Selecting an Air Conditioning Company

There are hundreds of air conditioning companies serving south Louisiana. It is important to select a company that will give you a professional installation, meet its contractual obligations and protect you from financial losses as a result of your purchase.

A reputable dealer will take the time to understand your needs, invest the time that it takes to assure you that your system is properly sized and meets your comfort and cost objectives, provide you with brochures describing the equipment proposed, and provide a written proposal detailing all costs involved in the purchase. Consider the following items when choosing a company:

How long has the Company been in business?

Does the Company have a license in the area in which you live?

Can the Company provide references of recent installations?
Does the Company have a strong service department? Extended hours? Weekends?
Does the Company have liability insurance to protect you against lawsuits and damage losses during the installation?
Does the Company offer financing?

Unlicensed Contractors by LegalMatch.com

An unlicensed contractor is someone who does repairs or makes improvements to your home without the appropriate license to do business in your state.  Typically, unlicensed contractors work for less than licensed contractors because they avoid worker's compensation and liability insurance requirements.

What are the Risks of Hiring an Unlicensed Contractor?

While an unlicensed contractor may provide you with a low price, there are many risks involved in dealing with one: 

• Unlicensed contractors cannot get permits, so their work is not inspected and may not be up to local code.
• If an unlicensed contractor improperly installs an appliance, such as a water heater that explodes, your insurance will not cover it.
• If an unlicensed contractor installs an appliance, such as a water heater, dishwasher, and so on, the product warranty may be voided.

How Do I Tell if my Contractor is Unlicensed?

There are some signs that may suggest your contractor is unlicensed.  They include:

• The contractor asks for a large down payment before work begins and makes multiple requests for money in the early phases of construction.
• The contractor says permits and inspections are not required or he asks you to obtain the permit.
• The contractor gives a verbal contract only.  He is not willing to put terms in writing.
• The contractor does not have proof of insurance.
• The contractor only works weekends or after-hours.
• The contractor asks you to make checks payable to a person or "cash" rather than a company.
• The contractor's advertisements, vehicles, cards, and so on do not display a license number.

Protect yourself by asking about a contractor's license before hiring him.  Ask to see the license and his worker's compensation and liability insurance.

What Happens if I Hire an Unlicensed Contractor and There is a Problem?

Problems may occur during your construction project.  Work may be low quality, the contractor may abandon the job, or you may refuse to pay the contractor.  States handle such disputes with unlicensed contractors differently:

• Some states follow a strict rule that does not allow an unlicensed contractor to recover on the contract.  In those cases, contracts with unlicensed contractors are illegal and unenforceable by the contractor.
• Other states follow a rule of substantial compliance.  If the contractor follows most of the rules a licensed contractor must follow, he can enforce the contract.  This is because the public was not harmed by the violation as the contractor complied with the appropriate standards.  These states may allow restitution to unlicensed contractors who are not paid if a licensed contractor supervised their work, the reason they have no license is minor, such as forgetting to renew, or the contractor posted a performance bond.
• Some states say that if you knowingly enter into a contract with an unlicensed contractor, you are not allowed to use the fact that the contractor is unlicensed as a defense for non-payment.  Note that an unlicensed contractor can still file suit for fraud and deceit.

What is a "State of the Art" System?

People ask us, "If I had unlimited funds and wanted the best system on the market, what would it be?" Our response is always the same. Your new system would consist of a Trane system with the following:

The highest efficiency condenser or heat pump the manufacturer offers. Usually these systems offer two speeds or stages. These units will save substantially on your utility bills and have the best warranties. They are built better and have fewer breakdowns costing you less money over the life of the system.

A heater or air handler with variable speed blower. Variable speed blowers offer several advantages. They have an ICM motor which uses 1/10 the electricity of a regular blower. They help compensate for bad duct design or dirty filters and provide better air distribution. They will allow you to use a two stage condenser which will provide lower operating costs. They further reduce humidity in the home making it more comfortable.

A zoning system. Zoning can be retrofitted on most existing systems and allows the home to be divided into several cooling and heating zones, each with its own thermostat, allowing you to cool or heat each zone according to your wishes. Zoning reduces your electrical costs by up to 30%, effectively adding over 2 SEER to the rating of your system, allowing efficiency ratings over 21 SEER. It also significantly reduces humidity in the home adding to your comfort.

Electronic Air Cleaner and Ultra-Violet Air Purifier. These units trap or kill odors, germs and allergens. You spend 90% of your time indoors and your inside air is typically more polluted and contaminated than outside air. Invest the extra money and improve your health.

Programmable (set-back) Thermostat. Don't turn a system off...simply set it up 4-5 degrees when you are not in the area. Combined with zoning, programmable thermostats can dramatically reduce your utility bills.

I Can't Affort It!

We realize that a most people think they can't afford to have all the bells and whistles of the "perfect" air conditioning and heating system. But you're going to pay the same amount anyway...to the electric company, the gas company, the doctor... why not have the additional comfort to go with the expense. Why is a lower priced, lower quality air conditioning system going to cost the same anyway?

Increased Utility Bills. A 19 SEER, variable speed system with zoning can reduce your average electric bill by up to 50%. If your utility bill averages $250 a month you can save up to $22,500 over the 15 year life of the system.

Increased Repair Bills. An air conditioning and heating system usually costs 30% of its initial cost in repairs during the life of the system. This can amount to thousands of dollars. High quality systems reduce this amount substantially and they last up to 40% longer than an average quality system.

Family Health. You figure it out. If proper filtration and clean air reduce germs and allergens they will save you money on healthcare for colds and allergies and improve your quality of life.

You Can't Afford Not To!

The point is, you can invest in a high quality heating and air conditioning system or you can pay much more in higher utility bills, repair bills and doctor bills over the 15 year life of the average system.

Selecting a Brand.

There are many manufacturers in the market that provide air conditioning and heating products to the consumer. Each brand offers different features, quality and warranties that affect the price of the system. Most brands have several models that differ in quality, efficiency and price. Manufacturers fall into categories that range from economy (low price, moderate quality) to premium (high price, high quality).

The following table is the opinion of Surgi's Heating and Air Conditioning of the various systems available in our market:

Highest Overall Quality:  Trane, Carrier, Lennox

Mid-Level Quality: York, Heil, Comfortmaker, Rheem, Bryant
Nordyne Products(Westinghouse, Maytag, Fridgidaire, Tappan)

Low-Level Quality:  Goodman Products (GMC, Janitrol, Goodman), Luxaire, Coleman, Armstrong
Nordyne Products(Philco, Gibson)

It is typical for a dealer to tell a prospective client that their lower qualitybrand is just as good as the more well-known brands.  They will also say that the components are all the same regardless of brand.  Most of these claims are false. 

Major manufacturers are more selective in recruiting and training dealers.  They have local technical support and are dedicated to 100% customer satisfaction.  This is not true with all brands.

Types of Systems

There are five basic types of central air conditioning systems available:

1)  Air Conditioner and Furnace - this system contains an air conditioner, a heater and a cooling coil.

2)  Heat Pump and Air Handler - A heat pump is basically an air conditioner that reverses operation to produce heat in winter. Most heat pumps have supplemental electric heat for operation when outside temperatures are below 40 degrees.

3)  Air Conditioner and Air Handler - an air handler is a cooling coil, an electric heat element and a blower fan. Expensive to operate in cooler climates, this configuration is frequently used in the New Orleans area.

4)  Packaged Air Conditioning System -

  

This system has the condenser, evaporator coil, heater and blower in a single package located outside the home.  Ducts run inside the house from this remote location.

5)  Geothermal or Water Source Heat Pump -

This system uses the constant temperature of the earth or underground water to heat and cool the home.  Instead of an outside condenser that uses a fan to cool refrigerant, a geothermal unit uses water piped inside to transfer heat.

System Sizing

Systems are sized by considering home size, foundation, building materials, insulation and weather stripping, attic ventilation, and other factors. This sizing is called a heat-loss/heat-gain analysis. Some dealers call this a "Manual J" calculation. Surgi's offers this service free to potential buyers and existing customers.

 Proper sizing is important to you because over-sized and under-sized systems can reduce your comfort and increase your utility bill. Oversized systems can cool or heat your home too quickly. A system that is too large will drop the temperature before it can adequately remove sufficient moisture from the air - causing your home to feel warm. Undersized systems will not be able to achieve the desired temperature on extremely hot or cold days.

System Efficiency

Air Conditioning units are rated based on energy efficiency. This rating is called a SEER or Seasonal Energy Efficiency Rating. A SEER relates to the amount of electricity used in cooling. A SEER rating is like miles per gallon in an automobile. It is not related to a brand. That is, each SEER represents the number of BTU's of cooling per watt of electricity used. All 13 SEER rated units produce 13 BTU's of cooling per watt regardless of the brand of the unit.

Today's units have a minimum SEER rating of 13. You can also purchase units rated 14 to 23 SEER. The higher the SEER rating, the more expensive the system and the lower the operating costs. Surgi's ENERGY SAVINGS CALCULATOR will help you determine the savings of various systems to determine which efficiency rating is best for you.

Warranties

Warranties can provide a significant value to the homeowner. It is important that you understand the different types of warranties available and what they mean in terms of value.  In 2010, most manufacturers changed the way warranties are honored.  Most systems now come with a minimal warranty unless the system is registered with the manufacturer within 60 days of installation.   Once registered, the system has the advertised warranty.

          Basic Manufacturer's Warranties

Registered Warranties

Extended Manufacturer's Warranties

Labor Warranties

Dealer Parts Warranties

Satisfaction Guarantee - Surgi's offers a 12 month, no questions asked, satisfaction guarantee on all high efficiency systems.

- Some dealers offer extended parts and labor warranties that are not backed by the factory. These warranties cover parts and/or labor for an extended period of time but are only honored by the dealer who sold the system. - When you purchase a system, the dealer provides a labor warranty for a period of time (usually one year). Labor warranties cover the labor cost for a repair and are only honored by the dealer who installed the system. Surgi's offers 2 years labor warranties on all high efficiency systems. - Dealers (and Homeowners) may purchase extended warranties from the manufacturer that extend the coverage of the basic warranty. Some dealers provide these extended warranties as a standard part of their purchase price. These warranties may or may not include labor in addition to parts. Extended manufacturer's warranties are honored by all reputable air conditioning and heating companies regardless of who installed your system. - All manufacturers include warranties as part of the purchase price of the system. These warranties are for the equipment only and may vary from manufacturer to manufacturer. The most common warranties are 5 years on all parts, 5 or 10 years on compressors and 20 years on heat exchangers. Be sure and check with your dealer for the specific brand being quoted. Manufacturer's warranties are honored by all reputable air conditioning and heating companies regardless of who installed your system.

Comparing Cost

It is not easy to compare air conditioning proposals. Some things you should be aware of include:

Do the brands being compared represent the same quality?

(see Brand Value Scale)

How do the various dealers compare? (see selecting a dealer)

Is the SEER rating and tonnage the same for similar brands being proposed?
Are the warranties the same?
Does the installation cost cover the same items? (see Installation Checklist)
Does the price include dismantling and hauling away old equipment?

Buyer Beware!

The following is a list of misleading business practices that can be avoided by the careful selection of an air conditioning and heating system dealer:

 1. The dealer sells equipment without extended warranties as a means of presenting a lower price.

If you do not wish extended warranties, ask all dealers to strip this cost from their proposals and re-bid.

2. The dealer adds a tax line as a way of adding as much as 9% additional cost to a system.

Air conditioning and heating dealers in Louisiana pay sales tax at wholesale and are prohibited by law from charging tax on sales to you, the consumer. If you have a bid that includes sales tax you should ask that this amount be removed and the proposal resubmitted. Other states vary, ask your dealer.

3. The dealer does not provide warranty service after the sale.

Factory equipment and parts warranties do not cover labor unless specifically stated in the contract. Therefore it is the dealers responsibility to honor labor warranties at no charge to you. If the company you are dealing with goes out of business or refuses service after the sale, you will be required to pay for labor to install warranty parts. This labor can amount to 50% of the total charge.

4. The dealer "in-boards" warranties.

Some dealers offer multi-year or lifetime warranties as a sales feature that are not factory warranties. This means that the warranties will only be honored by the dealer that sold the equipment. Should your dealer go out of business or refuse to honor these warranties you will face the cost of all parts and labor associated with the non-factory portion of the extended warranty.

5. The dealer mismatches the system with a "name brand" condenser outside and a generic brand heater and coil inside.

In order to make the price of a system more competitive, some dealers will match a premium ("name brand") condenser with a generic heater and coil. In addition to having a low quality heater and coil with a shorter expected useful life a mismatched system can invalidate some manufacturer's warrantees.

6. The dealer does not carry liability insurance.

If a dealer does not carry liability insurance the homeowner may become liable for any accidents and injuries to employees of the dealer and the homeowners and their families during the installation or damage to their homes. Some dealers forego the significant cost of this insurance as a way of keeping prices lower, passing this risk to you.

7. The dealer agrees to run a new electrical line or new gas line to the system.

In order to run new gas or electrical service to your system, your dealer is required by the local regulations to have a gas and electrical license. These licenses protect you, the consumer, by assuring that your dealer is competent to safely install these items. If you have unlicensed work done on your property, it may invalidate any insurance claims you may have as well as provide unsafe conditions within your home.

If your dealer cannot show you licenses for gas and electrical, ask him for the names of licensed plumbers and electricians that you can contact to do this portion of the job.

8. The manufacturer/dealer over sizes the coil to obtain a higher efficiency rating.


Sometimes, in order to compete with more efficient units, a manufacturer will try to squeeze additional SEER by over sizing the coil of the system. For example, a 3 Ton, 13 SEER condenser is matched with a 5 Ton coil to achieve a 14 SEER efficiency. When this occurs it impairs moisture removal capability (in many instances by as much as 50%) thereby lessening your comfort. Make sure your coil is the proper size for your installation.

All legitimately matched systems are rated with specific efficiency by the Air Conditioning and Refrigeration Institute (ARI).  If you have any concerns regarding the system proposed, ask for the dealer to give you the ARI Certificate for the system you are purchasing.