Water Heater Replacement

This proposal covers replacement of the existing water heater at {{client_address}}.

Scope

• Drain, disconnect, and remove existing water heater

• Haul-off and recycle old unit

• Install new {{heater_type}} at {{location}}

• Install new 5-gallon expansion tank on cold-water supply (code-required for closed systems)

• Install new brass drain pan with drain line to approved discharge location (code required if heater is located above finished space)

• Install new gas flex connector, shutoff valve, and sediment trap (if gas)

• Install new dielectric unions on water connections

• Install thermostatic mixing valve on output (ASSE 1017 rated) — required by many AHJs and prevents scalding

• Install new T&P relief valve with discharge line to safe termination per code

• Insulate first 6 feet of cold and hot lines per 2023 IECC

• Test for leaks, commission, and verify 120°F outlet temperature

{{fuel_type}}-specific:

• **Gas:** Verify gas line sizing; sediment trap; flue draft test; manometer test of gas pressure

• **Electric:** Verify dedicated 30A breaker, 10 AWG wire, 240V circuit; test element heating sequence

• **Tankless:** Venting per manufacturer (typically concentric direct-vent through sidewall); condensate drain; Category IV flue; descale connection valves

Estimated duration: 3–5 hours for tank swaps; 6–8 hours for tankless conversions.

Start date: {{start_date}}.

Total contract price: {{total}}

• **Deposit: {{deposit}}** — signing (if required)

• **Balance: remainder** — at completion

Financing available through third-party lender.

Balance due same-day at completion and hot-water verification.

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

• Gas line upsize (if existing line is undersized for tankless conversion)

• Flue re-routing beyond 10 feet from existing location

• Electrical panel upgrade (for electric units where existing circuit is insufficient)

• Water softener or whole-house filter install

• Recirculation pump and return line (priced separately if desired)

• Drywall repair if pipes are routed through finished walls

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 water supply, drain, and gas/electric service are code-compliant at points of connection

• Access to the heater location is clear for delivery and removal

• Existing flue or venting path is usable (or replacement path allowed by code)

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}}