With the split system, the evaporator coil is connected to a remote condenser unit using refrigerant piping between an indoor and outdoor unit instead of ducting air directly from the outdoor unit. Indoor units with directional vents mount onto walls, suspended from ceilings, or fit into the ceiling. Other indoor units mount inside the ceiling cavity, so that short lengths of duct handle air from the indoor unit to vents or diffusers around the rooms.
Air conditioners can create a lot of water because they remove moisture from the air. To get rid of this, they have a [usually plastic] drain pipe that comes out of the side of the air handler. Over time, algae can block this pipe and, when it does, the AC won’t work. In fact, some condensate drains have a float switch that won’t let the AC run if water backs-up. Water can also puddle around the unit or flood the area. To deal with condensate problems, please see Air Conditioner Leaks Water, below.
As you can see, if we know what the contractor is actually paying for specific equipment, we know what their labor rates are, and we know what they bid the project for, then we can also use some basic algebra (or just let the program do it for us because we’re lazy) to figure out how much of a profit they are making off of us (you) at different bid prices:

Mitsubishi Electric is a world leader in air conditioning systems for residential, commercial and industrial use. Challenged to create air conditioning systems that provide exemplary performance in the wide-ranging climatic conditions found throughout Japan, our engineers develop amazingly sophisticated yet durable units and systems capable of constant use under virtually any natural climatic condition on earth.
An EER certifies the cooling efficiency of HVAC units. It's calculated by the rate of the cooling in British thermal units (Btus) per hour and divided by the rate of energy input in watts at a specific temperature. The calculation goes as BtuH/WATT at dry bulb (db) versus wet bulb (wb) temperatures. The optimal rating for a cooling unit is about 80db/67wb inside and 95db/75wb outside.

Outdoor Fan Motor -- The outdoor fan, also called the condenser fan, is exposed to external conditions. As such it is most prone to dust and debris and the extreme weather. In desert climates, the outdoor fan motor is subject to heat not only from normal operation but from the outside temperature as well. As it starts to fail, the fan may work fine in the cooler morning hours but stop by afternoon. This can shut down the entire system for hours. When they stop running completely, your air conditioner will no longer work. Running a faulty fan will lead to compressor failure, which is a very costly repair.

Because an air conditioner moves heat between the indoor coil and the outdoor coil, both must be kept clean. This means that, in addition to replacing the air filter at the evaporator coil, it is also necessary to regularly clean the condenser coil. Failure to keep the condenser clean will eventually result in harm to the compressor, because the condenser coil is responsible for discharging both the indoor heat (as picked up by the evaporator) and the heat generated by the electric motor driving the compressor.
After one company just took a cursory glance at our A/C and found nothing wrong, I called HVAC. I called them mostly based on Michael W's post on 8/10/14 where he told us the owner, Alberto, took his feedback and took it SERIOUSLY. That speaks VOLUMES to anyone who has been around long enough to know the characteristics of the serious players are and those who are the wannabes.

Asking how much an HVAC installation costs is kind of like asking, “how much does a new car cost?”  Well, are you buying a Porsche or a Honda? Is it a 911 or just a Boxster, and are you going to get the leather seats? Likewise, are you going to get a Carrier or a Goodman air conditioner? Does the ductwork need to be replaced? These are all questions that will affect your HVAC installation cost, so let’s take a closer look.
Wiring up the thermostat is usually pretty straightforward if an old one is being replaced. If a thermostat is being put in where one had never been before, that could involve running new wiring. The placement of the thermostat is also important so that its sensors can get an accurate reading of the temperature. A thermostat that is blocked by a bookcase or other large furniture will not get a good reading and will not perform efficiently.
It seems all the average costs for a complete heating and cooling system replacement I've found on websites are usually at least 1/4 less, mostly half lower, then quotes I've gotten from companies. The worst quote I got was from One Hour Heating & Air Conditioning (the company with the Mike Rowe commercials), for over $15,000! I finally settled on a Carrier dealer, for $10,700 & I'll get $950 of that back in energy co rebates eventually. The company I went with's basic system would have been around $8800 (the only one that sorta matched up with web avg cost). They did all the correct planning as far as I could see, not like One Hour, who just showed me a price guide for the same size units already in place. And they do all the rebate paperwork and submit it to the energy co, One Hour never even mentioned possible rebates! Plus Carrier gets above avg reviews. I would have greatly liked a price under 9 grand, but this company got me 0% APR financing, so at least nothing out of pocket. My advice is stay away from national chains, and shop around with local area companies. Of course, One Hour says local companies will fold before you need warranty service lol. For their cost, there should be a technician living in his work van outside my house hahaha.
If you are using existing ducting, it will have to be inspected. Proper ducting loses around 2% to 5% of your energy. Old, leaking ducts can lose 50% or more. A contractor will need to have the ducts inspected and replace any parts ahead of time. If you are changing the size of your HVAC system because of significant changes to your home, you might need to replace the ductwork regardless.
In addition to the information below, see these two articles for the general care and maintenance of your air conditioner: Preparing Your Air Conditioner for Summer and How to Replace Furnace & AC Filters. Most noteworthy, you should replace the filters at least twice a year, before the heating and cooling seasons. For information on furnace problems, please see Furnace Not Working.