According to Service Roundtable, the extended warranty program differs from other programs in three key ways. First, it includes a rebate based on usage that offers savings to contractors.

Second, the extended warranty includes a requirement for annual maintenance. If a system has not been maintained, the homeowner must pay a deductible direct to the contractor. Contractors can waive the deductible if the homeowner buys a service agreement or keeps it, making the warranty work more profitable, the organization says.

Third, all forms are filed over the Internet. The back-end efficiency and savings provided is cited as one of the reasons the company is able to offer a rebate.

Contractors set the labor rate, which determines warranty pricing. The pricing is the same as contractors would pay if they purchased a similar type of warranty through other sources, says Service Roundtable.

The Contractor Service Solution is administered by Equiguard, a well-known provider of third party extended warranties. Equiguard is also providing Service Roundtable members with an e-mail hotline for quick answers to any questions.

"Believe it or not, we do not make a dime from this program," said Service Roundtable CEO Matt Michel. "We set out to create a program that saves money for contractors. All of the savings is passed directly to the contractors. It's one more benefit of membership in the Service Roundtable. If a contractor purchases a moderate amount of extended warranties, the rebates will easily exceed the membership costs of the Service Roundtable."

Michel continued, "Control of the end customer is another key issue. The contractor controls his customers. There are no hidden provisions where someone can take control of the warranty and give it to another, more favored contractor."

The Contractor Service Solution is available exclusively to Service Roundtable members.

The Service Roundtable is a private contractor group serving the HVAC and plumbing industries. For more information, visit www.serviceroundtable.com.

Publication date: 06/07/2004