What to Expect in Your Heating Replacement Contract
Replacing a heating system is real money and real disruption. The contract is the one document that keeps everyone honest, ties scope to cost, and spells out who carries which risks. The best agreements anticipate common points of friction, record the assumptions behind your price, and leave you with a clear path if something goes sideways. If you are planning a heating replacement, or lining up a heating unit installation in a renovation, take the time to read the contract with the same attention you’d give a car purchase or mortgage disclosure. The details here determine whether your installation day ends with warm air and a handshake or extra invoices and a headache.
The contract’s job and why language matters
A heating replacement contract is more than a quote. It is a technical scope, a logistics plan, a safety commitment, and a payment agreement in one. It records the exact equipment to be installed, includes model numbers and performance ratings, defines how the crew will reach your mechanical room, and clarifies who handles permits and inspections. It also sets out the rules of engagement for surprises, like asbestos tape on old ducts, an undersized gas meter, or rotten roof sheathing under a flue cap. Precise language prevents disputes. Vague phrases like “as needed” and “similar model” leave room for arguments later.
Contracts I trust follow a simple pattern. They promise what will be installed and how, they explain what is excluded, they define change orders, and they lay out payment timing tied to milestones, not vague dates. They also note how long you’re covered by warranties, who honors them, and what maintenance is required to keep them valid.
Scope of work that actually tells you something
The scope should read like a parts-and-labor map, not marketing copy. Expect full equipment identification: manufacturer, model numbers, heating capacity in BTU/h, efficiency ratings like AFUE for furnaces or HSPF/COP for heat pumps, and any matched coil or air handler pairings. If you are moving from a furnace to a heat pump, the contract should explain whether you will have electric resistance backup, a dual fuel setup, or no backup at all, and under what outdoor temperature the system will rely on auxiliary heat.
If ducts are part of the job, look for notes about modifications, sealing method and target leakage, insulation levels, and whether balancing dampers will be installed. On hydronic systems, the contract should list boiler type, modulation range, pump brand, pump head calculations, air separator, expansion tank size, and controls strategy. Even for a simple heating unit installation, the scope should mention condensate routing, safety switches, and whether existing line voltage and breakers suffice.
One line that matters more than it seems is the demo and disposal clause. Old furnaces and boilers are heavy, and some contain mercury flame sensors or asbestos gaskets. The contract should say that the contractor will remove and properly dispose of the old unit and debris. It should also state whether patching is included after flue removal or floor penetrations. I have seen beautiful new equipment installed in a mechanical room while the owner had to chase down someone else to fill a 6 inch hole where a chimney thimble used to be.
The bid’s assumptions drive the final price
A good contractor writes down the assumptions that allow the price to hold. If the price includes a basic crane pick for a package unit on a low roof, that should be stated, along with what triggers a crane upsize fee. If the gas line has to be upsized to meet new input, the contract should note whether that is included up to a certain length, and whether meter upgrades are the utility’s responsibility.
Look for load calculation assumptions. If your home is getting a 60,000 BTU furnace because the contractor ran a Manual J load at 15 degrees outdoor design temperature, that should be recorded. A clear load reference protects you from upsells later and gives a basis for sizing ductwork and return air. If the contract doesn’t mention a load calculation at all, ask for it and be willing to pay for that time. Right-sized equipment runs longer, quieter, and more efficiently. Oversized equipment short cycles and fails early.
Electrical assumptions belong in writing as well. Indoor air handlers and heat pumps draw more power than old gas furnaces. The contract should state whether your panel has capacity, if a new breaker will be added, wire gauge and routing, GFCI or AFCI requirements, and who handles the permit inspection. When electrical work is excluded or contingent on site conditions, it should say so explicitly to avoid surprise electricians on install day.
What is excluded on purpose
An honest contract lists exclusions as clearly as inclusions. Common exclusions that can be reasonable, if they are up front: drywall repair after new line set routing, painting, asbestos abatement, carpentry to enlarge a closet or platform, and structural changes for attic access. Some contractors exclude thermostat replacement unless specified, particularly when the homeowner wants to keep a smart thermostat they already own. They might exclude attic walkway installation or lighting. They might exclude indoor air quality accessories unless specified by model.
Two exclusions that deserve a second look: refrigerant line reuse and existing duct adequacy. If the contract proposes to reuse old line sets during a heating system installation with a heat pump, it should state the condition requirements and flush procedure, and confirm compatibility with new refrigerant. For ducts, if the plan is to leave them as is, the contract should say whether they were inspected, pressure tested, or simply assumed to be acceptable. You cannot fix comfort problems with a high efficiency unit if the ducts leak half their air into the attic.
Change orders: the fact of life clause
No one likes change orders, but surprises in old mechanical rooms are common. The contract should define the process for changes: a written description of the added work, a price, and your signature before proceeding, except for emergencies where immediate action is required to make the site safe. Good contracts include a unit price schedule for predictable adders, such as cost per linear foot of gas pipe beyond allowance, per foot of line set replacement, or per additional PVC vent penetration. Transparent unit pricing reduces haggling on site.
Timing matters too. If a code deficiency surfaces during inspection, the contract should state how schedule impacts are handled. Regional practice varies, but I like language that says the contractor will propose corrective work within one business day and hold their crew schedule for up to another day if you authorize the change. After that window, the contractor may need to roll another crew, and remobilization fees come into play. It is fair to codify this, because idle crews are expensive, and you do not want to pay for inefficiency without control.
Permits, code, and inspections are not optional
Permits cost money and take time. Your contract should state which permits are required for the heating replacement, who pulls them, and who pays the fee. In most jurisdictions, the licensed contractor pulls the permit and includes the cost in the job. There should be a line about scheduling inspections, presence during inspection, and who corrects any items noted by the inspector. If the job includes gas appliances, expect pressure testing and tagging. For heat pumps, expect electrical inspection and sometimes a mechanical inspection for condensate handling and clearances.
Code references in the contract help. For example, installation to the latest edition of the International Residential Code and the manufacturer’s instructions, with clearance to combustibles maintained per manual, and combustion air sized per code. If the unit vents through the sidewall, the contract should mention termination clearances to windows, doors, grade, and other building features. For attic installations, note pan drains, float switches, and overflow protection. These details show the installer is planning a compliant job, not just swapping boxes.
Equipment specifics: model numbers, ratings, and matching
I look for model numbers that are not placeholders. “Install Goodman furnace” is not enough. “Install Goodman GMVC960603BN, 60k BTU, 96 percent AFUE, two stage, variable speed ECM, matched with evaporator coil CAPFA3626C6” is better. For a heat pump, you should see outdoor unit and indoor coil or air handler models that achieve a listed AHRI matched efficiency. AHRI numbers matter for rebates and for performance. If you are counting on utility incentives, the exact pairing has to meet the program’s threshold, sometimes with a specific thermostat.
Ask to see the submittals, not a glossy brochure. Submittals give dimensional drawings, electrical data, and airflow ranges. The installer will use these to confirm that the unit fits through your door and into its final location, that the plenum can be built without strangling airflow, and that the line voltage matches your panel. If the contract includes a furnace that is an inch wider than your closet door, that is a problem waiting to happen.
Ductwork and airflow expectations
Many contracts undershoot the effort required to move air quietly and efficiently. If your ducts are borderline, a simple equipment swap is a bandage. The contract should include a target external static pressure and confirm the blower can meet designed airflow at that static. It should specify return air size and whether additional returns will be cut in. On existing systems with high static, I like to see a note that the contractor will test static pressure at completion and adjust blower tap or fan speed to meet the equipment tables.
Noise often starts with undersized return ducts and poorly built plenums. If you have had a whistling return or a rattle near the supply trunk, mention it before signing. Then, look for the contract to include an allowance for duct corrections. Even a few hundred dollars earmarked for return enlargement or a lined plenum can make a big difference in comfort. On hydronic systems, airflow becomes water flow. The contract should state design delta-T and the balancing method, especially if you have multiple zones.
Refrigerant handling, line sets, and leak testing
For heat pumps and split systems, the refrigerant details in the contract are often a proxy for quality. It should state whether a new line set will be installed or an existing set reused after flushing. It should describe nitrogen purge during brazing and a pressure test, typically 300 to 500 psi with nitrogen for a set duration, followed by deep vacuum to below 500 microns with decay test. If those phrases are absent, ask the salesperson to explain the company’s procedure. Cutting corners here leads to leaks and early compressor failure.
Line set routing should be explicit. Does the route cross an attic, exterior wall, or soffit? Will the line hide in a chase with a finished cover or a basic UV rated line hide? Condensate routing and freeze protection should be noted in cold climates. In multi story homes, a condensate safety switch and secondary pan with drain or float switch is standard practice. If that is not in the contract, request it.
Thermostats, controls, and integration
Modern systems often require specific thermostats to unlock staged heating, humidity control, or outdoor temperature lockouts. The contract should specify the thermostat model, whether it includes a remote sensor, and if the wifi setup is part of the job. For dual fuel systems, the control strategy needs to be defined: at what temperature does the system switch from heat pump to furnace or from heat pump to electric backup, and is that lockout based on an outdoor sensor or a utility rate signal.
If you intend to integrate with existing home automation, make sure the chosen thermostat supports it and that the contractor will not disclaim troubleshooting beyond basic operation. That boundary should be noted. Some installers will connect the device and show basic operation, while deeper integration is the homeowner’s or IT consultant’s domain.
Warranties that actually help when you need them
Warranties have two parts: the manufacturer’s promise and the installer’s labor coverage. The contract should list both, with durations in years. On many brands, you will see 10 year parts to the original homeowner if registered within 60 to 90 days. Heat exchanger or compressor warranties may extend longer, sometimes lifetime on residential furnaces for the first owner. Labor warranties vary widely, from 1 year to 5 years on premium packages. If the labor warranty is only one year, consider purchasing an extended plan if offered by the installer with clear terms and a real service network.
Pay attention to conditions. Warranties often require annual maintenance. The contract should say whether a first year tune is included, whether filter changes are your responsibility, and how warranty calls are handled after hours. If you live in a cold climate, ask what happens if the unit fails on a weekend. Some contractors stock common parts and provide emergency service with a surcharge, while others refer you to the manufacturer’s hotline. You want names and numbers on paper before the first frost.
Schedule, access, and what your house will look like during the job
A realistic schedule includes lead time for equipment, permit approval, and installation duration. For a straightforward furnace swap, expect one long day or two shorter days. For a heat pump with new line set, allow two days. Duct modifications or complex hydronics can stretch to three or more. The contract should list the planned start date or a window and who will coordinate access.
Clear your path to the mechanical space. The contract should outline protection measures: drop cloths, floor runners, shoe covers, and plastic dust barriers. If the crew plans to cut in the attic, they should plan for vacuuming and debris removal. Note where outdoor units will sit, pad type, and whether the ground needs leveling. For roof units, crane coordination is its own paragraph in a good contract, including street permits and safety spotters.
Payment schedule that matches progress
Tying payments to milestones makes the job smoother. A common pattern is a deposit at signing to cover equipment procurement, a progress payment when equipment is delivered to site or rough-in is complete, and a final payment after startup and inspection. The contract should specify amounts or percentages and acceptable payment methods. Avoid paying in full before inspection or commissioning. Retainage is unusual in residential work, but a modest balance due at confirmed operation gives both sides a reason to finish punch list items quickly.
You should also see what triggers change order payment. Some contractors require payment for change orders upon approval, others roll them into the final invoice. Either is fine if stated.
Commissioning and documentation, not just flipping the switch
Commissioning is a formal word for verifying the system operates as designed. A real commissioning plan includes measuring temperature rise on a furnace and matching it to the equipment’s nameplate, setting blower speed, confirming gas pressure under load, and checking for flue draft. For heat pumps, it includes confirming proper charge by weight or by subcool/superheat per the manufacturer’s chart, verifying defrost operation, and confirming auxiliary heat staging. Electrical readings like amp draw and voltage under load should be recorded.
Your contract should state that the installer will perform startup and provide a copy of commissioning data. It should also promise delivery of manuals, warranty registrations, and AHRI certificate if applicable. If you are applying for rebates, the contract should note who submits what and by when. I like to see the technician walk the owner through filter sizes, breaker locations, thermostat programming, and any noises that are normal versus call worthy.
Safety and liability items that protect both parties
Licenses and insurance belong in the contract. You should see license numbers and a statement of liability insurance and workers’ compensation. If subcontractors are used, the contract should state that they carry equivalent coverage. There should be a clause about property damage responsibility and limits, and a note about existing conditions that could be damaged despite reasonable care. Old brittle duct boots and plaster walls come to mind. The better contracts include an agreement to notify you of discovered hazards such as mold or asbestos and to pause work until a plan is agreed.
Hazardous materials deserve clear language. Most HVAC contractors are not abatement firms. If asbestos, lead paint, or mold is encountered, the contract should explain that work will stop and an abatement contractor will be needed. This is not a stall tactic, it is a legal and health requirement. The contract should not obligate the HVAC crew to proceed in unsafe conditions.
Energy efficiency, rebates, and long term costs
Efficient equipment reduces bills, but installation quality determines whether you realize those savings. Your contract should tie the quoted efficiency to the matched equipment and to the duct or hydronic design discussed earlier. If you are relying on a specific HSPF2 or AFUE threshold for rebates, write down the target and the AHRI number. The contract should include any utility or manufacturer rebates and who receives them. Some contractors take assignment of rebate payment to reduce your upfront cost, others leave the rebate to you. Timelines and documentation requirements should be listed.
Long term operating costs include filters, maintenance, and electricity or gas rates. For heat pumps, auxiliary heat settings can swing bills dramatically. Ask to have lockout temperatures recorded in the contract. For gas furnaces, ensure combustion is tuned for steady, efficient operation. Small adjustments to gas pressure and airflow make noticeable differences in comfort and noise.
Red flags that tell you to pause
Most problems I’ve seen later were foreshadowed on paper. Watch for missing model numbers, no mention of permits, vague “like for like” language when the system type is changing, and a price that is far below comparable bids without an explanation. If the contract disclaims responsibility for code compliance or refuses to itemize basic components like pads, disconnects, and condensate safety switches, you may face shortcuts later.
Another red flag is a contract that promises a firm start date during peak season without acknowledging permit timing. Good contractors give honest windows and plan around real constraints. They will also name the brand and stock status. If a specific get more info https://mastertechserviceny.com/ heat pump size is backordered, it is better to know that and decide whether to wait or choose a different model than to gamble on promises.
Practical negotiation points that pay off
You do not need to rewrite your contractor’s template. A few targeted edits can make a big difference. Ask to replace “as needed” with specific quantities or unit prices. Ask to add commissioning data delivery as a deliverable. Request that change orders be written and signed except for immediate safety repairs, which must be documented after the fact. Confirm the labor warranty length and whether it includes diagnostic time. If duct sealing is not included, ask to add it with a measurable target, even if it is as simple as sealing all accessible joints with mastic.
If you are nervous about payment risk, suggest a small holdback until inspection sign off, typically 5 to 10 percent. Many contractors will accommodate a modest final balance if you are otherwise easy to schedule and communicate well. Put everything you agree verbally into the contract text. The people making promises at the kitchen table are often not the same people making decisions when the crew is on site.
When you are replacing more than heat
Many replacements are part of a combined heating and cooling package. If your contract covers both, make sure the scope addresses heating system installation needs as well as cooling. Heat pump sizing is a balancing act between summer and winter. The contract should specify sizing rationale and how thermostat programming will manage the shoulder seasons. If you are adding ventilation or dehumidification, confirm how those systems interact with your heating equipment and whether control conflicts have been considered.
Hydronic systems deserve their own attention. If you are moving from a cast iron boiler to a modulating condensing unit, the contract should state return water temperature expectations and whether your distribution can support condensing operation. Without low return temperatures, a condensing boiler will run like a non condensing one and miss efficiency targets. The contractor should propose outdoor reset control and set a curve appropriate for your emitters.
After the dust settles: what to keep and what to watch
When the job is complete, keep a copy of the signed contract, permits, inspection results, equipment manuals, and the commissioning sheet. Label the panel breakers and take photos of the equipment labels. Write down filter sizes and change intervals. Keep the contractor’s service number handy. For the first season, pay attention to how the system cycles. Short bursts of heat with long off periods can indicate oversizing or airflow problems. Unusual noises should be reported early, not tolerated.
The contract’s final value shows up here. If it anticipated maintenance and provided clear warranty terms, you will not wonder whether calling for a checkup voids anything. If it committed to a commissioning checklist, you can ask the technician to review it with you. If it tied final payment to startup, you will not feel pressure to pay before the system proves itself.
A quick pre signing checklist Does the contract list exact model numbers, capacities, and efficiency ratings for every major component, including matched coils or air handlers? Are permits, inspections, and code compliance responsibilities clearly assigned, with fees noted? Are exclusions and allowances explicit, especially for electrical work, duct modifications, line sets, and disposal? Is there a defined change order process with unit pricing for common adders and a plan for schedule impacts? Do warranties list both manufacturer parts and installer labor coverage, with maintenance requirements and service process explained?
A heating replacement is a big swing at the comfort and energy use of your home. The contract is where expectations become obligations. Read it closely, ask for clear language where it is vague, and do not be shy about adding a sentence or two to capture what you care about. A solid contract does not make the installer more skilled, but it does align incentives, reveal planning, and give you leverage to get the heating system installation you paid for. That leverage is worth far more than the extra fifteen minutes at your dining table before you sign.
Mastertech Heating & Cooling Corp
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Address: 139-27 Queens Blvd, Jamaica, NY 11435
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Phone: (516) 203-7489
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Website: https://mastertechserviceny.com/ https://mastertechserviceny.com/
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