**SUBCONTRACTOR**
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HVAC SCOPE OF WORK

Objective of this Scope of Work

► To ensure that the Heating, Ventilation and Air Conditioning systems are installed in a manner consistent with all applicable building codes, manufacturer's instructions and warranty requirements, and acceptable construction practices.

Terms used in this document

►SITE SUPERINTENDENT: shall refer to any Company representative with authority to enforce this Scope of Work.
►SUBCONTRACTOR: shall refer to the Subcontractor's organization, its employees, or any representative of the Subcontractor assigned the authority to perform per this Scope of Work.

Acceptable Performance
HVAC is divided into two phases: Rough and Final. While each project does not necessarily include both phases, they are included in this Scope of Work. Payment will be made per each of the phases.
HVAC: General

► The equipment and system shall be installed in accordance with all approved building, plumbing, electrical, and health codes, and function as specified. Installations should pass the initial code inspection at each phase.
► The Subcontractor must be licensed in the code enforcement jurisdiction in which the project is located prior to beginning work.
► All work is to be done by trained, experienced individuals. Workmanship shall be so as to require a minimum of repairs and patching after installation.
► All systems must be energy efficient per current code.
► Company will furnish the Subcontractor a full set of plans in a timely manner to allow the Subcontractor time to complete the necessary heat-load calculations and HVAC layouts. It is the responsibility of the Subcontractor to determine the tonnage and number of units required for each house.
► Systems shall be installed using new materials of the grade and quality required to meet or exceed local or state and ASHRAE standards. The type and manufacturer of the heating and cooling system shall be approved by Company and cannot be changed without the written approval of Company's purchasing agent. Approval must be received in writing.
► Should the requirements for HVAC systems change because of any change in the applicable codes, the Subcontractor must notify Company immediately and all plans must be re-bid.
► No roof or floor truss may be cut, notched, moved, or otherwise damaged in any manner. If any truss interferes with the installation of the HVAC system, the Site Superintendent should be notified so that the truss manufacturer may solve the problem. Should any truss be damaged accidentally the Site Superintendent must be notified immediately. The truss manufacturer’s engineer must approve any repairs before they are made.
► The heating system shall be a complete and functioning system tested and ready for operation.
► The heating and cooling systems should operate correctly for the first two (2) years of Warranty coverage with the exception of those items caused by owner negligence.
► The heating system should be capable of producing an inside temperature of 74 degrees Fahrenheit (F), as measured in the center of each room at a height of 5 feet above the floor, under local outdoor winter design conditions as specified in the ASHRAE handbook. Federal, state or local energy codes shall supersede this standard where such codes have been adopted locally.
► The cooling system shall be a complete and functioning system tested and ready for operation.
► The cooling system shall be capable of maintaining a temperature of 70 degrees F, as measured in the center of each room at a height of 5 feet above the floor, under local outdoor summer design conditions as specified in the ASHRAE handbook. In the case of outside temperatures exceeding 95 degrees F, a differential of 15 degrees F from the outside temperature shall be maintained. Federal, state or local energy codes shall supersede this standard where such codes have been adopted locally.
► Refrigerant lines should not develop leaks and there should be no condensation on refrigerant lines during the first year of the Warranty period.
► The Subcontractor will furnish to the homeowner, via a tag on the HVAC unit, a regular office hour phone number and an emergency phone number. The Subcontractor is required to furnish emergency service.

HVAC Installation

► A new set of plans is required for each house. Plans are subject to changes and modifications. It is the responsibility of the Subcontractor to have the new plans before beginning work. Plans should be picked up from the Site Superintendent.
► The Subcontractor will correct any errors that occur from using an incorrect set of plans at no cost to Company.
► The Subcontractor is responsible for obtaining all necessary trade permits.
► Subcontractor shall be responsible for installing ventilation for hot water tank.
► The Framing Subcontractor is responsible for framing and completing the attic access and platform area for all HVAC units to be installed in attic. If the attic area is not complete or completed incorrectly, the Site Superintendent should be notified immediately. Do not install unit if framing is not complete
► A metal condensation drain pan shall be installed by the Subcontractor when an attic unit is placed.
► All heating and cooling equipment shall be located with sufficient clearances from walls or other equipment to permit cleaning of heating and cooling units, replacement of filters, blowers, motors, controls, vent connections, lubrication of moving parts, and adjustments. Should any area be inadequate to allow necessary clearances, the Site Superintendent should be notified immediately.
► The Subcontractor shall furnish a pre-built pad for the AC unit. It is to be installed level and square.
► All ducts should be properly sealed at the heat exchanger per energy code and should not become loose or detached.
► All ducts shall be installed per the manufacturer’s installation instructions. No duct shall be crimped, bent, or otherwise installed in such a manner as to restrict airflow. Any duct work leaving the heating or cooling unit shall not obstruct the unit in such a manner that the unit cannot be cleaned, filters changed, maintenance performed, etc.
► All floor ducts are to be temporarily covered to prevent debris from falling into the ductwork. The appropriate covering is expanded metal stucco lath cut to size for the vent cover, provided and installed by the Subcontractor.
► All floor duct openings shall be level, square, and flush with the floor. When grills are installed they should not tilt more than 1/16 inch when stepped on.
► The vent and grill in the kick plate under the cabinets shall be installed high enough to allow shoe molding to be installed below the kick plate.
► All ceiling grills shall be square and set flush with the ceiling. They shall have the proper insulation materials installed and shall fit snugly.
► Subcontractor is responsible for cutting neat, clean holes and for completely sealing the holes. Any excess sealing material is to be removed.
► All piping joints and connections shall be suitable for the pressure-temperature conditions and compatible with the piping material.
► The stiffening of ductwork and the gauge of the metal used shall be such that duct walls do not flex with pressure changes.
► Programmable thermostats shall be installed at location(s) discussed with Supervisor. The instruction booklet is to be placed in kitchen cabinet drawer to the left of the range.
► Condensation pumps shall be plugged in and operational.
► Heating units shall have filters installed.
► The Subcontractor is responsible for cleaning up all residual materials before the job will be accepted as complete.
► At completion of job, house shall be broom-swept and all debris removed to the dumpster or a designated trash area.
► The Subcontractor is responsible for passing all required inspections.
► Any re-inspection fees assessed Company for items relating to this Scope of Work will be charged to and reimbursed by the Subcontractor.
► Any items found during the final inspection that need correction shall be corrected before payment will be made.

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🏅 Create a Business Worth Owning

📶 Integrated step-by-step program using all tools and systems

💡 Two coaching sessions per month

📊 Monthly scorecard to measure the journey

🛠️ Tools: All tools (Chart of Accounts, Cost Codes, BBOS Estimator, Builder Business Model Canvas, SubManager, ClientManager, Policy Handbook, Management Scorecard).

🤝 What we do together:

  • A 180+-day engagement covering financials, estimating, subcontractors, clients, and workforce.
  • Coaching sessions every two weeks to review your real numbers and coach policy implementation.
  • A monthly “Business Health Scorecard” that shows where you are strong and where to strengthen.
  • Focus on building a business system that allows you to:
    • move out of day-to-day management;
    • develop a valuable legacy enterprise; and
    • create a business with significant market value.

💲 Investment: $3,500-$5,000.

🪜 Progression logic:

  • This is the capstone — combining all five prior steps into one system that builds a business worth owning.

🎯Outcome: "Now I control my business, not the other way around."

👷 Manage Your Workforce

👷‍♀️ Put the right people in the right position

📄 Create an Organization Chart and Position Descriptions

📄 Integrate employment policies

🛠️ Tools: OrgChart, Position Descriptions, Company Policy Template

🤝 What we do together:

  • Create a Company organization chart.
  • Create Job Descriptions.
  • Implement employee policy handbook
  • Identify inefficiencies in labor margins.
  • Discover hidden labor costs.

💲 Investment: $1,250-$1,500.

🪜 Progression logic:

  • Labor is usually the last controllable variable — now you are tackling optimization and efficiency.

🎯Outcome: "Now I am in control of the work that must be completed, and my employees understand their positions and accountabilities."

🗣️ Control the Client Relationship

📄 Client log, Change Order system

📄 Notice of Completion, Draw Requests

📄 Communication templates for disputes

🛠️ Tools: ClientManager, Client Contact Log, Initial Specifications, NAHB Residential Construction Guide

🤝 What we do together:

  • Implement a structured client management system.
  • Introduce the Client Contact Log.
  • Provide templates for change order and scope adjustments.
  • Train on reducing disputes and managing client expectations.

💲 Investment: $750-$1,250

🪜 Progression logic:

  • With the business financially stable and risk-protected, control of clients and their expectations ensures smoother operations and fewer profit leaks.

🎯Outcome: "Now I can manage clients and their expectations without projects spinning out of control."

🧯Identify and Manage Risks

🏠 Project Risks:

  • Site Risks – site injuries with no primary insurance coverage.
  • Reputational Risks – You don’t deliver what you promised because your subcontractors were not on the same page.
  • Capacity Risks – You can’t deliver what you promised because you don’t have the organizational structure to support your sales.

🔍 Management Risks:

  • Company Structural Risks – You don’t have the right people in the right positions.
  • Promotional Risks – Your market doesn’t know or care about your products.
  • Competitive Risks – You haven’t differentiated your company, so lowest price is the only way you can compete. 
  • Market Demand Risks – a bad market cycle will cripple or destroy your business.

🛠️ Tools: SubManager, Organizing for Success, Builder Business Model Canvas, Budgeting Forecasts

🤝 What we do together:

  • Implement Terms and Conditions, Scopes of Work, and Inspection Reports for all Subcontractors.
  • Review how you track subcontractor insurance and compliance.
  • Analyze your organizational structure to optimize production capacity.
  • Review your business model.
  • Create “Expected Case”, “Best Case”, and Worst Case” budgeting scenarios.

💲 Investment: $1,000-$1,500

🪜 Progression logic:

  • After financial clarity and profitable estimating, risk management provides the next layer of company stability.

🎯Outcome: "Now I can reduce or transfer risk exposure; identify and appeal to my primary market; and plan for any type of economic environment."

🧮Price with Confidence

🔍 Audit your estimating process

🔎 Review all active projects monthly for budget-to-actual performance

🔍 Debrief every completed project for profitability and work flow

📶 Install a margin-tracking dashboard

🛠️ Tools: BBOS Estimator, Overhead Calculator, Completed Project Profitability Report

🤝 What we do together:

  • Audit your current estimating process.
  • Benchmark your margins against industry and market standards.
  • Optimize estimating margins for maximum profitability.
  • Track true budget-to-actual expenditures.

💲 Investment: $750-$1,250

🪜 Progression logic:

  • Once finances are stable, you can sharpen your pricing to stop leaving money on the table.
  • You’ll know the margin to use to make sure overhead is allocated profitably. 

🎯Outcome: "Now I can bid jobs knowing I'll profit, not just hoping for profit."

💰90-Day Financial Reset

🗄️ Rebuild Chart of Accounts on NAHB Model

🗃️ Rebuild Cost Codes on CSI model

🛠️ Tools: Accounting platform, NAHB Chart of Accounts, CSI Cost Codes, Management Scorecard

🤝 What we do together:

  • Access to your accounting platform is required.
  • Rebuild your Chart of Accounts for project-level profitability.
  • Create and align Cost Codes so estimating, job costing, and reporting all “speak the same language.”
  • One-on-one coaching call every two weeks during the program to interpret your numbers.

💲 Investment: $1,500-$3,000

🪜 Why start here?

  • Without financial clarity, nothing else matters.
  • The reason you are in business is to make a profit. 
  • Do you KNOW if you are doing that?

🎯Outcome: "Now I know if my business is profitable and my business model is sound."

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