Variables That Influence an HVAC Project’s Cost

Everyone wants to make smart financial decisions. When it comes to HVAC, purchasing one or more HVAC units is a significant, long-term commitment. You want to choose the right type of unit and get the most out of your investment. Cost is a major factor, and there are quite a few variables that will affect the final cost of your project. Here are the top factors that influence HVAC project cost and how Motili can guide you:

Motili’s Background and Whom We Strive to Help

Motili is part of Daikin Group. Daikin is the largest HVAC manufacturer in the world. Motili is an integrated HVAC technology platform that offers turnkey HVAC services and equipment, nationwide. We offer HVAC maintenance, repairs, and installations as well as preventive maintenance programs. Through our technology solution, we provide HVAC management projects for single-family, multifamily, and commercial properties to help property managers and owners manage their HVAC and hot water systems. Our Mobile Asset Condition Index (MACI) provides insight into the age, condition, energy efficiency, and refrigerant type of the units on your properties to support data-driven decisions. 

Project Size and Complexity

Motili offers access to a network of over 2,000 contractors and 1,000 distribution centers across the US to create scalable HVAC solutions for property owners and operators of all shapes and sizes. We handle projects from ten units to tens of thousands of units, and our pricing varies significantly based on project size and scope.

We handle complex projects that have unique needs. For example, we work with projects that require permits, street closures, construction equipment, and removal and reinstallation of access panels or staircases. In addition to special requirements, add-ons like asset tagging and indoor air quality products such as UV lights, dehumidifiers, and air purifiers increase the cost and labor requirements for your project. The complexity of your project will impact your final cost. Depending on your project scope, the cost of a project could range from high tens of thousands to millions.

Material Availability

One of the most influential factors that affects pricing is material availability. For example, multiple shortages are occurring across the HVAC industry that began in 2020 and are predicted to continue. The microchip shortage is impacting contractors. Specific parts such as semiconductors, compressors, and motors are scare. Additionally, raw materials like copper, steel, aluminum, and plastic are limited. In May of 2021, copper prices were at an all-time high. All these factors increase the cost of a unit due to the lack of availability, and these factors are changing every day.

Labor Availability 

Labor is another significant factor. There is a nationwide labor shortage, and it is likely to continue for the foreseeable future. As the HVAC industry is advancing in technology, this requires a higher skill level for contractors to service these more advanced systems. To attract and retain skilled contractors, companies are paying more, which in return, affects the final cost of a project. Worker expectations have shifted. HVAC technicians are seeking employment where vacations and benefits are prioritized. Then, salaries and tool allowances are next on their list. Most contractors also expect a steady stream of work. These factors impact the availability of labor in the HVAC industry.

At Motili, we have nationwide coverage of in-network, independent contractors. As with many contractors, their labor availability varies, and their pricing varies by state as well, so these discrepancies across the nation impact price.

However, to ensure our customers always get a fair project quote, Motili has a dedicated internal bid desk and project management teams to monitor the quotes our contractors provide for every project. Motili’s simple, one-point contact solution saves customers time and headaches trying to figure out regional equipment and labor pricing. 

Other Advantages Motili Provides

Due to Motili’s direct relationship with one of the world’s largest HVAC manufacturers and the scale of most of Motili’s projects, customers receive favorable pricing on equipment compared to competitors, in-house techs, or facility managers.

As we offer a fully turn-key HVAC management solution, our customers benefit from a hands-off approach and find the convenience of using Motili’s single-point-of-contact HVAC solution to be a major competitive advantage.

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Send us just a little info and we will get back to you to walk you through the demo.