Response Time Commitment

Contract clients receive a documented emergency response time commitment. Our standard contract tiers:

Priority (Tier 1): 4-hour emergency response during business hours; 6-hour response after hours. Appropriate for buildings with medically sensitive occupants (medical and dental offices, senior living) or operations where HVAC failure directly interrupts service delivery (restaurants, food service).
Standard (Tier 2): 8-hour emergency response during business hours; next-morning response for after-hours calls that do not meet life-safety emergency criteria. Appropriate for office buildings and retail where occupant safety thresholds allow next-morning service for non-emergency after-hours failures.
Basic (Tier 3): Next-available scheduling with calendar priority over non-contract clients. No guaranteed response window, but contract clients are scheduled before non-contract clients for the same-day or next-day slots. Appropriate for light-use buildings and properties where the building owner self-manages until our first available slot.

After-hours emergency calls outside life-safety criteria (indoor temperature below 55°F, above 85°F with vulnerable occupants, gas leak, CO alarm, active water leak) are dispatched based on the contracted tier. Life-safety emergency calls are dispatched immediately regardless of tier.

Repair Labor Rate Structure

Contract clients receive a defined labor rate for repair calls during the contract term. Standard contract discount: 10–15% below published non-contract labor rates on all repair labor during the contract year, excluding equipment replacement quotes. Parts are billed at standard pricing. The defined labor rate provides budget predictability — property managers and building owners can forecast repair labor costs with a defined ceiling rather than variable market rates.

Documentation and Reporting

Every maintenance visit produces a service report in the format specified in the contract. For property management companies using building management software (Yardi, MRI, AppFolio, or similar), we can format service reports to match the property management platform’s maintenance record fields. At minimum, every service report includes:

Property address and unit identifier from the equipment schedule
Visit date, technician name and license number
All instrument readings in tabular format (combustion analysis, refrigerant, motor amperages, static pressure)
Filter replacement documentation with MERV rating
Condition rating per component (Pass / Advisory / Requires Attention / Safety Concern)
Any findings with recommended action and cost estimate

Annual summary reports are provided to contract clients in January covering the prior year’s service visits, aggregate equipment condition trends, and recommended capital planning items for the coming 1–3 years based on equipment age and condition data.

Contract Pricing

Service contract pricing is based on the equipment schedule, maintenance frequency, and contracted response tier. Indicative annual contract pricing for common south Salt Lake Valley commercial property types:

Single-tenant office suite (1 gas-electric RTU, semi-annual service, Tier 2 response): $650–$950 per year
Multi-tenant retail strip (4–6 RTUs, semi-annual service, Tier 2 response): $2,200–$3,800 per year
Restaurant (2 RTUs, quarterly service, Tier 1 response): $3,200–$4,800 per year
Medical or dental office (2–4 RTUs or split systems, semi-annual service, Tier 1 response): $1,800–$3,500 per year
Multi-property portfolio (property management company, 10+ RTUs across multiple sites): Quoted individually with volume discount on per-unit pricing

Contract pricing includes all scheduled maintenance visits and the contracted response tier; repair labor on service calls is billed separately at the contracted discount rate.

Contract Terms

Term: 12-month or 24-month initial term; annual auto-renewal with 60-day written cancellation notice option before the renewal date
Payment: Annual billing at contract start, or quarterly billing at a 5% surcharge for clients preferring quarterly payment
Transferability: Contracts transfer with the property at sale or lease assignment with written notice to us within 30 days of the ownership or occupancy change
Insurance: Certificate of insurance ($2,000,000 CGL, WCF workers’ compensation) provided at contract execution and renewed annually
Scope changes: Equipment added to or removed from the equipment schedule are documented as contract amendments at the next annual renewal or by written agreement for mid-term changes

Frequently Asked Questions

What is the minimum commitment for a service contract?: Our minimum service contract term is 12 months. Single-property, single-unit service agreements (one RTU, semi-annual service) are available at the 12-month term without a multi-property or multi-unit requirement. There is no minimum unit count — a single restaurant RTU on quarterly service is a valid contract scope. The contract structure is the same regardless of size: documented equipment schedule, written maintenance scope, specified response tier, defined repair labor rate.
Can a service contract cover both our commercial property and the HVAC in our employees’ homes?: Not under a single contract — residential and commercial service are billed separately. However, business owners and property managers who enroll their commercial property in a service contract and also become residential maintenance plan members for their personal homes receive a 10% discount on their residential plan rate. We serve both markets in the same neighborhood and the overlap is common — it makes sense to offer a combined relationship discount.
Do you provide a certificate of insurance for the service contract?: Yes. A current certificate of insurance ($2,000,000 commercial general liability through The Hartford, workers’ compensation through WCF Insurance) is provided at contract execution and renewed annually. We can add the property owner or management company as an additional insured on the CGL policy where required by the property lease or management agreement, on written request. COI requests are processed within 2 business days.
How does the contract handle equipment that fails beyond repair during the contract term?: The service contract covers scheduled preventive maintenance and priority emergency dispatch and repair at the contracted labor rate. When a covered unit fails beyond economic repair — a heat exchanger failure on a 16-year-old RTU, a failed compressor on a 14-year-old unit with multiple prior repairs — the replacement is quoted separately at the contracted labor rate discount. The contract does not cover equipment replacement cost; it covers the labor to diagnose, maintain, and repair the equipment within the unit’s remaining serviceable life. We provide a replacement quote promptly when a covered unit reaches end-of-life so the building owner or property manager can plan the capital expenditure.

Contact Draper Heating & Air Conditioning

For commercial HVAC service contract inquiries across Draper, Sandy, South Jordan, Bluffdale, Riverton, and Herriman, contact us. We provide a draft contract with equipment schedule, scope of services, and pricing within 5 business days of an on-site equipment inventory visit.

Emergency Line (24/7): (385) 336-1837
Address: 12244 Business Park Dr #155, Draper, UT 84020
Email: info@draperheatingairconditioning.xyz
Utah DOPL HVAC Contractor License: #11487612-5501
EPA Section 608 Universal: #608U-2011-318472

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Commercial HVAC Service Contracts Draper UT | Draper Heating & Air