Building America Expert 

Meeting Report: Transitioning 

Traditional HVAC Contractors 

to Whole House Performance 

Contractors

Arlan Burdick

IBACOS, Inc.

October 2011
NOTICE

This report was prepared as an account of work sponsored by an agency of the 

United States government. Neither the United States government nor any agency 

thereof, nor any of their employees, makes any warranty, express or implied, or 

assumes any legal liability or responsibility for the accuracy, completeness, or 

usefulness of any information, apparatus, product, or process disclosed, or represents 

that its use would not infringe privately owned rights. Reference herein to any specific 

commercial product, process, or service by trade name, trademark, manufacturer, or 

otherwise does not necessarily constitute or imply its endorsement, recommendation, 

or favoring by the United States government or any agency thereof. The views and 

opinions of authors expressed herein do not necessarily state or reflect those of the 

United States government or any agency thereof.

Available electronically at http://www.osti.gov/bridge

Available for a processing fee to U.S. Department of Energy

and its contractors, in paper, from:

U.S. Department of Energy

Office of Scientific and Technical Information

P.O. Box 62

Oak Ridge, TN 37831-0062

phone: 865.576.8401

fax: 865.576.5728

email: mailto:reports@adonis.osti.gov

Available for sale to the public, in paper, from:

U.S. Department of Commerce

National Technical Information Service

5285 Port Royal Road

Springfield, VA 22161

phone: 800.553.6847

fax: 703.605.6900

email: orders@ntis.fedworld.gov

online ordering: http://www.ntis.gov/ordering.htm

Printed on paper containing at least 50% wastepaper, including 20% postconsumer waste
i

Building America Expert Meeting Report: Transitioning Traditional 

HVAC Contractors to Whole House Performance Contractors

Prepared for: 

Building America

Building Technologies Program

Office of Energy Efficiency and Renewable Energy 

U.S. Department of Energy 

Prepared by: 

Arlan Burdick

IBACOS, Inc.

2214 Liberty Avenue

Pittsburgh, Pennsylvania 15222

NREL Technical Monitor: Michael Gestwick

Task Order KNDJ-0-40341-02

September 2011
ii

[This page left blank]
iii

Contents

List of Figures ............................................................................................................................................ iv

List of Tables ............................................................................................................................................... v

Definitions................................................................................................................................................... vi

Executive Summary.................................................................................................................................. vii

1 Background on Transitioning Traditional HVAC Contractors to Whole House Performance 

Contractors ........................................................................................................................................... 1

2 Meeting Logistics ................................................................................................................................. 2

2.1 Topic ..................................................................................................2

2.2 Location and Time ...............................................................................................................2

2.3 Attendees..............................................................................................................................2

3 Meeting Objectives and Agenda ......................................................................................................... 3

3.1 IBACOS’ Research Questions.............................................................................................3

3.2 Meeting Specific Objectives................................................................................................3

3.3 Agenda .................................................................................................................................3

4 Presentation.......................................................................................................................................... 4

5 Discussion............................................................................................................................................. 6

5.1 Transition Point Ratings ......................................................................................................6

5.1.1 Business Planning/Process.......................................................................................6

5.1.2 Marketing/Customer Contact...................................................................................9

5.1.3 Assessment.............................................................................................................11

5.1.4 Sales.......................................................................................................................14

5.1.5 Contract Administration.........................................................................................17

5.1.6 Production..............................................................................................................18

5.1.7 Customer Service ...................................................................................................20

5.2 Information/Deliverable Structure .....................................................................................22

6 Conclusions and Next Steps............................................................................................................. 23

References................................................................................................................................................. 25

Appendix 1. Expert Meeting Presentation.............................................................................................. 26

Appendix 2. Full Value Ratings of Work Activities................................................................................ 27
iv

List of Figures

Figure 1. Operational Profile Hierarchy ................................................................................................. viii

Unless otherwise noted, all figures were created by IBACOS.
v

List of Tables

Table 1. Expert Meeting Contributors/Listen-only Participants (*)........................................................ 2

Table 2. Expert Meeting Agenda................................................................................................................ 3

Table 3. Typical High-Level Business Operations Profile or “Map” of Whole House Performance 

Contractor ............................................................................................................................................. 5

Table 4. Business Planning/Process “Map”............................................................................................. 7

Table 5. Relative Rating of the Work Activities of Business Planning/Process................................... 8

Table 6. Marketing/Customer Contact “Map”........................................................................................... 9

Table 7. Relative Rating of the Work Activities of Marketing/Customer Contact............................... 11

Table 8. Assessment “Map”..................................................................................................................... 12

Table 9. Relative Rating of the Work Activities of Assessment........................................................... 13

Table 10. Sales “Map”............................................................................................................................... 15

Table 11. Relative Rating of the Work Activities of Sales..................................................................... 16

Table 12. Contract Administration “Map”............................................................................................... 17

Table 13. Relative Rating of the Work Activities of Contract Administration..................................... 18

Table 14. Production “Map”..................................................................................................................... 19

Table 15. Relative Rating of the Work Activities of Production ........................................................... 20

Table 16. Customer Service “Map” ......................................................................................................... 21

Table 17. Relative Rating of the Work Activities of Customer Service ............................................... 22

Unless otherwise noted, all tables were created by IBACOS.
vi

Definitions

NREL National Renewable Energy Laboratory
vii

Executive Summary

IBACOS has embarked upon a research effort under the Building America Program to 

understand business impacts and change management strategies for HVAC companies. HVAC 

companies can implement these strategies in order to quickly transition from a “traditional” 

heating and cooling contractor to a service provider for whole house energy upgrade contracting. 

Due to HVAC service contracts, which allow repeat interaction with homeowners, HVAC 

companies are ideally positioned in the marketplace to resolve homeowner comfort issues 

through whole house energy upgrades. 

There are essentially two primary ways to define the routes of transition for an HVAC contractor 

taking on whole house performance contracting:

1. Sub-contracting out the shell repair/upgrade work

2. Integrating the shell repair/upgrade work into their existing business.

IBACOS held an Expert Meeting on the topic of Transitioning Traditional HVAC Contractors to 

Whole House Performance Contractors on March 29, 2011 in San Francisco, CA. 

The major objectives of the meeting were to:

Review and validate the general business models for traditional HVAC companies and whole 

house energy upgrade companies

Review preliminary findings on the differences between the structure of traditional HVAC 

Companies and whole house energy upgrade companies 

Seek industry input on how to structure information so it is relevant and useful for traditional 

HVAC contractors who are transitioning to becoming whole house energy upgrade contractors

Seven industry experts identified by IBACOS participated in the session along with one 

representative from the National Renewable Energy Laboratory (NREL). The objective of the 

meeting was to validate the general operational profile of an integrated whole house 

performance contracting company and identify the most significant challenges facing a 

traditional HVAC contractor looking to transition to a whole house performance contractor. 

To facilitate the discussion, IBACOS divided the business operations profile of a typical 

integrated whole house performance contracting company (one that performs both HVAC and 

shell repair/upgrade work) into seven Operational Areas with more detailed Business Functions 

and Work Activities falling under each high-level Operational Area. The expert panel was asked 

to review the operational profile or “map” of the Business Functions. The specific Work 

Activities within the Business Functions identified as potential transition barriers were rated by 

the group relative to the value in IBACOS creating guidance ensuring a successful transition and 

the relative difficulty in executing. 
viii

Figure 1. Operational Profile Hierarchy

Fifteen specific Work Activities were rated as highest in value in guidance to the transitioning 

contractor:

• Technical Training

• Equipment Requirements

• Vendor Relations 

• Strategic Planning

• Customer Education Process

• Community Engagement

• Assessment Arrival Process

• On-Site Customer Interview

• Whole House Assessment

• Customer Presentation Package

• Assessment Report

• State or Local Program Reporting

• Work Scope/Procedures

• Job Completion Verification

• Sub-Contracting 

Finally, the expert panel discussed the form and structure in which guidance to the industry 

would best serve traditional HVAC contractors interested in transitioning their business. The 

value of a white paper was called into question by the group as well as the value of webinars, if 

either are not too long in length. The use of the HVAC equipment distributor and/or 

manufacturer as a point of contact or outlet of information to the transitioning contractor was 

highlighted as a valuable resource. Keeping the information in short, understandable chunks was 

unanimously agreed upon. IBACOS will use the information collected at this meeting to refine 

our research plan and upcoming activities.

Operational Area

Business 

Function

Work 

Activity

Work 

Activity

Business 

Function

Work 

Activity

Work 

Activity

Business 

Function

Work 

Activity

Work 

Activity
1

1 Background on Transitioning Traditional HVAC Contractors to 

Whole House Performance Contractors

IBACOS believes that an HVAC company is well-suited to take on the tasks of whole house 

energy upgrades and advance large scale energy efficiency in the residential market. Yet, HVAC 

companies need guidance on how to successfully transition from their traditional business 

strategy to one that includes whole house performance contracting. Providing these contractors 

with new technical skills and a revised business approach is one way to achieve widespread 

industry change.

IBACOS has embarked upon a research effort under the Building America program to 

understand business impacts and change management strategies HVAC companies can use to 

quickly transition from a “traditional” heating and cooling contractor to one that provides whole 

house energy upgrades. For these companies, energy upgrades may be a new guiding corporate 

strategy, a complementary but separate in-house service offering, or a service to be offered in 

partnership with other qualified contractors. IBACOS will use the knowledge gained from this 

research to develop guidelines and other relevant documentation that can help HVAC contractors

quickly understand: 

• The different business strategies of whole house performance contracting

• What is involved in changing their business

• The quickest and most efficient method to make changes

• Barriers and lessons learned by others who have already made the transition

IBACOS is currently working to document business approaches and “transformation pathways” 

through a literature search and interviews with a variety of companies. IBACOS held an Expert 

Meeting to validate work performed to date and to ask industry representatives to comment on 

the outlined research approach.
2

2 Meeting Logistics

The Expert Meeting was conducted on March 29, 2011 in San Francisco, CA, prior to the 

Affordable Comfort Institute 2011 National Convention. Seven industry experts identified by 

IBACOS participated in the session along with a representative of NREL. 

2.1 Topic

Transitioning Traditional HVAC Contractors to Whole House Performance Contractors 

2.2 Location and Time

San Francisco Marriott Marquis Hotel 

55 Fourth Street

San Francisco, CA 94103 

March 29, 2011 

1:00PM – 4:30PM

2.3 Attendees

The meeting included contributions from seven industry representatives plus two IBACOS team 

members and a representative from NREL. Additionally, three individuals participated in some 

or all of the meeting via the webinar in listen-only mode. All meeting attendees are listed in 

Table 1.

Table 1. Expert Meeting Contributors/Listen-only Participants (*)

Name Organization

Jerry Unruh ABC Heating & Cooling 

Services

Joe Kuonen CLEAResults Consulting, Inc.

Dick Kornbluth Dick Kornbluth LLC

Stephen Self EGIA

Arn BurdickΥ IBACOS, Inc.

Duncan PrahlΥ IBACOS, Inc.

Glenn Cottrell* IBACOS, Inc.

Dan Kartzman Powersmith Home Energy 

Solutions

Blain Fox Warm Thoughts

David Erne Booz Allen Hamilton

Mike Gestwick NREL

David Mallay* NAHB Research Center

Craig Savage* BARA

Υ Speaker
3

3 Meeting Objectives and Agenda

A presentation was made by IBACOS outlining the typical business operations of a whole house 

performance contracting company. This was followed up by a 3-hour discussion on those areas 

that differ between a traditional HVAC contractor and that of a whole house performance 

contractor with an emphasis on the areas that present the greatest transition challenges. 

3.1 IBACOS’ Research Questions

IBACOS has defined the following research questions relative to this area of study:

• What are the business best practices associated with well-run whole house performance 

contracting companies?

• What are the business profiles for HVAC companies to offer whole house performance 

contracting?

• What are transition strategies for HVAC companies who want to become home 

performance contractors?

3.2 Meeting Specific Objectives

The major objectives of the Expert Meeting were to:

• Review and validate the general business strategies for traditional HVAC companies and 

whole house energy upgrade companies

• Review preliminary findings on the differences between the structure of traditional 

HVAC Companies and whole house energy upgrade companies

• Seek industry input on how to structure information so it is relevant and useful for 

traditional HVAC contractors who are transitioning to becoming whole house energy 

upgrade contractors

3.3 Agenda

The meeting closely followed the agenda found in Table 2.

Table 2. Expert Meeting Agenda

1:00 – 1:15 pm Introductions and Project Overview; IBACOS

1:15 – 2:15 pm Presentation of business strategies, company differences, and structure 

of anticipated Guideline document(s); IBACOS

2:15 – 2:30 pm Break

2:30 – 4:15 pm Roundtable Discussion: Findings to date, structure of future Guideline 

and other documentation that are expected to come from this research

4:15 – 4:30 pm Summary, Next Steps, and Meeting Conclusion
4

4 Presentation

The presentation delivered by IBACOS (Appendix 1) highlighted the objectives of the research 

project, the results of work performed thus far by IBACOS to identify a typical whole house 

performance contracting company business profile and the initial identification of critical 

transition points or challenges facing the traditional HVAC contractor moving into the energy 

upgrade business. Three reasons for focusing on the HVAC contractor were presented:

1. An HVAC company may already have an ongoing service relationship with a 

homeowner.

2. The core competencies of an HVAC company are already with a technically complex 

system in the house.

3. An HVAC company has much to gain from incorporating whole house thinking to their 

service offering (i.e. improved shell with new HVAC = better performance = fewer call 

backs and more referrals).

IBACOS then presented two primary routes of transition for an HVAC contractor taking on 

whole house performance contracting:

1. Sub-contracting out the shell repair work

2. Integrating the shell repair work into their existing business. 

Table 3 shows the assumptions, based on the PIER Whole House Contracting Study, trade 

magazine literature searches, and interviews performed by IBACOS with industry experts 

leading up to the Expert Meeting. These interviews helped to identify how an integrated whole 

house performance contracting company could be divided into seven Operational Areas. Key 

Business Functions were shown falling within each Operational Area. Business Functions where 

the transitioning HVAC contractor are anticipated to struggle and would benefit from guidance 

are highlighted in the table and were used to form the basis of discussion with the expert panel, 

and referred from this point forward as “Transition Points.”

To facilitate further discussion of these Transition Points, each of the Business Functions were 

broken down to reflect their respective Work Activities. Following the presentation, the expert 

panel was asked to rate each of the Work Activities for its importance, ensuring a successful 

transition. Additionally, the relative difficulty of successfully executing each Work Activity as 

an element of a new business strategy was defined by the group. 

Those Transition Points receiving the highest value and most difficulty rating will become the 

focus of IBACOS’ next phase of work, leading to the development of guidelines and other 

relevant documentation to help HVAC contractors to successfully transition the business 

operations. Ratings are discussed in Section 5 and tabulated in Appendix 2. 
5

Table 3. Typical High-Level Business Operations Profile or “Map” of Whole House Performance Contractor

Operational 

Area

Business 

Planning/ 

Processes

Marketing/ 

Customer 

Contact

Assessment Sales Contract 

Administration

Production Customer 

Service 

Business 

Functions

Training PR Strategies Customer 

Interaction

Proposal Contracting Project 

Planning & 

Scheduling

Customer 

Relations

Employee 

Relations

Advertising 

Strategies

Whole House 

Assessment

Sales 

Presentation 

to Customer

Customer 

Financing 

Project 

Implementation

Warranty 

Requests 

Resolution

Procurement Customer 

Referral 

Strategies

Closing Rebate and 

Incentive

Quality 

Assurance

Subcontracts Call 

Management

Accounts 

Receivable / 

Payable

Strategic 

Planning

Lead 

Management

Grey highlighted Business Functions indicates areas of anticipated transition challenges – “Transition Points.”
6

5 Discussion

Following the presentation and in effort to achieve the first two meeting objectives listed in 

Section 3.2 (“Review/Validate” and “Review Differences”) the expert panel was asked to rate 

each of the Work Activities for its importance to the transitioning contractor and the relative 

difficulty in executing that activity in an HVAC business.

5.1 Transition Point Ratings

Under each of the seven Operational Areas, IBACOS sought the experts’ validation on the 

completeness of the business profile or “map” and the appropriateness of IBACOS’ assessment 

of the Transition Points. 

The rating of the specific Business Functions were broken down as #1 = low value to the 

transitioning contractor through #4 = highest value to the transitioning contractor as well as 

#1 = easiest to execute through #4 = most difficult to execute. 

5.1.1 Business Planning/Process

Training, Procurement, Subcontracts, and Strategic Planning were identified by IBACOS during 

the early literature searches as the Business Functions that would be Transition Points for a 

traditional HVAC contractor undertaking whole house energy upgrades. These Transition Points 

were validated by the group and the Work Activities, highlighted in Table 4, represent the 

transition challenges in this area. 
7

Table 4. Business Planning/Process “Map”

Operational 

Area

Business Planning/Processes

Business 

Function

Training Employee 

Relations

Procurement Subcontracts Strategic 

Planning

Work 

Activities

Technical Job 

Progression/ 

Growth

Manufacturer 

Relations

Vendor 

relations

Company 

Mission/

Vision

Safety Retention Material 

Inventory

Pricing Five Year 

Strategic Plan

Management Compensation New 

Equipment

One year 

operational 

plan

Sales Referral bonus Equipment 

maintenance/ 

repair/ 

calibration

Management 

Objectives

Quality 

Management

Pricing Quality 

Management

Internal 

Lead

Leadership 

Team

Leadership 

Team

Leadership 

Team

Leadership 

Team

Leadership 

Team

External 

Resources

Training/

certification 

providers

HR/Quality 

Management 

Consultants

Manufacturers Subcontractors

Manufacturers

Management 

Consultants

The yellow highlight indicates specific area modifications to business processes that are likely 

when transitioning to a whole house performance contractor.

The Work Activities identified as Transition Points for the Business Planning/Process area were:

Technical Training 

Manufacturer Relations 

Equipment Inventory 

Equipment Maintenance/Calibration 

Vendor Relations 

Strategic Planning 

The relative rating of the Work Activities under Business Planning/Process are shown in Table 5. 
8

Table 5. Relative Rating of the Work Activities of Business Planning/Process

Business Planning / Processes

Easy Hard

More Value

Technical Training

Value : 4

Difficulty : 2

Equipment Inventory

Value : 4

Difficulty : 3

Vendor Relations and 

Strategic Planning

Value : 4

Difficulty : 4

Less Value

Equipment Maintenance 

/Calibration

Value : 2

Difficulty : 2

Manufacturer Relations

Value : 1

Difficulty : 1

The highest rated Transition Points for the Business Planning/Process area were guidance on 

Vendor Relations and Strategic Planning followed by Equipment Inventory. Vendor Relations, 

understanding the needs when sub-contracting out shell or other work, was identified as both 

very important and difficult. The discussion on the subject of sub-contracting lead into the 

Strategic Planning discussion and a need for a pros/cons comparison of using subcontractors or 

developing a department within the business. Strategic Planning was highly rated. Buy in from 

the entire company to the cultural change of the company was identified as a potential challenge. 

Understanding of the equipment required was important, but tool sales outlets are making it 

easier by bundling tools together into packages. 

Technical Training was rated as a high value to the contractor, but not difficult to achieve once a 

company understood what was needed. Conversation centered on the confusion with different 

certification agencies. It was put forth that the training requirements were regional in nature, but 

ongoing and never ending. 
9

Lower rated points were Equipment Maintenance/Calibration and Manufacturer Relations. 

Calibration of equipment is not a new concept to the HVAC contractor, however, the level of 

calibration or amount of equipment needing calibration is a Transition Point. Manufacturer 

Relations were not deemed to be a significant transition issue. 

5.1.2 Marketing/Customer Contact

PR Strategies, Customer Referral Strategies, and Call Management were identified during the 

early literature searches as the Business Functions that would be Transition Points for a 

traditional HVAC contractor undertaking whole house energy upgrades. These Transition Points 

were validated by the group and the Work Activities, highlighted in Table 6, represent the 

transition challenges in this area. 

Table 6. Marketing/Customer Contact “Map”

Operational 

Area

Marketing/Customer Contact

Business 

Function

PR 

Strategies

Advertising 

strategies

Customer 

Referral 

strategies

Call 

Management

Lead 

Management

Work 

Activities

Newspaper Newspaper Community 

Engagement

Call Scripting 

(Inbound and 

Recurring)

Sales 

Coordination

Local TV/ 

Radio

Local TV/ 

Radio

Social Media Inbound Call 

Process (New 

Leads)

Lead Database 

and tracking

“Local 

Expert”

Billboards Direct 

referral 

programs

Recurring Call 

Schedule 

(Service 

Appointments)

Lead 

Qualification

Customer 

Education

Neighborhood 

Blitz

Newsletter/ 

(e – or paper)

Scheduling

Home 

Shows

Website Service Tech 

Referrals

Appointment 

Verification

Search Engine 

Optimization

Internal 

Lead

Marketing Marketing Marketing Operations Sales/ 

Operations

External 

Resources

PR Agency Ad Agency/ 

Designer

Ad Agency/ 

Designer/ 

Community 

Groups

Sales 

Consultant

Sales 

Consultant

The yellow highlight indicates specific area modifications to business processes that are likely 

when transitioning to a whole house performance contractor.
10

The Work Activities identified as Transition Points for the Marketing/Customer Contact area 

were:

• Customer Education 

• Community Engagement 

• Social Media 

• Direct Referral Programs 

• Newsletter 

• Service Tech Referrals 

• Call Scripting 

• Inbound Call Process 

• Recurring Call Schedule 

The relative rating of the Work Activities under Marketing/Customer Contact are shown in 

Table 7.
11

Table 7. Relative Rating of the Work Activities of Marketing/Customer Contact

Marketing / Customer Contact

Easy Hard

More Value

Customer Education and 

Community Engagement

Value : 4

Difficulty : 4

Less Value

Direct Referral Programs, 

Service Tech Referrals, Call 

Scripting and Inbound Call 

Process

Value : 2

Difficulty : 1

Vendor Relations,

Strategic Planning

Value : 1

Difficulty : 1

The highest rated Transition Points for the Marketing/Customer Contact are Customer Education 

and Community Engagement. It was acknowledged that Whole House Performance Contracting 

is a new industry with little customer awareness. The message of the industry cannot be 

described in a 30-second advertising spot or print advertising. It requires an in-depth 

conversation to properly convey the message. The mindset change from selling equipment to 

selling whole house solutions is an area the group confirmed to be of high value. The Whole 

House Performance Contractor must take on Customer Education. Guidance in this area is 

valuable. 

The remaining areas of Marketing/Customer Contact were viewed as similar between the HVAC 

contractor and the Whole House Performance Contractor, so little value was placed on guidance 

in these areas. The process is the same but the script will change. 

5.1.3 Assessment

Customer Interaction and Whole House Performance Assessment were identified by IBACOS 

during the early literature searches as the Business Functions that would be Transition Points for 

a traditional HVAC contractor undertaking whole house energy upgrades. These Transition 

Points were validated by the group and the Work Activities, highlighted in Table 8, represent the 

transition challenges in this area. 
12

Table 8. Assessment “Map”

Operational 

Area

Assessment

Business 

Function

Customer Interaction Whole House Performance Assessment

Work 

Activities

Pre-Audit Preparation Call Exterior Architectural Features Assessment 

Arrival Process Interior Building Features Assessment 

On Site Customer interview

Comfort, Energy, Dust, Mold, Moisture, Respiratory, 

Sound, Other???

Thermal Enclosure Components

• Insulation

• Fenestration / Doors

Space Conditioning System Assessment 

Plumbing System Assessment 

Electrical System Assessment 

Moisture Assessment 

System Testing

Home Energy Upgrade Modeling

Internal Lead Operations Operations 

External 

Resources

The yellow highlight indicates specific area modifications to business processes that are likely when transitioning to a whole house 

performance contractor.
13

The Work Activities identified as Transition Points for the Assessment area were:

• Pre-Assessment Preparation 

• Arrival Process 

• On Site Customer Interview 

• Whole House Performance Assessment 

The relative rating of the Work Activities under Assessment are shown in Table 9.

Table 9. Relative Rating of the Work Activities of Assessment

Assessment

Easy Hard

More Value

Pre-Audit Preparation

Value : 4

Difficulty : 3

On Site Customer Interview 

and Whole House 

Performance Audit

Value : 4

Difficulty : 4

Less Value

Arrival Process

Value : 2

Difficulty : 2

The highest rated Transition Points in the Assessment area were the On Site Interview and the 

Whole House Performance Assessment. The Assessment process may be program driven but a 

whole house assessment is very different from the typical HVAC diagnosis and solution. PreAssessment Preparation was different and the need for guidance was given high value for the 

Assessment process in the preparation of the customer. The homeowner’s participation in the 
14

Assessment and the amount of time required for the Assessment was a critical component 

identified. 

The Arrival Process was described as similar to preparation for a typical HVAC service call and 

therefore not rated high value or difficult. 

5.1.4 Sales

Proposal, Sales Presentation to Customer, and Closing were identified during the early literature 

searches as the Business Functions that would be Transition Points for a traditional HVAC 

contractor undertaking whole house energy upgrades. These Transition Points were validated by 

the group and the Work Activities, highlighted in Table 10, represent the transition challenges in 

this area. 
15

Table 10. Sales “Map”

Operational 

Area

Sales 

Business 

Function

Proposal Sales Presentation to Customer Closing

Work 

Activities

Work Scope Development and 

Approval

Close at Audit Process Contracting

Customer Presentation Package Follow up Sales Process Identify Financing Needs

Anticipated Objections Phased Implementation Sales 

Process

Rebates / Incentives

Assessment Report Overcoming Objections

Pricing

Subcontracts

Internal Lead Sales Sales Sales / Operations

External 

Resources

Subcontractors Finance Partners

The yellow highlight indicates specific area modifications to business processes that are likely when transitioning to a whole house 

performance contractor.

The Work Activities identified as Transition Points for the Sales area were:

• Customer Presentation Process 

• Assessment Report 

• Phased Implementation Sales Process 

• Rebates/Incentive
16

The relative rating of the Work Activities under Sales are shown in Table 11.

Table 11. Relative Rating of the Work Activities of Sales

Sales

Easy Hard

More Value

Customer Presentation 

Process and Audit Report

Value : 4

Difficulty : 3

Phased Implementation Sales 

Process

Value : 3

Difficulty : 3

Less Value

Rebates/Incentives

Value : 1

Difficulty : 1

The highest rated Transition Points in the Sales area were the Customer Presentation Process and 

Assessment Report. The whole house solution is a more complex package to sell and a longer 

sales cycle than the HVAC contractor is typically used to implementing. 

Phased Implementation Sales Process where HVAC equipment may not be the highest priority of 

the project is a different realm for the transitioning contractor. 

From a Sales perspective the HVAC contractor has an understanding of and is already using 

Rebates /Incentives so little value was placed on guidance in this area. 
17

5.1.5 Contract Administration

Customer Financing was identified during the early literature searches as the Business Functions 

that would be Transition Points for a traditional HVAC contractor undertaking whole house 

energy upgrades. These Transition Points were validated by the group and the Work Activities, 

highlighted in Table 12, represent the transition challenges in this area. 

Table 12. Contract Administration “Map”

Yellow highlight indicates specific area modifications to business processes are likely when 

transitioning to a whole house performance contractor. The Work Activities identified as 

Transition Points for the Contract Administration area were:

• Financing Mechanisms 

• Loan Processing 

• Rebate and Incentive 

The relative rating of the Work Activities under Contract Administration are shown in Table 13.

Operational 

Area

Contract Administration

Business 

Function

Contract 

Processing

Customer 

Financing

Rebate and 

Incentive

Accounts 

Receivable / 

Payable

Work 

Activities

Contract Review 

and Approval

Financing 

Mechanisms

Utility Reporting Create Account

Create Work Order Loan Processing State or Local 

Program 

Reporting

Deposit 

Payments

Inventory and 

Production 

Management

Tax Credit 

Reporting

Billing

Subcontracts Payment Terms

Internal 

Lead

Operations Operations Operations Operations

External 

Resources

Subcontractors Financial Partners Program Staff
18

Table 13. Relative Rating of the Work Activities of Contract Administration

Contract Administration

Easy Hard

More Value

Rebate and Incentive

Value : 4

Difficulty : 4

Less Value

Loan Processing

Value : 1

Difficulty : 1

Financing Mechanisms

Value : 1

Difficulty : 3

The highest rated Transition Point in the Contract Administration area was Rebate and Incentive. 

This was identified by the experts as a critical specific activity IBACOS had not identified. 

Programs may conflict between Utility, State, and Federal rebates. While it is regional and 

program driven the guidance on the complexities to manage programs were rated as high value 

to the transitioning contractor. 

The need for guidance on Financing Mechanisms and Loan Processing were not rated as high 

value to the transitioning contractor.

5.1.6 Production

Project Implementation and Quality Assurance were identified during the early literature 

searches as the Business Functions that would be Transition Points for a traditional HVAC 

contractor undertaking whole house energy upgrades. These Transition Points were validated by 

the group and the Work Activities, highlighted in Table 14, represent the transition challenges in 

this area. 
19

Table 14. Production “Map”

Operational 

Area

Production

Business 

Function

Project Planning Project Implementation Quality Assurance

Work 

Activities

Scheduling

• In House

• Subcontracts

Work Scope Procedures Job Completion 

Verification

• Checklists

• Test results review

Inventory / material 

preparation

Job Safety Post Installation Field 

Verification Sample

Crew Lead Work Scope 

Review

Customer interaction 

procedures

Customer Satisfaction 

Scores 

Job Completion / Test 

Out

Change Orders Sponsoring Program 

QA

Subcontractors

Internal 

Lead

Operations/Production Production Production/ 

Operations

External 

Resources

The yellow highlight indicates specific area modifications to business processes that are likely 

when transitioning to a whole house performance contractor.

The Work Activities identified as Transition Points for the Production area were:

• Work Scope Procedures 

• Customer Interaction Procedure 

• Job Completion/Test-Out 

• Job Completion Verification

• Post Installation Verification Sample 

• Sponsoring Program QA 

• Subcontractors 

Based on the experts input, the proposed Work Activity Utility Bill Review was removed from 

Production. It was determined this was not a Production activity in the market. 

The relative rating of the Work Activities under Production are shown in Table 15.
20

Table 15. Relative Rating of the Work Activities of Production

Production

Easy Hard

More Value

Job Completion 

Verification

Value : 4

Difficulty : 1

Customer Interaction 

Procedure

Value : 3

Difficulty : 2

Subcontractors

Value : 4

Difficulty : 3

Work Scope Procedures

Value : 4

Difficulty : 4

Job Completion / Test-Out

Value : 3

Difficulty : 3

Less Value

Post Installation Verification 

Sample and Sponsoring 

Program QA

Value : 1

Difficulty : 1

The highest rated Transition Point in the Production area was Work Scope Procedures. Guidance 

on the more complex Work Scope Procedures of a whole house performance job was rated the 

most valuable, followed by guidance on managing Subcontractors if they are used and Job 

Completion/Test-Out. Communication from the Sales process to the Work Scope was 

highlighted as an important component for successful jobs. 

Job Completion Verification and Customer Interaction Procedure guidance was rated as 

valuable but not difficult for the transitioning contractor to implement.

Low value and easy implementation ratings were given to guidance on Post Installation 

Verification Sample and Sponsoring Program QA. 

5.1.7 Customer Service

Customer Relations and Warranty Requests Resolution were identified during the early literature 

searches as the Business Functions that would be Transition Points for a traditional HVAC 

contractor undertaking whole house energy upgrades. These Transition Points were validated by 

the group and the Work Activities, highlighted in Table 16, represent the transition challenges in 

this area. 
21

Table 16. Customer Service “Map”

Operational 

Area

Customer Service 

Business 

Function

Customer Relations Warranty Requests Resolution

Work 

Activities

Customer Appreciation Customer Care Intake

Certificate Scheduling

Rating Score Customer Visit Process

Guarantee Utility Bill Review

Homeowner Manual Service Call Diagnostics

Referral Cards/Lead Generation Warrantable item Repair/Replacement

Billing and Collections Manufacturer Relations

Utility/Local Program Documentation Subcontractor Management

Internal 

Lead

Operations Production

External 

Resources

The yellow highlight indicates specific area modifications to business processes that are likely 

when transitioning to a whole house performance contractor.

The Work Activities identified as Transition Points for the Contract Administration section were:

• Diagnostics 

• Repair/Replacement 

The relative rating of the Work Activities under Customer Service are shown in Table 17.
22

Table 17. Relative Rating of the Work Activities of Customer Service

Customer Service

Easy Hard

More Value Less Value

Diagnostics and 

Repair / 

Replacement

Value : 2

Difficulty : 3

Guidance on undertaking Diagnostics of a Warranty request or the Repair/Replacement of items 

needing Warranty was given a low value while the difficulty of implanting was higher. 

5.2 Information/Deliverable Structure

In seeking the experts input on how to structure information so it is relevant and useful for 

traditional HVAC contractors who are transitioning to becoming whole house energy upgrade 

contractors a few themes emerged:

• White papers are not likely to be read on a widespread basis.

• Short web-based videos that could be viewed over a lunch break or in spare time could be 

effective for some topics.

• Webinar presentations can be effective if they are not too long.

• Trade magazine articles get the initial interest.
23

• HVAC contractors rely on their distributors/manufacturers to convey trusted information.

• Face-to-face, handshake relationships are highly valued in the industry.

6 Conclusions and Next Steps

The expert panel validated the general business profile of an integrated HVAC and Shell 

contractor performing Whole House Performance contracting. The level of detail that the 

business profile was broken down to was complimented for its completeness. A few items were 

added by the experts under the Marketing/Customer Contact area regarding utilizing the HVAC 

contractors existing customer base and one item was removed from the Production area as being 

outside the scope of the business. 

Transition Points were validated and carefully rated for value of guidance and difficulty to 

implement. There were fifteen activities that rose to the top as being #4 (highest) for value to the 

transitioning contractor. The entire matrix of value to a transitioning company and difficulty to 

implement can be found in Appendix 2 of this report. 

• Technical Training

• Equipment Requirements

• Vendor Relations 

• Strategic Planning

• Customer Education Process

• Community Engagement

• Assessment Arrival Process

• On-Site Customer Interview

• Whole House Assessment

• Customer Presentation Package

• Assessment Report

• State or Local Program Reporting

• Work Scope/Procedures

• Job Completion Verification

• Sub-Contracting 

The value of guidance in the form of a white paper was called into question by the expert panel 

as well as the value of webinars if they are too long in length. The use of the HVAC equipment 

distributor/manufacturer as a point of contact or outlet of information to the transitioning 

contractor was highlighted as a valuable resource. Keeping the information in short 

understandable chunks was unanimously agreed upon. 
24

IBACOS intends to incorporate feedback from the expert panel to refine the research plan. From 

there IBACOS expects to characterize these “Highest Priority, Most Difficult to Implement” 

processes, identify the barriers or information gaps associated with these processes, determine 

which of the high value activities will be undertaken first and which structure the guidance will 

take given project time and budget constraints.
25

References

Bevilacqua Knight, Inc. 500-02-011, PIER Whole House Contracting Study. Oakland CA: 

Bevilacqua Knight. November 2003.

Rogers, Mike, Home Performance Contracting, The Journal of Light Construction, September, 

2009 Page P29-36.

Meier, Alan, Saving Home Energy After the Stimulus, Home Energy Magazine, May/June, 2009 

Page S14-S16.

Home Energy Magazine, et.al. 2009 Training Guide for Home Performance Professionals, Home 

Energy Magazine, July/August, 2009. Page 31-37.

Golden, Matt, Pathways to Scalability, Home Energy Magazine, September/October, 2009 Page 

S14-S16.

Thomas, Ed, Marketing Home Performance, Home Energy Magazine, September/October, 2009 

Page S18-S20.

Mann, Steve, Home Performance with Energy Star Roundtable, Home Energy Magazine, 

September/October, 2009 Page S38-S44.
26

Appendix 1. Expert Meeting Presentation

Transitioning Traditional HVAC Contractors to Whole House Performance Contractors (PDF 

808 MB)
27

Appendix 2. Full Value Ratings of Work Activities

Operational Area Work Activity

Value of 

Guidance 

to 

Contractor Difficulty Sum

Business Planning / 

Process Training 4 2 6

Business Planning / 

Process Manufacturer Relations 1 1 2

Business Planning / 

Process Equipment 4 3 7

Business Planning / 

Process

Equipment 

Maintenance/Calibratio

n 2 2 4

Business Planning / 

Process Vendor Relations 4 4 8

Business Planning / 

Process Strategic Planning 4 4 8

Marketing and 

Customer Contact Customer Education 4 4 8

Marketing and 

Customer Contact

Community 

Engagement 4 4 8

Marketing and 

Customer Contact Social Media 1 1 2

Marketing and 

Customer Contact

Direct Referral 

Programs 2 1 3

Marketing and 

Customer Contact Newsletter 1 1 2

Marketing and 

Customer Contact Service Tech Referrals 2 1 3

Marketing and 

Customer Contact Call Scripting 2 1 3

Marketing and 

Customer Contact Inbound Call Process 2 1 3

Marketing and 

Customer Contact Recurring Call Schedule 0 0 0

Assessment

Pre-Assessment 

Preparation 3 1 4

Assessment Arrival Process 4 3 7

Assessment

On Site Customer 

Interview 4 4 8
28

Assessment

Whole House 

Performance 

Assessment 4 4 8

Sales

Customer Presentation 

Process 4 3 7

Sales Assessment Report 4 3 7

Sales

Phased Implementation 

Sales Process 3 3 6

Sales Rebates / Incentives 1 1 2

Contract 

Administration Financing Mechanisms 1 3 4

Contract 

Administration Loan Processing 1 1 2

Contract 

Administration

State or Local Program 

Reporting 4 4 8

Production Work Scope Procedures 4 4 8

Production

Customer Interaction 

Procedure 3 2 5

Production

Job Completion / TestOut 3 3 6

Production

Job Completion 

Verification 4 1 5

Production

Post Installation 

Verification Sample 1 1 2

Production Sponsoring Program QA 1 1 2

Production Subcontractors 4 3 7

Customer Service Diagnostics 2 3 5

Customer Service Repair / Replacement 2 3 5
DOE/GO-102011-3381 ▪ October 2011

Printed with a renewable-source ink on paper containing at 

least 50% wastepaper, including 10% post-consumer waste.