How to Estimate HVAC Cost in Construction Project

HVAC systems are a pretty awesome innovation. How? These are machines working constantly to provide you with a comfortable environment inside your home. They provide us with clean air to breathe no matter what the weather is outside. Also, these machines help you save energy and money without sacrificing the comfort of your home. Isn’t that great? So, on the whole, it’s not just about heating and cooling—it’s about creating a cozy, eco-friendly space for everyone.

Many people don’t know how important HVAC systems are. They contribute to our indoor comfort by keeping our buildings cozy in winter and cool in summer. They remove pollutants from the air and provide controlled ventilation to our buildings. But do you know how costly they are? In this blog, we will discuss how to estimate HVAC cost and the factors influencing it. So that you can enjoy comfort all year long.

What Is an HVAC System?

HVAC is a system that helps control the temperature, humidity, and air quality in your buildings. It stands for Heating, Ventilation, and Air Conditioning systems. They can be operated by electricity, natural gas, oil, etc. They keep the temperature and air quality of our buildings comfortable 24*7 and 365 days. Let’s have a look at some important parts of the HVAC System.

Air Filters

Air filters are an important part of HVAC systems. They are made of different materials like polyester, high-efficiency particulate air (HEPA) filters, or fiberglass. These filters help us maintain healthy indoor air quality. They are designed to capture allergens, pollutants, and other harmful particles in the air to keep us healthy.

Ventilation Systems

Many buildings have tight seals with high insulation systems. They can trap pollutants impacting the air quality over there. Ventilation systems play a crucial role in such cases. They bring fresh air indoors while getting rid of harmful air pollutants. Thus, a constant flow of fresh air makes indoor spaces healthier and more comfortable to live in.

Humidity Control Devices

Maintaining the right humidity levels indoors is crucial for our comfort and health, and that’s where humidity control devices in HVAC systems come into play. They help strike the perfect balance, preventing issues like mold growth, dry skin, and respiratory problems. So, these gadgets ensure we feel cozy and breathe easily in our indoor spaces, making them pretty important, don’t you think?

HVAC Cost By The Type of System

There are different types of HVAC Systems available in the market. Let’s have a look at them and see their cost influence on your construction project.

Electric Furnace

Electric furnaces burn fuel to heat the air. Then, they use blowers to spread treated air throughout a  building’s ductwork. They are commonly in buildings that have backup heating systems or used in areas with milder temperatures. They use ductwork to provide air throughout the building. Hence, they are costly to install and even replace.

High Cost $12,900
Low Cost $6,000
Average Cost $9,500

Central HVAC systems

Their unit prices depend on many factors like house size, ductwork length, type, and brand.

High Cost $18,500
Low Cost $9,500
Average Cost $13,500

Split AC System

Split AC systems are made up of two main parts: an outdoor unit and an indoor unit. The outdoor unit has a condenser and compressor. The indoor unit has an evaporator coil and an air handler. For a comfortable environment, the Split AC System’s indoor unit draws in warm air, which then moves over the evaporator coil. The refrigerant within the coil cools the air, which is then circulated back into the home through ducts.

High Cost $13,000
Low Cost $6,100
Average Cost $9,600

Heat pump split AC system

They are similar to heat pumps but with an AC system.

High Cost $12,900
Low Cost $6,000
Average Cost $9,500

Mini Split Heat Pump

Do you wish for a ductless setup? If Yes, then a mini split heat pump is your go-to system. Its efficiency is equivalent to that of a heat pump. It has an outdoor unit that remains constant. The indoor unit has multiple air handlers placed in different zones of your home. The ductless feature reduces the cost from $10-$20 per foot but adding more zones will increase the cost of installation and materials.

High Cost $12,900
Low Cost $6,000
Average Cost $9,500

Boiler AC system

The basic function of a boiler is to send heated water or steam through radiators, baseboards, or pipes to warm up the building. The amount of BTUs( British Thermal Units) required in the building helps identify the size of the boiler and its cost. Generally, larger homes in colder climates require more BTUs, while smaller homes in warmer climates need fewer. Boilers use electricity, gas, oil, or propane to function.

High Cost $14,700
Low Cost $6,600
Average Cost $10,700

Additional Costs in Installing an HVAC system

There can be several additional costs while Installing an HVAC system can involve several additional costs, and you’ve mentioned three important ones: insulation, asbestos removal, and removal and disposal of the existing system. Let’s break down each one:


Adding insulation around your HVAC ducts can greatly improve efficiency. As a result, you can save money on your energy bills. An overhead of $0.50 – $2.00 per square foot and even more is charged to insulate an area. The type of insulation material for example., fiberglass or rock wool, and how difficult it is to insulate, impacts the overall price of insulation.

Asbestos Removal:

Asbestos is a mineral found in soil. If your home was built before the late 1970s, there’s a possibility that your HVAC system contains asbestos insulation. Because asbestos is a dangerous substance, it must be removed by a licensed professional before any work can be done on the HVAC system. Clearing asbestos can cost $2,000 or more for a 1,500-square-foot residence. This cost can vary depending on factors like the amount of asbestos present, accessibility of the asbestos, and many more.

Removal and Disposal Costs:

Removing your existing HVAC system and disposing of the materials properly is another cost to consider. It can cost you around $500 – $2,000. This cost can vary depending on the size and complexity of your existing system and also on the disposal fees in your area.

Factors affecting HVAC cost

House Size

Large houses require larger and more complex systems to properly heat or cool the space. This means more materials and possibly more installations, which can increase the overall cost. On the other hand, smaller houses may require smaller, less expensive HVAC systems, resulting in lower installation costs. So, the size of your house directly impacts the HVAC system needed, which in turn affects the cost of installation.

The Ductwork

The HVAC system requires ductwork around the building. While installing a new HVAC system, a new duct system is also required which can cost a lot. The cost of the ductwork depends on various factors like the material used, how complex the design is, and the length of the ducts. Remember to get a ductwork system that compliments your HVAC equipment.

Brand of HVAC Unit

The brand of the HVAC system you choose for installation plays an important role in determining the overall cost. Thus, It is necessary to carefully consider your needs and requirements while selecting the brand. This decision impacts both the performance and cost-effectiveness of the system.

SEER Value

The word SEER means ‘Seasonal Energy Efficiency Ratio’. It highlights how efficiently your HVAC system is operating. The higher the SEER value, the lower the efficiency of the system. It is recommended to get an HVAC system installed with no more than a 16 SEER ratio.

Project Difficulty

It is also one of the factors that can impact the installation cost of a new HVAC system. If the project has a high difficulty level, for example, the building has attics, hard-to-go areas for duct installation, etc the installation cost will also increase.


The cost of labor highly depends on factors like how skilled the installers are, the demand for HVAC installers, and the local cost of living. In general, the labor cost is attributed to be between $500 and $2,500 of the total cost of a new HVAC system.


The permit cost is added to your overall cost of installing an HVAC system. Installers take care of all the paperwork and building permits required for installation and they add it to the end cost.

How to save money on a new HVAC system

Is it that time of the year when you have to replace an HVAC system? Are you worried about the expense? The question “ How to estimate HVAC cost and reduce it?”  is on your mind. You are visiting various markets to find the best quote yet of no help. Fear not! In this blog, we will discuss ways to save money while purchasing a new HVAC system. It will save thousands of dollars and reduce your financial burden. Just follow the following simple steps, and you’ll be on your way to a more budget-friendly solution.

See if Your Area Offers Incentives

Keep an eye on your state or local utility shops for deals and incentives. Many companies provide rebates for swapping out old HVAC systems. Don’t hesitate! It’s a simple and foolproof way to reduce the price while purchasing your new HVAC system. If you are a member, don’t forget to check with warehouse clubs like Costco. They might offer competitive deals or store rebate cards

Look for Manufacturer Rebates

It’s always best to take some time out and find the latest rebate deals offered by leading HVAC manufacturers. Remember, these rebates can be combined with incentives available at the local or state level. But there is a catch: generally, these rebates are associated with higher-end models. Purchase an HVAC  System depending on your specific HVAC requirements and not according to the rebates offered.

Explore Off-Peak Deals

HVAC Systems are replaced during the fall and spring seasons. During this time of the year, you will spot some great discount deals. But let me share a secret with you. Do you know you can score even better discounts during the off-season? It is the time when contractors are looking for more work. If possible, hold off on your installation for a month. And if nothing catches your eye, don’t hesitate to inquire about an off-season discount.

Do A Price Comparison

HVAC prices differ from one company to another, so it’s wise to gather several quotes before making your decision. Usually, three quotes will be best. Keep in mind that scheduling appointments for quotes can take time, sometimes even a few weeks. But if you’re not in urgent need of a replacement then be patient. It’s best to start the quote-gathering process two months before you’re ready to have the new system installed.


HVAC systems are a necessity. They help us maintain a comfortable indoor environment year-round. They control temperature, humidity, and air quality to provide us with clean air. However, installing or replacing an HVAC system can be costly. The question is ‘How to Estimate HVAC Cost in a Construction Project?’ Various factors like house size, ductwork, brand, SEER value, project difficulty, labor, and permits impact. To save money, individuals can explore incentives, manufacturer rebates, off-peak deals, and price comparisons.

For accurate cost estimation and professional guidance on installing HVAC systems, consider using HVAC Estimating Services. Such companies provide detailed analysis and customized solutions to help you make informed decisions.

Frequently Asked Question


The lifespan of an HVAC system depends on factors such as the quality of the system, how well it’s maintained, and how often it’s used. Keeping all these factors in mind HVAC systems should be replaced after 10 to 15 years.

A long-lasting HVAC system is built with high-quality materials. It is properly installed and well-maintained. Often HVAC systems from brands are more reliable and have a longer lifespan. Also, regular maintenance can help prolong the life of your HVAC system.

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