HVAC Annual Service Agreements - Worth the money???

Question

I have a 32 unit property, which has an office building, thus making 33 total HVAC systems. Have received a proposal from a reputable HVAC contractor to provide a 1 year Preventive Maintenance plan which includes 2 preventive cleanings per unit per year (and also includes testing, general maint, adjustments, etc) and includes 15% discount on repairs, 24 Service Calls and no Overtime. The cost is $6700 for 12 months. (note for comparison - I just replaced a down unit for $5200.00).

Is the Preventive Maintenance plan worth the money??

Thanks in advance!!

ASHLEY

Is the Preventive Maintenance plan worth the money??

Thanks in advance!!

ASHLEY

Tracy Streich · Answer

HVAC can be the biggest expense you have if they go out.   I think preventative maintenance is vital.   Negotiate the cost as best you can and make sure the cost will be deducted from any replacement cost after the PM has been performed.

Dick Rosen · Answer

I personally don't think they are worth it but I do believe in annual maintenance and if you work with a good HVAC company they will offer annual specials for maintenance during their slow times. I like to take advantage of those.

The real comparison in your numbers should be to the service not a downed unit. $6700 / 33 units / 2 services per year equals about $102 per service, that's not bad. Compare that to regular service in your area, in my area it's typically about $179 but the annual deals are around $79-$89. One of my vendors is offering a special right now of $19 per unit for inspection and cleaning, no contracts involved.