The consumer must conduct an inspection prior to the sale of an air-conditioning service contract. A cooling or heating contractor violates NRS 598.940 if the contractor conducts a sale of an air-conditioning service contract without first inspecting the unit for which the contract is offered for sale. If upon such inspection, repairs are recommended to be made, the contractor may add an additional amount to the contract price. A good rule of thumb is to add an additional 15 percent to the cost of any repairs. This will give the consumer a good idea of how much money he or she needs to budget for repairs. Be advised, no matter what you do on your end, not all units can be repaired. Sometimes it is just more efficient and cost effective to replace the unit.
You will need to inspect the unit prior to offering it for sale. The inspection must take place within 60 days before the sale, or no later than 10 working days after you have been made aware of the sale. You are required to give a copy of the inspection report, as well as an invoice covering the complete job, which includes parts and labor, to the consumer. You must also provide your company’s name and contact information. The report must contain:
the date of the inspection;
a list of all major components inspected;
the condition of each listed component;
any additional work or repairs recommended but not performed, if applicable;
an estimated cost for any additional work or repairs;
the unit’s current age, manufacturer and model number;
the consumer’s name, address and telephone number;
your signature with your license number.
The following additional information must be included if the cooling system is low on refrigerant:
a list of all major components inspected;
an estimate of what the repair and parts will cost;
a statement that refrigerant is low and an estimate of how much it will cost to add refrigerant;
the condition of each listed component;
a list of all other significant concerns (if any) noted during the inspection.
An additional fee may be charged if you complete the following: install one or more new major components, such as the condenser, evaporator coil or compressor;
remove one or more existing parts or components in order to replace an old part with a new one;
perform any work on the inside of the unit.
You must disclose whether you are acting as a dealer or contractor in both your oral presentation and your contract. If you are acting as a dealer, the price of your unit will be substantially higher than if you were to act as a contractor. The consumer’s signature on the contract must indicate whether he or she or another person performed the inspection.
You may charge for travel time and mileage only when your vehicle is being operated. You cannot charge for travel time if you are using another company’s vehicle.You should also be aware that any type of flimflammery can and will be punished by the state. For instance, you may not charge a fee for inspecting a unit that does not exist; or fail to give the consumer an invoice covering the complete job, which includes parts and labor; or fail to give the consumer a copy of the completed inspection report; or fail to disclose that you are acting as a dealer or contractor.