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rjordan392 07-23-2010 05:51 AM

Oil Burner Service Contract
 
I am moving into a single home that has an oil burner. The owner has a contract with a service company. I have not read the contract. A person that is familiar with these contracts told me that I may have to allocate $400.00 per month to pay for it. My row home has a gas furnace with no contract and my yearly cost is $1,000.00 per year. So this person's estimate of the cost seems way out of line. Do you agree? The interior dimensions of my next home is 1,970 square feet and the rooms have baseboard heating.
I also spoke with a home inspector and he said these contracts also cover the oil tank and if they leak, then it would cost many thousands of dollars to excavate the area where the tank is located and clean up the oil that leaked and repair or replace the tank if I did not have a contract.
Your opinions please.

beenthere 07-23-2010 06:21 AM

Never heard of any oil service contract that cost 400 dollars a month. For a 2000 sq ft home.
He may have been including the cost of oil.

Service contracts are not that expensive. Oil delivery contracts can be though. Depending how high you set the thermostat.

rjordan392 07-23-2010 07:41 AM

I believe oil delivery is included but even at $4,800.00 per year still seems quite high. I will know more about the contract, the next time I speak with the present owner. I live in Philadelphia, Pa and the heating season is about 6 months and my present home cost me about $1,000.00 per year for gas. My home is about 1,550 square feet. I set my thermostat for 74 degrees during the heating season.
When I compare both propertys, the cost for oil plus delivery and the service contract appears outragious. I may be better off putting the service contract money in the bank and buying a new boiler when it breaks down.

beenthere 07-23-2010 07:56 AM

Don't forget. Your basing the oil contract on someone's guesstimate.

Until you see what it really cost. No use getting an ulcer over it.

Next. Landlord's are generally responsible for a service contract, not the tenant. So you wouldn't be paying for the service contract. Just the oil.

How much oil you use. Will be dependent on how hot you like it in your house.

A landlord can make you use who they prefer for service. Since they are paying for the service. They can not make you use who they want for oil delivery, unless they pay for the oil.

rjordan392 07-23-2010 02:53 PM

The home inspector also privately told me that on a few occasions on his inspections, that some oil burners had the wrong parts installed by xxxx company employee's and on other occasions, original mfg parts were replaced with another mfg parts. I don't know if the latter makes any differance. So it appears I may also look for another oil dealer when the contract is up.

beenthere 07-23-2010 03:44 PM

Quote:

Originally Posted by rjordan392 (Post 474119)
The home inspector also privately told me that on a few occasions on his inspections, that some oil burners had the wrong parts installed by xxxx company employee's and on other occasions, original mfg parts were replaced with another mfg parts. I don't know if the latter makes any differance. So it appears I may also look for another oil dealer when the contract is up.

Hmmm. Wonder how he knows if they are the wrong parts.

Most Home Inspectors, can't fix an oil burner.

For 8 plus years now. It been recommended to use the upgraded oil burner motor on Becket burners, instead of the original type OEM motor(this is Beckets recommendation). Wonder if he knows that.

Does he take the burner apart to know what nozzle they used?

Most of the OEM primary controls are not replaced with that OEM. Because the control manufacturer, has come out with a much better control. Wonder if he knows that.

How does he know whcih oil pump the furnace came with when it was made. Since it has changed on many brands over the years. Does he have a large catalog he carries with him?

Many customers ask if there is a less expensive part, then the OEM. So generally as contractors. If we have an approved third party, or OEM approved control that cost less. We'll use it, and save that customer some money. Wonder if he knows that.

Its kind of like when you get a generic brand medicine from the pharmacy.
Same pill, or same effectiveness, less money

A Honeywell fan limit switch, is an approved replacement for a White Rodgers fan limit switch. And vice verse. Wonder if he knows that.

That Inspector, may be dinging xxx for no valid reason. Other then he doesn't like them, or doesn't know what he is talking about.

Do you specify to your auto repair shop. That they can only use the more expensive OEM parts?
Or do you let them use third party parts, that can be less then half the price?

A new Bell and Gosset 100 series circulator, wholesales for more then 200 bucks. I can use an HR series, or a Taco 007 series as a replacement, at 40% the price.

How important is OEM, if the contractor is saving you 140 bucks on the part. Or keeping their service contract price down, that you can afford it.

rjordan392 07-23-2010 04:57 PM

A differant point of view is appreciated.
I'll keep it in mind after I read the contract.


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