Commercial HVAC Service Contracts — Rivic Heating & Air Conditioning

Commercial service contracts extend beyond the routine preventive maintenance scope covered on the commercial HVAC maintenance page to include the broader class of commercial service instruments: master service agreements (MSAs) governing all Rivic work across a property or portfolio, service level agreements (SLAs) with defined response and resolution commitments, refrigeration-specific contracts for food service and grocery operations, tenant coordination agreements for multi-tenant buildings, corporate account structures for regional and national businesses with Merrimack Valley locations, warranty administration contracts, and tenant improvement (TI) build-out coordination for buildout of new commercial spaces or major renovations.

Where the PM contract answers “when is Rivic servicing my HVAC,” the broader service contract answers “how does Rivic work with my business over time.” Restaurants, medical practices, retail operations, professional services, and multi-property landlords each have specific service contract patterns that Rivic supports. This page describes the contract types available, the commercial terms typical to each, and the situations in which each type is appropriate.

Service Contract Types Rivic Offers

Preventive Maintenance Contracts (Base Layer)

The Quarterly, Bi-Monthly, and Monthly PM contract tiers detailed on the commercial HVAC maintenance page. Base-layer service commitment for any commercial customer beyond pure break-fix arrangement. Every other contract type described below builds on the PM contract foundation.

Master Service Agreement (MSA)

Umbrella contract governing all Rivic work at a property or portfolio: preventive maintenance scope, repair work, project installations, emergency dispatch, warranty administration, and any specialty work (refrigeration, gas piping, controls). Advantages for the customer: single accounts payable relationship, pre-negotiated pricing and terms across all work types, streamlined authorization for common repair scope up to defined dollar thresholds, consolidated documentation and reporting, and volume-based pricing discounts across the total annual spend.

Typical MSA terms:

• Pre-approved repair authorization: repairs under a defined threshold (typical $1,500 to $3,500 depending on customer scope) proceed without individual approval; only repairs above threshold require case-by-case authorization.
• Standard hourly labor rates: locked pricing for the contract term (typical 1-year with rate-lock option for 2-3 years).
• Repair discount: 20 to 30% below standard commercial repair rates based on annual spend commitment.
• Volume discount tiers: incremental discounts triggered at $10K, $25K, $50K annual spend thresholds.
• Emergency dispatch commitment: 2-hour response during business hours, 3-hour response overnight and weekends, waived after-hours surcharge.
• Consolidated billing: monthly invoicing with itemized detail per property and work type; single monthly payment.
• Quarterly business review: dedicated Kathleen Brennan review of prior quarter’s work, upcoming needs, and portfolio-level HVAC condition assessment.

Service Level Agreement (SLA)

Formal commitment on response and resolution times with defined performance metrics. Appropriate for business-critical customers where documented service levels are required (typical in medical, tenant-occupied buildings with landlord obligations, or corporate customers with regulatory documentation requirements). SLA structures typically include:

• Response time commitments: hours-to-arrival by service category (emergency, urgent, routine) with defined penalties or credits for missed commitments.
• Resolution time targets: hours-to-restore for defined failure categories, subject to parts availability and scope complexity.
• Uptime commitment: annual percentage uptime guarantee on core HVAC equipment with proactive maintenance credit if commitment not met.
• Documented reporting: monthly SLA performance report with response/resolution metrics against target.
• Escalation procedures: defined escalation contacts and response for missed commitments or unresolved issues.

SLA structures require the underlying PM contract discipline to be defensible; SLAs on break-fix arrangements do not work because Rivic cannot commit to response times without underlying equipment familiarity from routine maintenance.

Refrigeration Service Contract (Restaurants, Grocery, Food Service)

Restaurants, small grocery operations, breweries, and specialty food retailers require refrigeration service integrated with HVAC service — walk-in coolers, walk-in freezers, refrigerated display cases, kegerators, ice machines, refrigerated prep tables. Rivic offers refrigeration-inclusive contracts that layer refrigeration equipment onto the base HVAC PM contract:

• Walk-in cooler quarterly service: $340 to $580 per year per walk-in on a base HVAC contract.
• Walk-in freezer quarterly service: $440 to $780 per year per freezer (higher due to defrost cycle complexity).
• Refrigerated display case service: $180 to $340 per case per year.
• Ice machine service: $180 to $340 per machine per year including quarterly scale removal and sanitizer verification.
• Kegerator service (bar/brewery applications): $180 to $340 per unit per year.
• Emergency refrigeration dispatch: same response commitments as HVAC (2-hour business hours, 3-hour overnight for contract customers) — critical for food safety where extended refrigeration downtime creates product loss and health code implications.
• Product-loss coordination: Rivic can provide documented refrigeration failure timeline and temperature logs for insurance claims in the event of catastrophic failure with product loss.

Tenant Coordination Agreement

Multi-tenant commercial buildings (professional office, medical office, retail, mixed-use) often have complex HVAC arrangements where landlord holds the base building HVAC contract and tenants may need supplemental service for tenant-specific equipment. Rivic supports this configuration with tenant coordination agreements that align landlord and tenant expectations:

• Base building PM contract held by landlord covers common building HVAC (main air handlers, boilers, chillers if applicable, common area comfort).
• Tenant supplemental contracts held by individual tenants cover tenant-specific equipment (kitchen equipment for restaurant tenants, medical-specific ventilation for practice tenants, IT room supplemental cooling for tech tenants, retail supplemental HVAC).
• Tenant service pass-through: landlord authorizes Rivic to respond directly to tenant service requests within pre-approved scope and dollar thresholds without individual authorization; landlord billed separately per lease terms.
• Coordinated service scheduling: annual coordination of PM visits across tenants to minimize business disruption; single-visit coverage of building common and tenant equipment where practical.
• Documented tenant communication: tenant work orders, findings, and completion documented and shared with both tenant and landlord for lease compliance purposes.

Corporate Account Structure

Regional and national businesses with Merrimack Valley locations sometimes require Rivic to operate as a service provider under corporate account structures with centralized billing, dispatched service authorization, standardized documentation, and coordinated reporting. Rivic supports corporate account structures for:

• Regional restaurant chains with 3+ Merrimack Valley locations.
• Retail chains with multiple regional locations under coordinated facilities management.
• Medical practice groups with multiple offices requiring coordinated service.
• Property management companies overseeing multi-property portfolios in the Merrimack Valley.
• National facilities management firms (CBRE, JLL, Cushman & Wakefield) coordinating regional service delivery.

Corporate account structures typically include: standardized work order and invoicing formats, dispatch coordination with corporate facilities management, W-9 and insurance certificate documentation on file, workers comp and general liability insurance coverage documented to corporate risk management standards, dispatch authorization matrices, and coordinated escalation procedures.

Warranty Administration Contract

Building owners with premium HVAC equipment installed under manufacturer warranties often benefit from Rivic administering the warranty relationship: filing warranty claims with manufacturers, coordinating warranty parts orders, tracking warranty expiration dates, and executing warranty labor when covered. This is particularly valuable for buildings with multiple manufacturers or complex equipment where warranty terms differ significantly. Warranty administration typically bundled with the PM contract or MSA at $180 to $580 per system per year add-on.

Tenant Improvement (TI) Build-Out Coordination

New tenant fit-outs and major tenant renovations require coordinated HVAC scope: assessment of existing HVAC serving the tenant space, capacity verification against new tenant use (restaurant tenant replacing office space requires significant HVAC increase; medical practice replacing retail requires ventilation upgrade), permit coordination with tenant contractor, installation coordination with tenant construction schedule, and commissioning coordination with tenant move-in schedule.

Rivic offers TI build-out coordination as a project-based service contract, typically priced at $2,400 to $18,000 depending on scope complexity, coordinated with the tenant’s build-out timeline. This is particularly common for downtown Methuen 225 Broadway complex tenant changes, downtown Lawrence Essex Street corridor tenant fit-outs, and Andover Main Street professional building tenant improvements.

Contract Term Structures

Annual Contracts (Standard)

• 1-year term with automatic renewal 30 days before anniversary.
• 60-day cancellation notice with prorated refund of unused portion.
• Rate adjustment at renewal typically 3% to 6% annually reflecting parts and labor cost inflation.

Multi-Year Contracts (Rate-Lock)

• 2-year or 3-year term with rate-lock over the full term.
• Discount of 3% to 6% off annual pricing in exchange for multi-year commitment.
• Appropriate for stable operations with predictable HVAC service needs.

Project-Based Contracts (One-Time Scope)

• Fixed-scope contracts for specific projects (equipment replacement, TI build-out, single-property portfolio assessment).
• Not renewable; concludes on project completion.
• Can transition to ongoing PM contract upon project completion.

Master Contract with Purchase Order Work Orders

• Master agreement establishing terms; individual work performed under purchase orders referenced against the master.
• Common structure for corporate and property management customers who want the framework in place without committing to specific scope in advance.
• Master agreement typically 3-year term; individual work orders per specific project.

Contract Value Investment Ranges (Beyond Base PM)

• MSA setup and administration overhead (in addition to underlying PM contract): $580 to $2,400 per year for portfolio administration overhead.
• SLA formal commitment overhead (in addition to underlying PM contract): $980 to $3,400 per year for SLA administration, monthly reporting, and enhanced dispatch commitment.
• Refrigeration equipment layer on HVAC contract: $340 to $780 per major refrigeration unit per year.
• Warranty administration: $180 to $580 per system per year.
• Corporate account structure administration overhead: $980 to $3,400 per year for corporate documentation, coordinated reporting, and dispatch coordination.
• Tenant coordination agreement administration: $580 to $1,780 per year per multi-tenant property.
• TI build-out coordination (project-based): $2,400 to $18,000 depending on scope.
• Total commercial customer relationship value ranges: small commercial single-property $2,400 to $6,000 per year all-in, mid-commercial multi-system property $6,000 to $18,000 per year all-in, multi-property portfolio $18,000 to $80,000+ per year all-in.

Frequently Asked Questions

Why would I want an MSA instead of just calling Rivic for individual repairs?

Predictable pricing and streamlined authorization are the two primary MSA benefits. Under break-fix arrangement, every repair generates a new estimate, a new authorization cycle, and a new invoice. On buildings with regular ongoing HVAC needs, this overhead becomes significant: procurement staff time approving repair scope, accounts payable time processing invoices, facilities coordination time authorizing work orders. MSA structure delivers pre-negotiated pricing (typically 20-30% below standard commercial rates), pre-approved authorization for repairs under threshold (typically $1,500 to $3,500), consolidated monthly billing (single invoice with itemized detail vs. dozens of individual invoices), and dedicated relationship management (quarterly business review with Kathleen Brennan). Total customer time savings on a typical mid-commercial multi-system property: 40 to 80 hours per year of administrative overhead eliminated.

What’s the difference between a PM contract and an SLA?

PM contracts guarantee scheduled preventive maintenance visits at defined frequency. SLAs guarantee response and resolution times when equipment fails. Different commitments serving different customer needs. Most commercial customers only need PM contracts. SLAs are appropriate when documented service levels are required for regulatory, contractual, or executive-accountability purposes: medical practices with facilities compliance requirements, tenant-occupied buildings with landlord obligations under lease terms, corporate customers with facilities management performance metrics, or business-critical operations where equipment downtime materially impacts revenue and executive-level accountability requires documented commitments. SLA overhead typically adds $980 to $3,400 to the underlying PM contract cost.

Can Rivic handle warranty administration on equipment installed by other contractors?

Yes. Warranty administration is a distinct service from installation; Rivic administers warranty relationships with manufacturers regardless of who installed the equipment. Common scenario: building owner has HVAC installed by contractor A (who may have gone out of business, been sold, or lost the customer relationship), and hires Rivic to take over ongoing service including warranty administration. Rivic verifies warranty registration status at manufacturer portals, files warranty claims for covered failures, coordinates warranty parts orders, and executes warranty labor. On complex commercial equipment with multi-year parts warranties (10-year compressor warranties, 20-year heat exchanger warranties), the warranty administration value can be substantial — a covered $8,000 compressor replacement under warranty administration costs the building owner labor only rather than full replacement scope.

How does Rivic work with property management companies?

Standard commercial approach. Rivic works with several established Merrimack Valley property management firms and can integrate with national firms (CBRE, JLL, Cushman & Wakefield) when local presence is required. Standard property management integration includes: standardized W-9 and insurance certificate documentation, workers comp and general liability coverage at industry-standard limits, dispatch coordination with property management coordinators, work order documentation in property management preferred format, monthly reporting per property in property management preferred format, and coordinated escalation procedures per property management protocols. Kathleen Brennan handles property management coordination and can adapt to specific property management firm workflow requirements.

What happens if a service contract commitment is not met?

Depends on contract type and specific commitment. PM contracts: missed scheduled visits are rescheduled promptly, typically within 5 business days; no financial remedy structure. MSA: response time commitments are commercially reasonable rather than penalty-backed; Rivic communicates proactively when scheduling constraints affect commitments and works with the customer to adjust. SLA: formal remedies defined per contract, typically service credit against the following month’s contract fee for missed response or resolution commitments, escalated to executive-level review for repeated misses. Rivic operates a small business rather than a national enterprise contractor, and prefers commercial relationships built on honest communication and consistent delivery rather than penalty-backed enforcement mechanisms; SLA structure is available where required but is not our preferred commercial style.

Contact Rivic Heating and Air Conditioning — Commercial Service Contracts

Master service agreement discussion, service level agreement consultation, refrigeration contract enrollment, tenant coordination setup, corporate account establishment, warranty administration, and tenant improvement coordination route through the 225 Broadway office in central Methuen. Kathleen Brennan handles all commercial service contract administration and coordination.

• Emergency Line (24/7): (351) 240-2627
• Address: 225 Broadway #306, Methuen, MA 01844
• Email: info@rivicheatingairconditioning.xyz
• MA Refrigeration Technician License: #RT-24518
• MA Journeyman Gas Fitter: #JGF-30521
• MA Home Improvement Contractor: #HIC-191847
• EPA Section 608 Universal: #608U-2007-192874

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