HVAC quote too low?

Question

I'm renovating a 1970s 1600 sq foot rambler that needs all new duct work in crawl space and a 3 ton package unit.  Quotes were $12,000, $8,500 and $5,300.  I know and trust the companies on the first two quotes.  The $5,300 quote is a guy refered by my floor and paint contractor.

The variables I think I need to consider are:

1) use of metal vs flex duct

2) type of unit installed and warranty

3) will permits be pulled / work done by licensed professional

I want to save money but don't want to create headaches. If I can save money On the HVAC, I will be able to invest more in renovating the kitchen.  Any thoughts?

Account Closed · Answer

Arguably, in my opinion, you failed to list the most important variable to consider, but stated it previously... "I know and trust the companies".

On another note, with metal duct, what gauge of metal have they included; are they using long turn fittings with turning vanes; are they using tape, mastic or Aeroseal on the joints; what is the R-value of the insulation (on metal or the flex); have they performed a Manual J and Manual D; have they included dedicated returns to each room or just one central one?

Darrell Shepherd · Answer

It'll vary a great deal by area and equipment, but $5,300 is about what I'd pay for 3.5 tons with runs if they aren't hard to get to.  Just paid $5,200 for a 4 ton, but only had to do the top floor returns.  My GC took a few hundy of that I'm sure.

$8500 seems high to me, but is probably in line with what homeowner would pay calling off some sort of advertising.

I'd make fun of the guy that tried $12k.

John Vietmeyer · Answer

I'm leaning toward rolling the dice and going with the $5,300.  Spoke with the guy who will be doing the work himself.  He has a license and will be pulling permits.  Main run will be metal with flex to the registers.

He said the unit he would be installing is a Franklin with 10 year parts warranty.  I've never heard of Franklin, but he said it was made by York.  Is that right?

Patrick L. · Answer

Definitely compare what brand of equipment each is using, a Goodman is going to be a lot cheaper than something like Carrier but will most likely give you a lot more trouble.    I would have it done with a permit for your protection.  Material cost is probably going to be around $4k.

Charles Terrizzi · Answer

In Florida, every duct under the house sweats. We install flex and ductboard systems, insulated metal sweats worse than these materials.

The low bid is a little low, sounds like someone is desperate for work, and will likely cut corners.

Asking for labor and materials breakdown is useless. No one is going to bother calculating that for you, so you are asking them to fabricate some kind of answer.

Referrals mean everything, time in business, and who is actually going to do the work? Is it the craftsmen who is licensed, or is it his little brother? $8500 is actually a little high for our area, using flex and ductboard. If it is hung properly, it will last just as long as anything...metal has to be externally insulated too.

Jeremy Pace · Answer

@John Vietmeyer

Are the bids broken out to show materials/parts and labor?

Do not, do not, do not allowed someone who is not a licensed professional to install the furnace, it will invalidate the warranty.

The warranty should be able the same from every manufacturer, so you're pretty much even there.

I wouldn't necessarily recommend flex duct, it is cheaper, but you can end up with integrity issues, even in the short run.

My best suggestion is to find an HVAC supplier, and check to see what the prices are for furnaces ... this will absolutely open your eyes as far as material costs are concerned.  The cost difference between a 40k BTU furnace and a 110k BTU furnace is WAYYYYYYYY less than most contractors will lead you to believe.

David S. · Answer

Depending on the brand name of equipment, you may have parts-only costs of about $2000 for a bare bones unit and ducts to $4000+.

I would infer as to the equipment brand name and costs.  But it looks like you have that one covered.

Also, you can check references, Angie's List, and the BBB to see if any of the companies have issues.  Each company should be able to provide 3 references.

I have seen huge disparities in quote price.  The small start-ups, mom and pops,  and part timers will give the best price.  Some big box franchises, having to pay large franchise fees, will be by far the highest in cost.  200 to 300 percent difference in prices is normal.

Some small companies just don't have the overhead costs that larger ones have.  No need for a manager since many are self-managed.  Also, they may not have to provide as many benefits if they have no employees, assuming they are an owner/operator. No need for a wharehouse since they don't need to store inventory, etc.

HVAC quote too low?

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