According to Service Roundtable, the warranty differs from other programs in three key ways. First, it will include a rebate based on usage, with the goal of offering savings to contractors. Second, the 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 wave the deductible if the homeowner buys a service agreement or keep it.
Third, all forms are filed over the Internet. The back end savings and efficiency is cited as one of the reasons the company is able to offer a rebate.
Contractors set the labor rate, which determines warranty pricing. Service Roundtable explained that the pricing is the same as contractors would pay if they purchased a similar type of warranty through other sources.
The Contractor Service Solution is administered by Equiguard. The company has also provided Service Roundtable members with an e-mail hotline to answer questions.
"Believe it or not, we do not make a dime for this program," said Matt Michel, Service Roundtable CEO. "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 Service Roundtable. If a contractor purchases a moderate amount of extended warranties, the rebate will easily exceed the membership costs of the Service Roundtable."
Publication date: 05/31/2004