Heat Pump Conversion (Gas Furnace to Electric Heat Pump)

This proposal covers conversion of the existing gas-furnace + AC system at {{client_address}} to an all-electric heat pump system.

Removal

• Recover refrigerant from existing AC per EPA §608

• Disconnect and remove existing gas furnace, cap gas line at closest accessible joint, and tag

• Remove existing AC condenser, evaporator coil, refrigerant lines (if incompatible with new system)

• Haul-off all old equipment and dispose per local regulations

Install

• Install new {{heat_pump_model}} condenser on new isolation pad

• Install new variable-speed air handler in existing mechanical space

• Replace refrigerant line set if existing is incompatible or undersized

• Install new condensate drain with float switch and secondary drain pan

• Install {{backup_heat_kw}} (if selected) for supplemental heat on coldest days

• New electrical whip, disconnect, and dedicated breakers for condenser and air handler (panel capacity verified; upgrade priced separately if needed)

• Low-voltage thermostat wire to new communicating thermostat

Commissioning

• Evacuate and charge new refrigerant per manufacturer weigh-in

• Verify heating and cooling mode operation, defrost cycle, and static pressure

• Set up communicating thermostat, Wi-Fi integration, and homeowner walkthrough

• Register manufacturer warranty (10-year parts on most systems)

**Rebate documentation:** {{contractor_name}} provides AHRI certificate, equipment serial numbers, and signed invoice sufficient for federal 25C tax credit and utility rebate applications. {{eligible_rebates}}

Estimated duration: 1–2 working days.

• **Day 1:** Removal of old equipment, set new condenser and air handler, refrigerant line set

• **Day 2 (if needed):** Electrical work, commissioning, thermostat setup, walkthrough

Start date: {{start_date}}.

**Total contract price: {{total}}** (before rebates and tax credits)

• **Deposit: {{deposit}}** — at signing

• **Balance: remainder** — at commissioning

**Estimated customer cost after incentives:** depends on eligibility for federal 25C tax credit (up to $2,000 on qualifying heat pumps) and any applicable utility rebate. {{contractor_name}} does not guarantee rebate amounts or timelines; rebate and tax-credit eligibility is {{client_name}}'s responsibility to verify.

Balance due same-day at commissioning. Financing options available through third-party lenders. {{contractor_name}} submits rebate documentation within 7 business days of project completion; rebate checks are sent by the utility or IRS directly to {{client_name}}.

Invoices are due upon receipt. Payments more than ten (10) calendar days past due accrue a service charge of one and one-half percent (1.5%) per month on the unpaid balance, or the maximum rate permitted by law, whichever is less. {{contractor_name}} reserves the right to stop work and preserve lien rights if any progress payment is not received within five (5) business days of the due date. All retained mechanic's lien, stop notice, and bond rights under applicable state law are preserved.

The following items are specifically NOT included in the contract price and are the responsibility of {{client_name}} unless added by written Change Order:

• Permits, plan-review fees, and jurisdictional inspection fees unless explicitly itemized above

• Repair or remediation of pre-existing code violations discovered during the work

• Asbestos, lead paint, mold, or other hazardous material abatement

• Structural engineering, architectural drawings, or third-party design services

• Finish selections, fixtures, or appliances not listed in the itemized scope

• Work on concealed systems (electrical, plumbing, HVAC, framing) beyond the points of connection identified

• Landscaping restoration beyond returning disturbed areas to rough grade

• Post-completion cleaning beyond construction broom-clean

• Electrical panel upgrade (200A service upgrade typically $2,800–$5,200, priced separately)

• Duct replacement or modification

• Insulation upgrades to improve heat pump performance

• Smart home integration beyond basic Wi-Fi thermostat

• Removal of existing gas meter or main gas line shutoff (coordinate with gas utility)

• IRA tax-credit filing assistance (consult CPA; {{contractor_name}} provides AHRI certificate)

This proposal is based on the following assumptions. If any assumption is incorrect, the contract price and schedule are subject to adjustment by Change Order:

• Site access is available during normal working hours (7am–5pm, Monday–Saturday)

• Adequate parking is available within 100 feet of the work area

• Electrical power and potable water are available on-site at no cost to contractor

• Existing structural elements, waste lines, water supply, and electrical service are in serviceable condition unless noted

• {{client_name}} will remove personal property, artwork, and valuables from the work area prior to start

• Work is based on a single mobilization; re-mobilization required due to delays outside contractor's control will be billed at current rates

• Existing electrical panel has 60A+ capacity available for the new heat pump system

• Existing ductwork is in acceptable condition for heat pump airflow (static pressure under 0.5" WC)

• {{client_name}} understands cold-climate heat pump operation and backup strip heat engagement below rated temperature

Any modification to the scope, specifications, materials, or schedule set forth in this agreement must be authorized in writing as a Change Order signed by both parties before the work is performed. Each Change Order will describe the modified scope, any adjustment to the contract price, and any impact on the schedule. Verbal instructions do not modify this agreement. Additional time and cost associated with unforeseen conditions — including but not limited to concealed rot, asbestos, mold, faulty prior installation, unmarked utilities, or code-required upgrades triggered by the work — will be documented as a Change Order and billed at the rates stated in this proposal or at {{contractor_name}}'s then-current published labor rates, whichever is in effect at the time the condition is discovered.

{{contractor_name}} warrants the workmanship of the installed work for a period of one (1) year from the date of substantial completion. Manufacturer warranties on materials and equipment pass through to {{client_name}} as provided by the manufacturer and are the exclusive source of any material warranty. This warranty does not cover normal wear, abuse, neglect, acts of God, subsequent work performed by others, damage from settlement or movement of the building, or modifications to the installed work performed without written consent. To make a warranty claim, {{client_name}} must notify {{contractor_name}} in writing within thirty (30) days of discovering the alleged defect and allow reasonable access to inspect and repair.

This proposal is valid for 30 days from the proposal date ({{proposal_date}}). Pricing is subject to change after that date due to material market fluctuations and scheduling availability. Acceptance requires signature below and receipt of the deposit amount stated in Payment Terms. Upon acceptance, this proposal, together with any attached specifications and subsequent written Change Orders, constitutes the complete agreement between the parties and supersedes any prior oral or written discussions.

**{{contractor_name}}** — License {{contractor_license}}

By: ________________________ Date: ______________

Print Name: ________________________

**{{client_name}}** — Owner / Authorized Representative

By: ________________________ Date: ______________

Print Name: ________________________

Property Address: {{client_address}}