Property Manager Guide · RFP

How to write an HVAC RFP for your condo board: 12 must-have clauses.

By Pankaj Oberoi·Owner & HVAC Engineer·Jun 26, 2026·11 min read

Most condo HVAC RFPs get three quotes back with a $30k+ spread and no honest way to compare them. This template gives you 12 non-negotiable clauses that force every bidder to disclose the same information — and a scoring rubric that makes the comparison objective.

Why most HVAC RFPs fail the board

The most expensive mistake a property manager makes during RFP season isn't choosing the wrong contractor — it's writing an RFP that lets contractors compete on different things. Contractor A quotes a base rate that excludes emergency dispatch. Contractor B includes emergency dispatch but excludes water treatment. Contractor C includes both but excludes controls calibration. On paper, A looks cheapest. In practice, A costs the most.

Every one of the following 12 clauses forces every bidder to disclose the same items in the same format. Copy them directly into your next RFP.

01

Flat-rate scope of work

Require each contractor to state, in dollars per unit per month, the all-inclusive flat-rate covering preventive maintenance, emergency dispatch, water treatment, controls calibration, filter media, and TSSA inspection coordination.

Sample RFP ClauseBidder shall state a single monthly flat rate (Base Fee) that includes: preventive maintenance visits (frequency stated), 24/7 emergency dispatch, all water treatment chemicals, controls calibration (annual), all filter media, and TSSA inspection attendance. Any item not included in Base Fee shall be listed separately as an Exclusion.
02

Emergency response SLA

Force a written commitment to on-site response time — separate from labour rate. A contract without a response-time SLA is a contract that cannot be enforced.

Sample RFP ClauseBidder shall commit to a maximum on-site response time of ___ hours for critical faults (heat-out, no cooling, water leak) 24/7/365. Failure to meet SLA more than 2 occurrences per year shall be grounds for termination for cause.
03

After-hours labour rate disclosure

Even for included emergency dispatch, force disclosure of any surcharge structure. This exposes the "included but surcharged" trap.

Sample RFP ClauseBidder shall disclose all labour rates: (a) standard business hours; (b) after-hours (6 PM–8 AM weekdays); (c) weekends; (d) statutory holidays. State whether these rates apply to Contract Client work under Base Fee.
04

Explicit exclusions list

Every contract has exclusions. Force them to be listed on one page.

Sample RFP ClauseBidder shall provide a complete list of services, parts, and consumables NOT included in Base Fee. Any item not on the Exclusions list is deemed included.
05

Refrigerant and parts markup

Contractors typically mark up parts 25–45%. Some negotiate this down to 15–20% for contract clients. Force the number to be quoted.

Sample RFP ClauseBidder shall disclose (a) parts markup percentage for Contract Client purchases; (b) refrigerant top-up allowance included in Base Fee (state pounds/year of each refrigerant type); (c) hourly rate for parts sourcing/expediting.
06

Change order process

Every additional work item outside Base Fee should require a written pre-approval process with unit pricing schedule.

Sample RFP ClauseAll work outside Base Fee shall require written change order pre-approved by the Property Manager. Bidder shall provide a Unit Pricing Schedule for common change-order work items. No verbal approvals shall be honoured.
07

5-year capital plan delivery

Contract should include annual condition assessment of major equipment, with a written 5-year capital replacement plan delivered to the board every January.

Sample RFP ClauseBidder shall deliver, by January 31 each year, a written Capital Replacement Plan projecting all major equipment (boilers, chillers, cooling towers, MAUs, controls) end-of-life within 5 years, with estimated replacement costs in current dollars.
08

Quarterly compliance reporting

Instead of a stack of invoice PDFs, the contract should require a single consolidated compliance report.

Sample RFP ClauseBidder shall deliver quarterly Compliance Summary reports consolidating all TSSA inspections, ASHRAE compliance items, water treatment chemistry results, and deferred maintenance items in a single document suitable for AGM presentation.
09

Key personnel commitment

Force the contractor to name the specific lead engineer assigned to your building — and require notice if that person leaves or is reassigned.

Sample RFP ClauseBidder shall name the Lead Technician assigned to Property. Any substitution requires 30 days written notice and a transition meeting between outgoing and incoming personnel.
10

Insurance requirements

Minimum $5M general liability, $2M automobile, $2M professional liability. Force a Certificate of Insurance with the bid.

Sample RFP ClauseBidder shall maintain minimum insurance: $5M General Liability, $2M Auto Liability, $2M Professional Liability, current WSIB. Certificate of Insurance shall be provided with bid submission and annually thereafter.
11

Reference & certification requirements

Force TSSA registration verification, minimum 3 comparable references, and ACMO membership (signals condo expertise).

Sample RFP ClauseBidder shall provide (a) TSSA Contractor Registration Number; (b) Class 4 Boiler Operator certification for lead technicians; (c) ACMO membership status; (d) three comparable references from GTA high-rise condominiums.
12

Termination clauses

Two-to-three year term with 90-day termination-for-cause and 60-day termination-for-convenience protects the board without spooking the contractor.

Sample RFP ClauseTerm shall be 3 years with 90-day Termination for Cause and 180-day Termination for Convenience. Automatic renewal for 1-year terms unless either party provides 90 days written notice.

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The scoring rubric that makes bids objective

Once you have three or more bids answering the same 12 clauses, score them on this weighted rubric. Present the scored comparison to the board — it removes emotion and lets the numbers speak.

Scoring CategoryWeight
Total realistic annual cost (Base Fee + expected change orders)40%
Scope completeness (exclusion count, inverse-scored)25%
Response-time SLA + reference quality20%
Capital planning & compliance reporting quality15%

Never award based solely on lowest monthly fee. The true cost is what you'll actually spend — Base Fee plus exclusions plus emergency delta plus change orders. A contractor with a 15% higher Base Fee and zero exclusions almost always costs less in total than a lowest-bidder contract with 40% of items excluded.

Red flags to reject immediately

  1. Refuses to state after-hours rates in writing. They know the surcharge is the profit.
  2. Bid missing more than 3 of the 12 clauses above. They're either sloppy or hiding something. Both are disqualifying.
  3. Cannot produce TSSA registration number. Illegal to operate on boilers/pressure vessels in Ontario without it.
  4. No condo references or all references from the same year. Signals a new operator or a churn problem.
  5. Requires 5-year+ minimum term with no break clause. Locks you into their pricing without leverage.
  6. Base Fee more than 40% below middle-of-market benchmarks. Almost certainly hiding change-order strategy.

Frequently Asked Questions

What should a commercial HVAC RFP include?

Every commercial HVAC RFP should force disclosure on 12 items: flat-rate scope, after-hours emergency rates, water treatment, refrigerant top-ups, controls calibration, TSSA coordination, capital plan delivery, exclusions list, response-time SLAs, insurance certificates, key personnel, and termination clauses.

How should property managers score competing HVAC bids?

Use a weighted scoring rubric — 40% total realistic annual cost, 25% scope completeness, 20% response-time SLA and reference quality, 15% capital planning delivery. Never award solely on lowest monthly fee.

How long should an HVAC contract term be?

Two to three years with a 90-day termination-for-cause clause. Shorter than 2 years, contractors won't invest in your systems. Longer than 3 years without break clauses, you lose leverage.

What insurance should an HVAC contractor carry?

Minimum $5M general liability, $2M automobile, $2M professional liability, and WSIB coverage. For refrigerant and pressure vessel work, TSSA registration is mandatory under O. Reg. 220/01.