Ever wonder why heating, ventilation and cooling (HVAC) system repair or replacement rates often vary so much?
As the saying goes, the devil is in the details. Cost estimates can vary greatly depending on several factors, including the type of work required, labor costs and the quality of the new equipment. Just because a quote is expensive doesn’t automatically mean it’s being used. In fact, the cheapest may end up costing you the most, according to Scott Urquhart, chief sales and operations officer at ARS.
“There are things you can save money on in the beginning,” he said. “But the opportunities are the things that you will pay for later, in the life and performance of the program.”
To truly evaluate the different HVAC cost estimates and make the best choice for your needs, you’ll want to examine the detailed breakdowns and compare them on an item-by-item basis. The following are major components of HVAC repair or replacement that you should review before signing a service contract.
Equipment details
When looking at HVAC repair rates, remember that they should be for the same type of equipment. Steve Wade, senior director of operations and procurement at ARS/Rescue Rooter, says some estimates may only include the replacement of certain heating or cooling components, resulting in a lower estimate but potentially looking at other parts that need to be replaced.
“In some cases, you can see a company that cuts corners and will only replace the box — that’s the furnace box or the evaporator coil box — and leave the rest of the part to stand alone, as if it’s in good working order,” Wade said.
When you’re getting estimates for a new HVAC system, an apples-to-apples comparison becomes even more important, as there is a big difference in cost and efficiency between low-end and high-end units.
A basic HVAC unit, for example, that operates on only one speed and keeps turning on and off to maintain the temperature can cost at least $5,000 to replace, according to home services provider Angi. A high-efficiency, variable-speed system that continuously adjusts output can cost upwards of $20,000 but can reduce energy bills.
Load calculation
This calculation determines the correct size of HVAC system needed to keep your home comfortable. You may see it referred to as a Manual J load figure. Several factors go into determining how many BTUs (British thermal units) or tons are needed to heat and cool your home, including:
- The total square footage of the building, including ceiling height and floor plan
- Insulation – also known as R-value – in walls, floors, basements (the higher the R-value, the better insulated the home is)
- Numbering and energy efficiency ratings of doors and windows
- Climate and sun exposure
- Any air leaks that may be present
- The number of people living in the home and the number of electrical appliances that generate heat
Some contractors may determine what size HVAC unit you need simply by looking at the space or by relying on the square footage of the home. This type of calculation is less labor intensive and results in a lower cost estimate, but can often result in the installation of a very small or very large system on site. Either way, the result is an inefficient system that consumes a lot of energy and, in the case of a system smaller than necessary, experiences frequent crashes.
Pipes
Ducts and vents are the means that distribute fresh, clean air throughout your home (and remove stale air from it). Sometimes, during home renovations, an HVAC company will recommend repairing existing ductwork to ensure proper heating and cooling.
Improper air flow in the home, uneven temperatures or whistling sounds also often require ductwork to improve the performance of the HVAC unit. Alterations may also be necessary to repair damaged, collapsed or corroded pipes due to moisture. The cost of this depends on the scope of the work and can range from a few hundred dollars for a minor change to several thousand dollars for a major overhaul or repair.
Changing AC line sets
Line sets of copper tubes connect indoor and outdoor AC units; they carry a refrigerator that cools the home. The set also usually includes insulation, electrical cables so that the units can communicate with each other, connectors and wrapping to protect the set from external elements.
Line sets are usually replaced when a new unit is installed or damaged. But be careful: Some estimates can be limiting by not including replacements for repair work.
Electrical development
You may need a new electrical panel, especially if you own an older home and are installing a new HVAC unit. Older electrical panels provide 60- to 100-amp service, which means that’s the maximum amount of power your home can draw from the electrical grid at any given time. Newer HVAC systems typically require 220 amps.
A proper estimate for a new HVAC system will include an electrical load calculation to ensure your service panel is adequate. Although you may be running 220 amps on a 100-amp electrical panel, your HVAC unit will not work properly and cause an overload.
Permit fees
Anytime you install a new HVAC system or heat pump, repair ductwork, add new areas to the system or connect gas lines to heating appliances, your contractor will need to obtain a permit. Permit fees vary by location and type of work involved; they can range from less than $100 to $500 in most residential areas. Some companies will charge a flat rate, while others may offer an estimate based on the total cost of the job or the number and type of units installed.
Warranty
Your new HVAC unit will come with a manufacturer’s warranty that covers the cost of defective or broken parts within a certain period. Most manufacturers will provide a five-year warranty, although some may offer longer terms.
The company that installs your new unit will also provide you with a warranty that covers service fees and labor costs for inspections and repairs. Most employee warranties cover the first to two years after installation. Differences in warranties can lead to different cost estimates, which you should review before choosing a contractor.
Labor costs
Like permit fees, labor costs can also vary widely. Service costs can range from $100 to $250 an hour or more, depending on the complexity of the repair or installation, the location of the home and the type of system. The cost of the job can account for 50% or more of your estimate, so it’s important to compare the scope of work quoted.
As you can see, many things can affect an HVAC installation or repair estimate. Understanding these factors can help you differentiate between quotes and choose your best option.
