Members of an employee-owned company.

Welcome to the Tempo Mechanical Services, Inc., Residential New Construction (RNC) section of our Web site.

While this site is primarily designed for the building trade, homeowners and prospective homeowners can gain some insights into the complex process of building a quality home. Therefore, there are no passwords or access codes required for any part of this section of our Web site.

Target Clients - Section 1
Products - Section 2
Partnering Relationships - Section 3
Electronic Capabilities - Section 4
Design and Performance Standards - Section 5
Building Science Commitment – Section 5A
Design and Implementation Process - Section 6
Business Direction - Section 7
Environmental Issues - Section 8
Points of Difference/Customer Satisfaction - Section 9

Contact Person:
If your are a builder and wish to contact Tempo Mechanical about our service offering, including quotations, please contact Tom Murrell, Senior Vice President, at 972.579.2016. He will quickly arrange to have a qualified representative meet with you.

Homeowner’s Manual

TARGET CLIENTS - SECTION #1

Tempo Mechanical’s industry leadership in the areas of technology, engineering and organization best serves clients with the following profile:

• Production builders currently building at least 100 homes per year in the DFW area and a minimum of 250 nationally or if you have a definitive plan to get to that level, Tempo can help you.
• A custom builder building 20 plus homes per year and looking to have your HVAC professionally designed and installed.
• Understands and believes that strategic partnering with vendor/suppliers is the best way to stay competitive in the future.
• Understands the value of a formal quality program and is able to measure quality.
• Understands the importance of contractor’s ability to perform warranty service that exceeds the expectations of their homeowners.
• Wants accurate, quick and consistent pricing.
• Recognizes the value of subcontractors that arrive on time and finish their work on time.
• Understands the value of consistency of design and installation of systems so that the homeowner sees the same look for a specific house wherever that house is constructed.
• Is comfortable, or wants to become more comfortable, in an electronic environment.
• Wants a true independent, aggressive and innovative "Partner" in the highly competitive Residential New Construction market.
• Desires accurate and timely billing.

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PRODUCTS - SECTION #2

In addition to the basic products required to properly heat and cool a house, Tempo Mechanical Services, Inc. can provide a complete array of accessory products for your homeowner’s added comfort and efficiency. These products can be purchased at the time of construction and included in the mortgage package, or later through our Service organization.

• All major brands of HVAC (Heating, Ventilating and Air Conditioning) are available to Tempo Mechanical at competitive prices.
• "Environmentally Friendly" RNC products utilizing the EPA certified refrigerant 410A (contains no chlorine that attacks the ozone layer) are now available in a competitive product line for AC and heat pumps.
• Zoning systems for an enhanced degree of temperature control in a specific area.
• Enhanced filtration
  Electronic air cleaners — 95% to 99% efficient
• Extended media filters — 30% to 44% efficient
• Ultraviolet anti-fungal air treatment systems
• Humidifiers to add moisture to the indoor air
  • Promote easier breathing in dry weather
  • Protect furniture and finishes from excessive drying out
• Programmable thermostats to provide comfort and energy efficiency by coordinating the HVAC system operation with homeowner's daily schedule.
• Extended warranties to provide protection for the equipment and labor cost incurred beyond the one-year requirement.
  • Available in parts only or parts and labor agreements
  • Provides for routine maintenance to keep systems at a maximum performance level

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PARTNERING RELATIONSHIPS - SECTION #3

Tempo Mechanical understands the benefits and is committed to the obligations required of a partnering relationship. Since inception, Tempo has demonstrated this commitment with clients, vendor/suppliers and employees.

Clients

• Tempo Mechanical’s ability to retain clients is related directly to our genuine belief that what helps our clients grow and prosper will eventually benefit Tempo Mechanical.
• Our long-range view of client relationships allows us to make the infrastructure investments required to support such relationships. It is clear to us that the "continuous improvement process" must extend to our clients.

Suppliers

• Relationships with our suppliers have been longstanding. Currently, Tempo uses a limited number of suppliers for both equipment and materials needs. By keeping the number of suppliers small we feel that we can have both the benefits of competitive bidding to be a Tempo vendor and provide a vendor partner with sufficient long term volume justify the level of service we require at that competitive price.
• We encourage our vendor Partners to be proactive in bringing new and innovative products and techniques to our attention for evaluation.

Partners

• We are an Employee Owned (ESOP) company with over 45 (70%) of the Partners participating in company ownership.
• Many of our Partners have over 20 years of service with the company.
• Tempo Mechanical has recruitment and retention plans based on principals of "Servant Leadership".
• Training another Partner to perform his job function is continuously emphasized.
  • Our goal for each Partner is a minimum of 40 hours of formal training per year.
• benefit package which includes:
  • ESOP and 401(k) Participation
  • Education Support
  • Training Benefits
  • Medical, Dental and Vision Care Programs
  • Performance Based Compensation
  • Vacation and Medical Leave
  • Uniforms are supplied and laundered
  • Tool Purchasing programs
• Full disclosure of company financial performance is conveyed to all Partners on a regular basis and "Partner Recognition" is an integral part of our "All Team" meetings.
• Every Partner is reviewed individually on an annual basis.
• Every Partner is scheduled for an annual small group breakfast session with the C.E.O. and without the presence of direct supervisory personnel.
• Several company-wide social events are scheduled each year.

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ELECTRONIC CAPABILITIES SECTION #4

Technology Usage
Tempo Mechanical Services, Inc. is setting the standards of electronic information. It is clear to us that the business of the future will consist of the leaders in technology and we have and will continue to make large investments in this area. Currently we excel in:

• Home Architectural Plans received via e-mail from homebuilders
• ACCA Manual "J" heating and cooling loads on every plan
• AutoCAD HVAC Plans and Engineering
• AutoCAD material take-off generated directly from our drawings
• Integrated job cost and dispatching systems
• Scheduling database and job tracking
• Weekly backlog tracking
• Performance trend lines
• Customer Satisfaction Surveys and tracking
• Electronic Data Interface with vendors
• Purchase order and invoice reconciliation
• Just in Time Inventory
• Cellular communication with Alpha Numeric Paging
• "GPS" Vehicle tracking
• Electronic wireless dispatching

Benefit to the Builders
Our electronic and technology advancements aid our customers in a variety of ways:

• Exceptional customer service to the homebuilder and homeowner
• Predictable scheduling
• First class HVAC drawings and installation
• Cost savings generated by inventory efficiencies
• The ability to adjust manpower at peak seasons
• Ease of information transfer to and from customers

The homebuilders working with Tempo Mechanical depend on the consistency of our electronics for:

• AutoCAD Drawings
• Field generated revisions
• HVAC load calculations
• Accurate material take-offs
• Pricing
• Invoicing
• Scheduling
• Information handling

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DESIGN AND PERFORMANCE STANDARDS SECTION #5

Design Standards
Tempo Mechanical Services utilizes established proven design standards that are endorsed by the Independent Engineering Association, commonly referred to with the acronym ASHRAE or the American Society of Heating, Refrigeration and Air Conditioning Engineers. These standards govern the installation methods; acceptable materials, load calculation methodology and the appropriate testing procedures to make sure these standards are met.

Others agencies that are prominent in setting standards for HVAC systems:

1. Air Diffusion Council - Sets standards for ductwork construction and installation.
2. ACCA (Air Conditioning Contractors Association) — compiles engineering data into design manuals for use in Residential HVAC Construction.
3. FHA/VA
4. Energy Star
5. Various state, federal and local codes (including SB5) and amendments

Performance Specifications
In accordance with the Residential Warranty Corporation™ Limited Warranty Program and current NAHB Guidelines, Tempo Mechanical warrants the performance of your HVAC (Heating, Ventilating and Air Conditioning) system to maintain an average room temperature within 4°F of the specified cooling thermostat setting of 78°F and 5° or 6°F of the specified heating standard of 70°F. This temperature difference maybe more pronounced in "open" style 2-story houses due to the natural convection (rising) of warm air. The standard procedure for measuring the air temperature is to place the thermometer at the center of the room 5’0" above the floor level. The base heating design temperature criteria is 70° F indoors @ 22° F outdoor air temperature. In the cooling mode the ASHRAE design criteria is 75°F indoors @ 100° F outdoor air temperature. These standards, on which your system is sized, assume all windows are draped and during times of extreme outside air temperatures, those approaching the design conditions, the equipment will run continuously. This is not harmful to your air conditioner.

Basic air balance is the responsibility of the homeowner. If after seasonal balancing, and during the first year of occupancy, your HVAC system fails to meet the above warranted criteria, Tempo Mechanical will balance your airflow to meet these criteria without charge. Seasonal balancing adjustments will need to be made by the homeowner. An example of this would be the kitchen area or laundry room where maximum air flow is required in the cooling season to offset the heat generated by the appliances, and conversely, in the winter heating season the air flow required is minimal for the same reason. Doors must be left open to allow proper airflow. Today’s architectural designs that feature open two story ceilings adjacent to stairways often have the same problem due to the natural convection (rising) of the heated air. These air balance modifications should be made seasonally by the homeowner and are accomplished simply by adjusting the damper located behind the register in the affected area.

BUILDING SCIENCE COMMITTMENT SECTION #5A

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DESIGN AND IMPLEMENTATION PROCESS SECTION #6

All house plans are CAD generated regardless of original source.

Take-off
The take-off process is electronic and is initiated by the CAD drawing. Our in-house programming capability has provided a link that enables our financial software to read directly the electronic design drawing and automatically perform the take-off in seconds. All Field Superintendents have the ability to electronically change plans, in effect providing an "as built" drawing for a more accurate take-off as adjusted for actual field conditions. This helps control costs by minimizing wasted materials.

Estimating
The estimating process at Tempo Mechanical is fully automated. This automation avoids extension errors and assures the proper calculation of the actual costs involved in each job. It also allows for quick and accurate modification of pricing for both standard options and homeowner requested changes.

Both detailed and summary reports are available for verification of costs. We currently have an inventory of over 5,000 plans with the accompanying take-off.

Ordering

• Our AutoCAD Design process generates a Bill of Material for every distinct house plan.
• The builders issue a Purchase Order to confirm addresses and pricing for a house plan.
• Vendor Purchase Orders are generated from the plan Bill of Material.
• Purchase Orders to most vendors are electronically created to insure that the most recent revisions are reflected in the Purchase Order.
• Guaranteed consistency on all similar house plans.

Invoicing

• Contract pricing is confirmed from our customer purchase orders.
• Invoicing is customized to each customer’s specific requirements.
• Our construction schedule triggers our invoice system.
• Invoicing will always be consistent and current to help you manage your cash flow.

Scheduling

• Scheduling is monitored and tracked in a database.
• Customers are given a confirmation number for each service order .
• Inventory is on a "just in time" inventory system that is highly automated.
• HVAC rough and trims are scheduled with a four day lead time.
• HVAC start-ups are normally done within 24 hours.
• Red Tags and noncompliance issues are corrected within 24 hours.
• Our Customer Service Group will call you to confirm scheduling of noncompliance issues.
• We monitor the status of all houses on the schedule for projected start dates.
• Field Supervisors track your schedule and provide status feedback.
• Schedules are adjusted to meet your needs on a daily basis.

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BUSINESS DIRECTION SECTION #7

Information
Tempo Mechanical Services has always been a high volume Residential New Construction HVAC Contractor. Our roots date back to 1966 as being a part of the TDIndustries’ family. As an employee-owned company we purchased our Business Unit from our parent company in 1998. This strategic move allowed us to form a Service Department to focus on our home installations as life cycle customers.

Growth

We purchased the Business Unit from TDIndustries with 29 Partners. We are now over 90 Partners strong. Tempo Mechanical’s investment in technology and process improvement has us poised for significant growth over the next decade with focus and control toward customer satisfaction. We are always looking for improvement opportunities and control measurements. We are investigating new production methods that we believe will reduce our cycle time on the job and therefore reduce the entire new home construction cycle.

Cost Reduction

Tempo Mechanical has a strong focus on quality and improvement that will reduce our cost. These savings can be passed along to our customers through:

• Ease of information transfer
• Reduced cycle time in construction
• Ongoing innovations and process improvements
• Systematic design and scheduling
• Leveraged purchasing
• National Account Management for qualified builders
• Improved customer satisfaction

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ENVIRONMENTAL ISSUES SECTION #8

• The most significant issue facing HVAC Contractors is the EPA mandated phase out of the type of refrigerant currently being utilized in virtually all residential air conditioning products (R-22). This phase out is very similar to the one imposed on the auto industry in the late 80s and early 90s. The purpose of the phase out is to protect the earth’s ozone layer, which can be damaged by the chlorine found in today’s refrigerant. The depletion of the ozone layer and the resulting increased ultraviolet radiation exposure has been directly linked to increased incidents of several forms of cancer.
• The production level of R-22 refrigerant is frozen by law and as of 2000 the industry is using 100% of the permitted production. That allowable production level will be reduced by 35% in 2004. Spot shortages will most likely begin to appear next year. Unless the adoption of alternate refrigerants is expedited, R-22 shortages will be severe in 2004 and the price will most likely skyrocket as it did for automobile refrigerant. (The wholesale cost of automobile refrigerant, R-12, went from $30 for an 80# drum in 1986 to the current price of approximately $1,100.)
• All indications are that the replacement refrigerant for residential equipment will be R-410A. The advantage of this refrigerant is that the cooling capacities and ability to remove moisture from the air are equal to or greater than the refrigerant it replaces. This refrigerant does not harm the ozone layer and all major air conditioning manufacturers are now starting to produce equipment that utilizes the R-410A refrigerant. One manufacturer has just recently made available R-410A equipment that is priced competitively for the RNC market.
• This refrigerant is different from the R-22 type and must be handled differently. All Tempo service personnel have been trained and certified to work on R-410A equipment.

POINTS OF DIFFERENCE/CUSTOMER
SATISFACTION / CONTACT SECTION #9

Tempo Mechanical is not organized as typically expected of a large contracting entity. The items listed below show Tempo Mechanical’s clear separation from the expected.

Performance-Based Pay
Wherever practical, Tempo Mechanical Service, Inc. Partners are compensated on a performance based system. This allows the individual to achieve exceptional earning based on his or her individual effort. They are not limited by some artificial structure.

Our Installers and Technicians are rewarded for their production and quality.

• This reduces cycle time and punch calls per job
• Increases customer satisfaction
• Increases our overall capacity to perform
• Our Field Supervisors are also rewarded by job performance and customer satisfaction

Integrated Dispatch

• Tempo Mechanical has two distinct customer service groups:
• One to specialize in the builder as the customer
• One to specialize in the homeowner as the customer
• Both groups support each other for increased customer satisfaction

Training
Training is a year around effort at Tempo Mechanical Services, Inc. We believe that the major factor limiting the growth of the organization is our ability to find trained people to do the available work. Therefore, Tempo Mechanical has accepted the challenge of developing the skilled work force that is required. To this end, all Partners are challenged to complete 40 hours of structured training every year. Tempo also supports other general educational efforts of our Partners such as college tuition or outside technical training.

Commitment to Customer Satisfaction
Tempo Mechanical has recently established a Quality Assurance position within the RNC Business Unit. This individual will be in contact with new homeowners shortly after they close on their house to make sure they have a thorough understanding of their air conditioning and heating system.

We must satisfy our homeowners by:

• Showing up for appointments when scheduled
• Correcting any problems on the first trip
• Offering competitive maintenance and extended warranty programs

Satisfying our builder clients is important as well. Commitment to customer satisfaction requires our Partners to "Walk the Walk". Simple jargon is not enough.

We must satisfy our builder clients by performing to the following standards:

• Show up on time every time
• Complete the job the 1st time and not have to return
• Charge a competitive price

We are well aware that many of our builder clients receive incentives based on their customer satisfaction scores that homeowners provide after closing. We are also aware that our actions as the HVAC Contractor can greatly influence these scores. Our builder clients are surveyed quarterly for construction and warranty performance.

Below are the results of our latest survey and our 5-year trend line.

CONSTRUCTION & WARRANTY PERFORMANCE

Partner Empowerment

Partners of Tempo Mechanical are expected to make as many onsite decisions as possible and are trained to do so. Our Partners are not criticized or chastised for making wrong decisions, but encouraged to learn all facets of their profession so they can make confident, accurate judgments. This benefits our clients by assuring that work is not delayed by indecision on our part.