Those of you who read our posts regularly know that we built our reputation as a U.S. Veteran-Owned business that prides ourselves on giving people straight, honest answers to their questions...and there’s no question that makes people cringe more than asking, what does a new HVAC installation cost? Oddly enough, most contractors keep their air conditioning installation cost a closely guarded secret, as if the knowledge of how much it should cost will somehow change your decision when you have to buy a new AC. What I will tell you, is that the fair price of an HVAC installation will vary greatly based on the type of heating and air conditioning system installed, as well as the options needed or desired (Ductwork included? Zoning system?). In this article, we’ll discuss the five system features that affect HVAC installation cost, fair price ranges you can expect to pay for your new system, we will then perform an example calculation of how you can calculate a fair price, and finally, what you can do to keep from getting ripped off on your new HVAC installation price.
The letters in HVAC stand for heating, ventilation and air conditioning. An HVAC system enables you to regulate your home or building’s internal temperature (thermal control) for comfortable living and working. You can bring heat levels down in the summer and up in the winter, keeping your home or office livable year-round. HVAC systems can also help with humidity levels and regulate indoor air quality in a home or office. There are many types of HVAC systems and technologies available.

The number of years an HVAC system lasts depend on the type and brand of components that make up your system. The lifespan of an air conditioner averages between 15 and 20 years. The life expectancy of a tankless water heater is approximately 20 years, while a storage water heater is closer to 10-15 years. Ducts may need replacing within 10-15 years. Your equipment will have a longer life if you have regular tuneups and maintenance to keep everything in good working order. If you’re having repair problems and your HVAC system is over 10 years old, it’s a good time to consider the costs and benefits of repairing vs. replacing. Energystar.gov provides the following tips to help you decide whether to repair or replace:
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.
If the AC doesn’t turn off, it may be time to clean the condensing unit. Dirty condenser coils won’t give off heat efficiently and will keep the unit running.  Another possibility: The contacts on the outdoor run relay may have welded together—something that can happen over time because of frequent electrical arcing at the relay. Before checking the run relay, turn off the power to the furnace and the condensing unit. Next, disassemble the relay and pry apart the contacts. This should do the trick until you buy a replacement—which you should do soon.

You can install the greatest HVAC system ever built, but if your house is not insulated well, it's only going to end up costing you more money. Older homes may have fiberglass insulation that has broken down due to pests, moisture, or improper installation. Spray foam insulation can be damaged by careless repair or modification work or can be improperly installed. If your insulation in compromised, your attempts to save money and be comfortable will be in vain.
The Chartered Institution of Building Services Engineers is a body that covers the essential Service (systems architecture) that allow buildings to operate. It includes the electrotechnical, heating, ventilating, air conditioning, refrigeration and plumbing industries. To train as a building services engineer, the academic requirements are GCSEs (A-C) / Standard Grades (1-3) in Maths and Science, which are important in measurements, planning and theory. Employers will often want a degree in a branch of engineering, such as building environment engineering, electrical engineering or mechanical engineering. To become a full member of CIBSE, and so also to be registered by the Engineering Council UK as a chartered engineer, engineers must also attain an Honours Degree and a master's degree in a relevant engineering subject.
You've probably noticed many appliances boasting an Energy Star Certification. What this means is that manufacturer voluntarily built the product to help reduce greenhouse gases and meet non-regulatory guidelines offered by the Environmental Protection Agency. To earn an Energy Star rating, a product or system must be tested by a third party that has been recognized by the EPA for meeting their testing qualifications.

This company deserves more than five stars. They didn't just replace my heater and air conditioner, they built me a new system for my house. Going above and beyond is a understatement. Steve's staff were 2 of the nicest workers I've come across in a long time. Friendly, knowledgeable, and very clean. Truly a top rated company. Thanks Steve.   Great job.
At Airco Heating and Air Conditioning, we’re proud of our years of service to the Van Buren area and look forward to helping you with your air conditioning and heating needs. We’re pleased to serve both residential and commercial customers; our team is prepared to help you with the sales, service, and installation of the comfort system that is ideal for your home or business. And be sure to ask Airco Heating and Air Conditioning for a free estimate. Whether it’s a new installation or routine service, our factory-trained technicians provide the expertise your comfort depends on. And at Airco Heating and Air Conditioning, we repair all makes and models.
Within the construction sector, it is the job of the building services engineer to design and oversee the installation and maintenance of the essential services such as gas, electricity, water, heating and lighting, as well as many others. These all help to make buildings comfortable and healthy places to live and work in. Building Services is part of a sector that has over 51,000 businesses and employs represents 2%-3% of the GDP.
Be careful of dishonest HVAC contractors. There’s no magical formula to see if an HVAC contractor is scamming you, unfortunately, but remember that they typically do this in one of two ways: first, they are charging grossly low prices (far below everyone else), or second, they aren’t including what everyone else is. In the first situation, they will charge you change fees, other hidden fees, or they stole the equipment and are passing themselves off as legitimate contractors (very common in California these days). In the second situation, they are charging you a very fair price, but aren’t including what the other contractors are (i.e. charging $10,500 for the installation which is fair, but not including the ductwork which is a scam unless there is some other, complex stuff going on there).
They work less jobs, thus increasing profits – think about it…if they got only half of the jobs, then they only pay half of the money required to pay employees, expenses, etc., but still have the same amount of net profit. In fact, if you do the math, they actually make more profit that their competitors do…twice as much, once you factor in their savings form only doing half of the jobs at the same amount of profit (Total Revenue – (half the normal expenses) = twice the profit). In other words, they save money by doing half of the jobs as others, for the same profit, thus increasing their overall profits.
Furnace Circuit Board -- The furnace circuit board controls a variety of functions. It not only handles the regular operation of the furnace, it also monitors the furnace's various safety circuits. Over time, vibrations from the furnace can weaken solder point and cause them to separate. Dirt and debris can cause short-circuits that damage the board. Failure of the circuit board can cause a variety of effects ranging from the fan not turning on to the complete shutdown of the furnace.
The HVAC industry is a worldwide enterprise, with roles including operation and maintenance, system design and construction, equipment manufacturing and sales, and in education and research. The HVAC industry was historically regulated by the manufacturers of HVAC equipment, but regulating and standards organizations such as HARDI, ASHRAE, SMACNA, ACCA, Uniform Mechanical Code, International Mechanical Code, and AMCA have been established to support the industry and encourage high standards and achievement.
But Tim, doesn’t this mean that a less-than-honest air conditioning company can just charge what he wants and say that it’s a difficult job? No. You see, dishonest contractors, typically, aren’t the brightest people (I figure if you’re still reading this, you’re warming up to me so I’m taking off the training-wheels). They aren’t smart enough to take difficulty into account, and will probably get confused if you ask them about it. They will tell you things like, “that’s how much the unit costs,” or “California has a new law that magically adds $5,000 to the price.”  Trust me, follow your gut, and you’ll be able to tell who the honest contractors are...or just use one of our ASM-approved contractors.
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.
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