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This report outlines findings resulting from a U.S. Department of Energy Building America expert meeting to determine how HVAC companies can transition from a traditional contractor status to a service provider for whole house energy upgrade contracting. 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; and (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

Building America Expert Meeting Report: Transitioning Traditional HVAC Contractors to Whole House Performance Contractors