Service Contracts
Last Post 30 Sep 2009 08:18 AM by engineer. 6 Replies.
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TechGromitUser is Offline
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23 Sep 2009 08:22 PM
I just received a bill from the contractor that installed my Geothermal system. They want to charge me $225 a year for a "Service Contract".   They are offering to do a "Operational and Safety inspection" and Priority Emergency Service, also they will throw in a Standard 1 inch Air Filter.  They say that my 5 year Parts and Labor Warranty that Water Furnace offers requires proper maintenance on the system.  While I can agree with that, $225 seems excessive to me. Perhaps is they back flush the system every year, it would be something for the money.  Does this seem excessive to anyone else?  Is this something I can do myself and how do I prove I have been performing proper maintenance?  I would rather pay another contractor for a $100 service call each year than to pay this $225 every year.  Here's a question, how does HVAC contractors feel about servicing equipment installed by another contractor?  Am I Married to the installation contractor?       
engineerUser is Offline
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23 Sep 2009 08:47 PM
Tell 'em you want an amp check and backflush if necessary. No harm in negotiating to receive what you perceive is $225 in value, or offer $150 or so.

$225 is reasonable insurance for folks whose desired sole interaction with the system is to set the thermostat. It may seem a bit steep to those of us who like to keep an eye on things ourselves. If you are the type who does your own oil changes and while under there checks on other loose, leaking or worn parts, then maybe $225 isn't such a hot deal.

Warranties depend on proper maintenance. A neglected system choked with dirt will lose airflow to the point where the compressor may die of injesting liquid refrigerant. That 4 digit repair isn't covered by a warranty.
Curt Kinder <br><br>

The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is - Winston Churchill <br><br><a href="http://www.greenersolutionsair.com">www.greenersolutionsair.com</a>
geomeUser is Offline
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23 Sep 2009 10:24 PM
With our installer, the service for the first year was included. Our system was installed in April of this year. The installer came out today for a fall check/system service. He checked the amps (including all aux. heat stages), checked/cleaned the coils (they were not dirty) (good filters and changing them when needed are very important), and he checked and increased the pressure on our closed loop. He may have checked out other things that I don't remember (it's been hectic here lately). I plan to have him out again in March.

We have a packaged system and a split system. For the split he had to go into the unfinished attic to check the air handler. He had easy access to the compressors in the basement. He was here just under 2 hours. He had a spray cleaner for the coil that didn't need to be washed off (apparently it comes off with condensation when the AC runs, and I ran it for a while after he left). He also had some blue tablets that he put in the drain pans to help keep unwanted growths (mold, etc.) from clogging the condensate lines.

The cost for a service contract will be $220 next year if prices hold. I asked a question similar to yours in another forum and was told that $220/2 units/2 times per year comes to $55 per unit per check, and that seemed very reasonable to him. I don't know what hourly rate they typically charge.

The installer told me the same thing about priority emergency service. I consider this to be a high pressure tactic (others may not agree). Also, if there is a delay getting emergency service, try and prove there aren't 17 people in front of you all with service agreements too! We're happy with our system and have told the owner that we want to be used as a reference for his other geothermal prospects. Had one call so far (he got the contract). If that and future good references doesn't get him out here fast when I need help, I don't think a service agreement will. Not saying the service agreement isn't worth it, just don't like the "priority" thing.

I understand that closed loop pressures may need adjustment a few times in the first year or two, so I will probably go with the service agreement for year 2. After that, I don't know. I will see how much work is done in year 2 and see what the price is for 1 check per year for year 3. I'll ask WF at that time if 1 service per year is sufficient to keep the warranty in full force (and try to get it in writing). WF could probably answer your question regarding others servicing your units (I assume they will need to be WF dealers), but if the installing company is providing any guaranty in addition to the WF guarantee I would suggest not letting anyone else touch the units (even if they are WF dealers).

With our cars it seems like the more I take them in for service, the more things go wrong (but I am not saying this would be true with our geothermal system). I still do my own oil changes because I do a better job than the dealer does. I could probably do some things well with maintaining and checking the geothermal system, but I can't and probably wouldn't want to check everything that they do. :-)
Homeowner with WF Envision NDV038 (packaged) & NDZ026 (split), one 3000' 4 pipe closed horizontal ground loop, Prestige thermostats, desuperheaters, 85 gal. Marathon.
TechGromitUser is Offline
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24 Sep 2009 09:13 AM
Posted By geome on 09/23/2009 10:24 PM

The cost for a service contract will be $220 next year if prices hold. I asked a question similar to yours in another forum and was told that $220/2 units/2 times per year comes to $55 per unit per check, and that seemed very reasonable to him.


This guy wants $225 a year + tax to check ONE system Once a year. My wife wants me to just get it, if I do, I'll see what kind of service checks they do.  If he's there only 5 minutes for a quick check, I will not be renewing next year.
engineerUser is Offline
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24 Sep 2009 09:36 PM
2 hours on site twice a year doing good work for $220 is a steal. Sign me up. The tech has travel time and vehicle costs before he / she arrives and after he / she departs.

Clogged condensate drains are a major nuisance (significant ceiling damage in a house where I assisted in a unit change out last summer - I am chagrined that I missed / failed to test for the possibility of the damage that occurred - a cascade of errors caused the result)

Judgment comes from experience. Good judgment comes from bad experience.

Curt Kinder <br><br>

The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is - Winston Churchill <br><br><a href="http://www.greenersolutionsair.com">www.greenersolutionsair.com</a>
Alex_in_FLUser is Offline
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29 Sep 2009 10:18 PM
5 x 225 = 1125 over five years. Thats a lot of service on something that is as dependable as a HP unit. As an FYI, most service contracts are highly profitabel for the contractor. Why else do you think he tossed in the "properly maintained" implied threat?

Avoid clogged drains by pouring one cup of bleach down them monthly and changing your air filter. Total cost $3/month.
engineerUser is Offline
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30 Sep 2009 08:18 AM
I agree that service contracts are often gravy for contractors.

However, major repairs / replacements caused by neglect are even MORE profitable.

I just had to pressure wash the evaporator on a rental mobile home package unit - entire front face of evap sheathed in dirt and dog hair. Unit icing up every night.

How much longer before the compressor died of liquid slugging? I dunno...

Overuse of bleach can corrode condensate drain trays. $3 filters may trap little dirt, fold up and fail as delta-P builds or just from repeated mechanical loading by blower cycles.
Curt Kinder <br><br>

The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is - Winston Churchill <br><br><a href="http://www.greenersolutionsair.com">www.greenersolutionsair.com</a>
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