AC installation contract checklist (Texas)

Why the contract matters more than the price

An AC replacement is a few thousand dollars of equipment and a day or two of labor, most of it in an attic you will not inspect. The contract is the only record of what you were promised. If the installed unit is a different model, the drain is not replaced, or the permit never gets pulled, the paper is what you point to.

Two quotes at the same price can describe very different jobs. One includes a new coil, line set, pad, drain and permit; the other assumes you keep the old ones. A good contract makes those differences visible before you sign, not after the invoice arrives.

This checklist covers what Texas rules require on the paperwork, what every contract should spell out, and the clauses worth questioning. It is general information, not legal advice. For a large or unusual job, an attorney can review the contract. Comparing AC installation quotes covers the step before this one.

What Texas rules require on the paperwork

The licensee’s number must appear on all advertising, proposals and invoices, an invoice is required for all ACR work, and proposals, invoices and written contracts must carry the notice “Regulated by The Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, 1-800-803-9202, 512-463-6599; www.tdlr.texas.gov”.

The Texas Department of Licensing and Regulation (TDLR) licenses air conditioning and refrigeration (ACR) contractors, and ACR companies must employ a licensed ACR contractor at each permanent location. In practice that means the license number on the proposal belongs to a person employed by the company, and you can look it up. The TDLR license search takes a license type, license number, name (Last, First, or the business name), city, county or ZIP. It covers active licenses only, so "no result" can mean a license has expired.

Texas licenses HVAC contractors through TDLR. Class A has no size limit; Class B covers cooling systems of 25 tons and under. Each license carries one endorsement; residential work is the Environmental Air endorsement. Contractors must hold liability insurance and renew with continuing education every year. The step-by-step lookup is on how to verify a Texas HVAC contractor.

The checklist: 14 items to find before you sign

Go through the contract line by line with this list. If an item is missing, ask for it in writing; a verbal answer is hard to rely on later.

1. Company name, address and TDLR license number, plus the TDLR consumer notice.
2. Your name and the property address, matching the deed if the home is a homestead (see below).
3. Model numbers for the outdoor unit, indoor coil and air handler or furnace, not only the brand.
4. The AHRI match: a certificate or reference number showing the components are rated together.
5. Size and efficiency: tons, SEER2, and HSPF2 for a heat pump.
6. Refrigerant: R-410A or an A2L refrigerant such as R-454B or R-32.
7. Scope: coil, line set, drain line and pan, pad, disconnect and wiring, thermostat, duct work, removal and disposal of the old equipment.
8. Sizing basis: whether a load calculation was done, and a copy if so.
9. Permit: who pulls it, whether the fee is included, and who schedules the inspection.
10. Warranties: the labor term in writing, and who registers the equipment and by when.
11. Price and taxes: total, and how sales tax is handled.
12. Payment schedule: deposit, any staged payments, and when the balance is due.
13. Dates: expected start and duration, and how long cooling will be off.
14. Change orders: how extra work is priced and approved, in writing, before it is done.

Equipment: what “a 3-ton 15 SEER2 system” leaves out

Brand and tonnage are not enough. The same brand sells several product lines at different efficiency levels and price points, and the outdoor unit has to be paired with a compatible coil to reach its rating. Model numbers pin the exact equipment; the AHRI reference confirms the pairing is rated.

Texas is in the DOE Southeast region. Since 1 January 2023 a split-system central AC under 45,000 BTU (about 3.75 tons) must be at least 14.3 SEER2 on the date it is installed; larger systems need 13.8. Split heat pumps need 14.3 SEER2 and 7.5 HSPF2 nationwide. A contract that quotes a SEER2 figure should match the AHRI rating for that exact combination, not the outdoor unit alone.

Equipment made or imported since 1 January 2025 uses lower-GWP A2L refrigerants (R-454B or R-32) instead of R-410A. An EPA rule finalized in May 2026, effective 27 July 2026, removed the 1 January 2026 cutoff, so contractors may install pre-2025 R-410A systems until that stock runs out. Either can be a legitimate choice. The contract should say which refrigerant you are getting, so the price reflects it; R-410A vs the new refrigerants explains the trade-offs.

Scope: the items that move the price

Most disputes after an install are about scope, not equipment. Each item below is either in the price, excluded, or “if needed” at a stated rate. The contract should say which.

Ranges are third-party published figures labeled by geography, not this site’s prices. Under EPA’s Section 608 rules, refrigerant for these systems may be sold only to certified technicians or to employers of certified technicians. That is one reason refrigerant handling belongs to the contractor, not the homeowner.

Permit and inspection

The City of Dallas issues mechanical permits through its DallasNow portal so that work complies with the Dallas Mechanical Code and is performed by a licensed air-conditioning contractor. Installing or replacing a central system is mechanical work; no City page we found states the replacement rule in one sentence, so confirm with Development Services for your job.

Other DFW cities run their own permit offices with their own fees. The contract should name who pulls the permit, whether the fee is in the price, and that the job is not complete until the inspection passes. Keep the permit number; it is useful at resale and if a warranty question comes up.

Warranties: two documents, two clocks

An AC installation carries two separate warranties. The manufacturer covers parts. The contractor covers labor and workmanship, for whatever term they put in writing. The contract should state the labor term, what it covers, and how to make a claim.

Registration can decide how long the parts warranty lasts. Trane extends its warranty term only if the product is registered within 60 days of installation; registered late, it keeps the base warranty. Lennox requires registration within 60 days of installation (or closing, for new construction) for its extended limited warranty. Other brands set their own rules, so the contract should say who registers the equipment and by when.

More detail is on AC installation warranties.

Payment terms worth asking for

Texas has no general cap on HVAC deposits that this site could verify. What protects you is the schedule: how much changes hands before the equipment is on site, and how much waits until the job is done and inspected.

• A modest deposit, with the balance on completion or after the inspection passes.
• A written schedule if payment is staged, tied to milestones (equipment delivered, install complete, inspection passed).
• An itemized invoice that matches the contract, with the license number and TDLR notice.
• Financing terms, if any, as a separate document you can read before signing.

In Texas, labor to repair or remodel residential property is not taxable; the materials are. Your invoice can be lump-sum (tax built into the contractor's material cost) or separated (tax shown on the materials line). Both are normal.

Your 3-day right to cancel

Under Texas Business and Commerce Code §601.051, a consumer may cancel a consumer transaction until midnight of the third business day after signing, where the sale was solicited and agreed somewhere other than the merchant’s place of business and the price is over $25.

This matters when a salesperson visits your home and you sign at the kitchen table. Read the statute for the conditions and exceptions before relying on it, and cancel in writing so there is a record.

1. Note the date and time you signed, and count three business days.
2. Read the cancellation notice in the contract, if one is included, and follow its method.
3. Send the cancellation in writing and keep a copy and proof of delivery.
4. Ask in writing how any deposit will be returned.

Homestead contracts

For a lien on a homestead, Texas requires work and materials to be contracted for in writing, with the consent of both spouses if the owner is married, before the work starts.

This is about the contractor’s ability to place a lien, and it is one reason a contract may ask for both spouses’ signatures. If anything here applies to your situation, read the provisions on the official statutes site or ask an attorney.

Read from the Texas Constitution; verify on the official statutes site.

A worked example: two contracts, one price

Say a homeowner in Richardson has two signed-ready proposals for a 3-ton replacement at nearly the same price. (A hypothetical example.) Proposal A lists model numbers, an AHRI reference, a new coil and line set, a new drain pan, the permit fee and a two-year labor term. Proposal B says “3-ton 15 SEER2 system, standard install, permit if required”.

At the same price, B can easily become more expensive once unstated items are added as change orders. Ask B to rewrite the proposal to the same level of detail, then compare again. The quote comparison tool lays this out for up to three quotes.

Red flags in a contract

• No TDLR license number, or one that does not show in the TDLR search.
• “Or equivalent” equipment without your sign-off on a substitution.
• Most of the price due before equipment is delivered.
• No mention of the permit, or a statement that none is needed without saying why.
• A labor warranty that exists only in a sales brochure.
• Blank spaces left to be “filled in later”.
• Pressure to sign the same day for a price that “expires tonight”.
• Promises of a federal tax credit. The federal Energy Efficient Home Improvement Credit (25C) applied to qualifying property placed in service before 31 December 2025. It is not available for a system installed in 2026.

If a dispute arises with a licensed contractor, complaints against a licensee are filed with TDLR online or by mail.

Sources

• 16 Tex. Admin. Code §75.71 (Cornell LII mirror) (retrieved 2026-10-20)
• TDLR ACR program (retrieved 2026-10-20)
• TDLR license search (retrieved 2026-10-20)
• TDLR complaints (retrieved 2026-10-20)
• Texas Department of Licensing and Regulation, Air Conditioning and Refrigeration program (retrieved 2026-09-23)
• AHRI, "2023 Energy Efficiency Standards"; DOE regional standards (retrieved 2026-09-23)
• NAHB summary of the EPA final rule (May 2026); EPA AIM Act Technology Transitions program (retrieved 2026-09-23)
• US EPA, Section 608 refrigerant sales restriction (retrieved 2026-10-20) — verify before relying on it
• City of Dallas Development Services, mechanical permits (Dallas Mechanical Code, Chapter 55 amendments); process and fee: verify with the City before relying on it (retrieved 2026-09-23) — verify before relying on it
• Trane, Warranty and Registration (retrieved 2026-10-20)
• Lennox, Extended Limited Warranty FAQ (retrieved 2026-10-20) — verify before relying on it
• Texas Comptroller, Publication 94-116, "Real Property Repair and Remodeling" (retrieved 2026-09-23)
• Texas Business and Commerce Code ch. 601 (retrieved 2026-10-20)
• Texas Constitution Art. XVI §50; Property Code §53.254 (retrieved 2026-10-20) — verify before relying on it
• IRS, Energy Efficient Home Improvement Credit (retrieved 2026-09-23)

Questions

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