In today’s tough economic climate, many homeowners are tempted to ask for multiple air conditioning quotes, and then select the cheapest quote available. While saving money upfront might seem like a smart move, there could be hidden risks later on that can lead to major buyer’s regret. In New Zealand, where air conditioning installation is unregulated and the installers often unlicensed , choosing the lowest-priced option presented by a small, budget-focused HVAC installer may expose you to serious hazards that can jeopardise your comfort, safety, and burn a big hole in your wallet long after the installation has been completed.
In this article, we’ll explore why the cheapest air conditioning quote might not be the best choice to make. We’ll break down common issues—from lacking public liability insurance and using substandard materials to dangerous installation shortcuts, health and safety breaches, tax compliance concerns, and the risk of hiring a company that may not be around for future support. Our aim is to equip you with the knowledge you need to make a confident, informed decision when investing in your home’s air conditioning system so that you can enjoy the comfort and health benefits for years to come.
Top Risks for Buying the Cheapest Air Conditioning Quote
1. The Allure of the Lowest Price – But at What Cost?
The promise of a bargain is hard to resist, especially in challenging economic times like we are in today. Homeowners often opt for the cheapest quotes, believing they are securing a great deal. However, with sophisticated mechanical systems like air conditioning that require skilled installation, the old adage “you get what you pay for” holds especially true.
When companies lower their prices, they often do so by reducing the quality of materials and workmanship. Instead of trusted materials from reputable suppliers, installers may instead select the cheapest materials they can find, many of which may be new into the country and not compliant with AS/NZS standards. Less-experienced staff may be used instead of senior ones to lower the labour cost, while shortcuts in safety (eg. using ladders instead of safe access solutions like scaffolding or scissor lifts for working at heights) can turn a small saving into a significant expense when things go wrong. And they DO go wrong: accidents involving people falling off ladders are all too common in NZ, while there are even cases where an air conditioning installation in a newly-built home resulted in the entire house catching fire and burning down. The real question is: are you willing to risk your home’s safety and your peace of mind for a cheap air conditioning installation? Let’s delve into the specific issues you might face if you opt for the cheapest air conditioning quote.
2. No Public Liability Insurance
What Is Public Liability Insurance and Why It Matters
Public liability insurance is a critical safety requirement for any contractor, covering accidental damage or injuries that may occur during the installation process. For most reputable installers, proper insurance is a non-negotiable must-have, however many small and struggling companies have let their insurance lapse in recent years, meaning you are unprotected when something goes wrong..
Consider the following risks:
Structural Damage: Incorrect installation practices, such as making penetrations in the wrong place or using improper methods, can invalidate your home’s roofing or cladding warranties. This not only leaves you vulnerable to water damage, but may also reduce your property’s overall value.
Fire Hazards: There have been instances where substandard installation techniques— such as improper copper welding — have led to fires. Needless to say, the potential for a house fire caused by an uninsured installer is a risk no homeowner should take lightly.
Financial Liability: If an accident occurs and the contractor lacks liability insurance, you could be saddled with the cost of damages or injuries. Protecting yourself by choosing an insured contractor is a small price to pay for peace of mind.
3. The Use of Substandard Materials
Why Quality Materials Matter
A reliable air conditioning system depends heavily on the quality of the materials and components used during installation. High-quality materials from trusted suppliers ensure efficiency, longevity, and safety. When contractors offer rock-bottom prices, they could be doing so by using inferior materials that fall short of industry standards.
Potential Problems with Cheap Materials
Premature Repairs and Breakdowns: Low-quality components are more likely to fail under normal operating conditions, leading to frequent breakdowns and costly repairs that ultimately negate any initial savings. For example, we are aware where wall brackets started showing signs of rust and needed to be replaced after only 3 months of use. On a smaller, but no less damaging scale, the extensive use of poor quality screws outside can corrode and stain cladding, or even fail in their duty of fastening materials
Safety Risks: Electrical items all require to be certified to AS/NZS standards before being allowed to be sold in NZ, so always with your installer that they have sourced their materials from reputable suppliers (ask for paperwork if you are not entirely sure). Other areas are best-practice and common sense such as using fire-retardant copper insulation for its obvious safety benefits, however many installers balk at the higher cost, and use cheaper non fire-rated products instead, exposing your home and family to needless additional risk..
Home Damage: Poor quality installation materials can lead to short circuits, water damage and even compromise the structural integrity of your home.
Voided Warranties: Many home warranties and building insurance policies require that installations adhere to strict quality standards. The use of cheap materials may void these warranties, leaving you unprotected against defects or product performance issues. In short, ensuring your contractor is sourcing materials from a reputable supplier is essential for ensuring that your air conditioning system remains efficient, safe, and reliable..
4. Health and Safety Shortcuts
The Importance of Proper Safety Practices
Installing an air conditioning system is a complex job that often involves work at heights, handling heavy equipment, and work with electrical circuitry. Ensuring the safety of both the workers and your home is not only a legal requirement, but a moral imperative. Unfortunately, contractors who cut corners to reduce costs are more likely to ignore essential health and safety practices.
Real-World Consequences of Safety Shortcuts
Consider this scenario: a contractor chooses to use a long, unsecured ladder instead of proper scaffolding to install an air conditioning unit on the second floor of a 9-metre high house. The risks are clear—if a worker were to fall, the injuries could be catastrophic, and the trauma for you and your family could be equally severe.
Worker Safety: Compromised safety practices can result in serious injuries or fatalities. When a contractor takes shortcuts on safety, it is also a red flag indicating a broader disregard for proper installation procedures that could impact the quality and durability of your installation.
Homeowner Liability: Accidents on your property can disrupt your daily life, cause damage to your home, and potentially lead to costly legal disputes. Ensuring that the contractor follows stringent safety protocols is essential to avoid these scenarios.
Regulatory Violations: New Zealand’s health and safety regulations are designed to protect both workers and homeowners. Contractors who flout these regulations not only endanger lives but also expose themselves—and by extension, you— to unnecessary risk and danger.
By prioritising contractors with professional safety procedures and robust risk mitigation measures, you reduce the likelihood of accidents and protect both your home and your family.
5. Taking Installation Shortcuts
The Hidden Dangers of Cutting Corners on Installation
Beyond the major issues of insurance, materials, and safety practices, another critical risk lies in the shortcuts taken during the actual installation process. When contractors are under pressure to deliver low-cost quotes, they may bypass essential steps that are crucial for the optimal performance and longevity of your air conditioning system.
Common Installation Shortcuts and Their Risks
Not Evacuating Refrigerant Lines with a Vacuum Pump: Proper evacuation of refrigerant lines is essential to remove moisture and contaminants. Failing to do so can lead to inefficiencies, reduced performance, and potential long-term damage to the system.
Not Using a Spirit Level: Ensuring the indoor unit is level and the trunking is done which is best-practice, but often ignored. Skipping this step can lead to imbalanced operation, increased noise levels, and uneven wear on the unit.
Not Using a Torque Wrench: The correct tightening of flare nuts is vital to prevent refrigerant leaks. Without a torque wrench, the nuts may be under- or over-tightened, resulting in leaks that can compromise system performance and shorten the system’s lifespan. .
By taking these shortcuts, contractors not only jeopardise the efficiency of your air conditioning system, but also create long-term reliability and performance issues. These installation shortcuts might seem like minor details, but they are integral to the overall performance and durability of your system.
6. Tax Compliance and Hidden Financial Costs
Understanding Tax Compliance in the HVAC Industry
Adherence to tax regulations, including the charging and remittance of GST, is a hallmark of a responsible and reputable business. Unfortunately, some low-priced contractors are known to cut corners by not complying fully with their tax obligations.
The Risks Associated with Non-Compliant Contractors
Financial Irregularities: Contractors who undercut their competitors by not charging or paying GST, may have deeper financial issues. Such irregularities could be a sign that that affects the quality of work and aftercare services.
Legality and Accountability: A contractor that skirts around tax obligations is likely not going to have the robust financial structure to ensure they can honour installation quality warranties and repair or replacement as required by the NZ Consumer Guarantees Act.
Aftercare Services: Ensuring that your HVAC contractor is tax compliant is also an indicator of their long-term viability. You need a company that will be around to service your system years down the line, and a tax-compliant business is more likely to offer this stability.
Choosing a contractor that complies with all tax regulations is not only about legality—it’s about ensuring that your service provider has the stability and integrity to support your investment over time.
7. Longevity and Aftercare Concerns
The Need for Long-Term Support
Investing in an air conditioning system isn’t just about the initial installation; it’s about ensuring continuous comfort and efficiency in your home for years to come. A reputable HVAC company stands by its work with comprehensive warranties and reliable aftercare services.
The Consequences of Short-Term Operators
Warranty and Repair Issues: The cheapest operators often work on a lean, man-in-a-van basis without someone in charge of Administration and customer support. If your system encounters problems, most equipment suppliers have a very exacting process to follow before they will issue the free repair parts under warranty. You might then discover that the company does not have someone able to assist you in paperwork matters as installers often get too busy and can’t assist in the timely processing of warranty repairs. Also, diagnosing and repairing air conditioning is a separate skillset to installation work, and the company may not have someone with the special training and experience to undertake quality repairs
Lack of Accountability: Established companies with 10+ years of operating history usually have a vested interest in maintaining their business and reputation over the long run. In contrast, operators with a short-term focus may be less inclined to address issues post-installation, leaving you with unresolved problems and costly repairs.
Post-installation preventative maintenance Service: Ongoing maintenance is crucial for the efficiency of your air conditioning system. Companies that lack staff specialising in this area are typically focused only on the higher-value work such as new installations deliver inconsistent service quality, leading to higher energy bills and more frequent system failures.
When selecting an HVAC contractor, ensure that the company has a proven track record over the last 10 years or more and has staff that are dedicated to aftercare services. This will mean you have someone to contact in the event of performance issues developing with your system and provide you with the reassurance that help is available should any issues arise in the future.
8. Additional Hidden Risks and Considerations
Beyond the major concerns of insurance, materials, safety, installation shortcuts, and tax compliance, there are several other subtle risks that may not be immediately apparent:
Hidden Installation Issues
Improper Installation Techniques: Rushed or low-cost installations may employ quick-fix methods rather than adhering to industry best practices. This can lead to poor aesthetics, performance issues, higher energy consumption, and ultimately, premature system failure.
Voided Manufacturer Warranties: Many manufacturers have strict guidelines regarding installation procedures. Deviating from these guidelines—even in minor ways—can void the warranty, leaving you unprotected against early system failure.
Potential Property Damage: Beyond immediate appearance and system performance issues, poor workmanship can lead to water leaks, mould growth, and structural damage over time, compromising the integrity of your home.
9. How to Make the Right Choice for Your Home
Given these potential risks, what steps can homeowners take to protect their investment and ensure they receive a quality air conditioning installation?
Evaluate Beyond the Price Tag
Research the Company’s Reputation: Look for reviews, testimonials, and evidence of long-term customer relationships. A reputable company with a strong track record is more likely to deliver quality work.
Verify Insurance and Certifications: Always ask for proof of public liability insurance and confirm that all materials meet New Zealand’s AS/NZS standards. This ensures that your installation is safe and compliant.
Ask Detailed Questions: Don’t hesitate to ask about where they source their materials from and the installation process, including how the company handles refrigerant line evacuation, the leveling of indoor units, and the tightening of flare nuts. A reputable contractor will be transparent about their methods and use the proper tools—such as vacuum pumps, spirit levels, and torque wrenches—to ensure a quality installation.
Compare Comprehensive Quotes: Evaluate what is included in each quote. A detailed breakdown of equipment costs, labour and materials is a sign of a professional company that values transparency.
Prioritise Quality and Safety
Invest in Quality: A higher-quality installation may cost more upfront, but it could pay dividends in reliability, efficiency, and long-term savings.
Consider Longevity: Choose a contractor with a proven history of longevity and a commitment to aftercare services. This ensures that you have support for warranty repairs and maintenance long after the installation is complete.
Don’t Cut Corners on Safety: Always opt for companies that adhere to strict health and safety protocols. Ask what their H&S processes are and who oversees them. The risks associated with taking shortcuts are too great to risk otherwise.
Should You Risk Buying The Cheapest Air Conditioning System?
While the temptation to choose the cheapest air conditioning quote is understandable, it is vital to consider the hidden risks that come with such decisions. From lacking public liability insurance and using substandard materials to dangerous installation shortcuts, health and safety violations, and tax compliance issues, the lowest price could ultimately cost you far more than you save.
Your home is one of your most significant investments, and ensuring its safety and efficiency is paramount. By taking the time to research reputable companies, verifying their credentials, and asking detailed questions about their installation methods and aftercare services, you can make an informed decision that prioritises quality over a low upfront cost.
By carefully weighing these factors, you empower yourself to avoid the pitfalls of a bargain-basement installation and secure a system that stands the test of time. Your future self—and your home—will thank you for choosing quality, reliability, and peace of mind.
Choosing the right air conditioning system involves looking beyond the initial price tag to consider long-term performance, safety, and service. The cheapest option may seem attractive today, but the hidden risks could result in costly repairs, system failures, and potential hazards in the future. Protect your home investment by opting for a reputable HVAC contractor who prioritises quality, adheres to all safety protocols, and stands behind their work with comprehensive aftercare and support. OneAir has been in business for over 10 years and has one of the highest Google review scores in the industry with over 200+ reviews, so you can trust they will do a good job and look after you in the long term. Call 0800 ONEAIR (663247) for a free, unbiased advice, today.