How to Quote HVAC Jobs
A practical quoting guide for Australian air conditioning installers and refrigeration mechanics. Covers pricing models for splits, multi-splits, and ducted systems, hourly rates by city, material markup, ARCtick licensing, and how to present quotes that win work and protect your margin.
Why HVAC quoting is different from other trades
HVAC quoting sits in a unique spot. The equipment is expensive, the customer can price-check it, and the installation cost is often more than the unit itself. You are quoting a system, not just a service call. A split system install involves pipework, electrical, drainage, brackets, and commissioning. A ducted system adds ductwork design, zoning, and air balancing on top of that.
The HVAC businesses that stay profitable understand that their margin is in the installation skill and system knowledge, and they quote accordingly. Underprice the labour and give away the expertise. Overprice without showing the customer what they are getting and lose the job to someone who itemised it properly.
This guide covers each pricing decision with real 2026 Australian benchmarks so you can quote with confidence across every system type.
Step 1: Calculate your true cost per hour
Before you set a charge-out rate, work out what an hour of your time actually costs the business. This is your loaded hourly cost, and it includes everything required to put you on site for 60 minutes with the right tools and certifications.
| Cost component | Typical annual range |
|---|---|
| Wages (including your own draw) | $65,000 - $100,000 |
| Superannuation (11.5%) | $7,500 - $11,500 |
| Vehicle (lease, fuel, rego, maintenance) | $14,000 - $22,000 |
| Insurance (public liability, professional indemnity, vehicle) | $3,500 - $7,000 |
| Tools, gauges, vacuum pumps, recovery units, PPE | $3,000 - $8,000 |
| ARCtick licence + state electrical/mechanical licence + CPD | $800 - $2,000 |
| Accounting, software, phone, admin | $3,000 - $6,000 |
| Workers comp (if employing) | $3,000 - $10,000 |
For a sole trader HVAC technician, total annual costs typically land between $95,000 and $165,000. At 1,700 billable hours per year (allowing for travel, quoting, admin, and holidays), your loaded cost per hour sits between $56 and $97.
Your charge-out rate covers this cost plus your profit margin. A healthy margin for a residential HVAC installer is 30-40% on top of costs. That is how most installers land in the $80-120/hr range for standard residential work and $100-140/hr for commercial. Darwin and Sydney command the top end. Hobart and Adelaide sit lower.
Step 2: Choose the right pricing model
HVAC work spans a wide range: a 45-minute split system service through to a week-long ducted install on a two-storey home. The pricing model changes with the job type.
Per-unit fixed price (split system installs)
Best for: standard split system installations where the scope is clear, the pipe run is predictable, and the electrical is straightforward.
You quote a single number that covers the unit, installation labour, materials (pipe, cable, brackets, drain), and commissioning. Back-to-back installations (indoor and outdoor units on opposite sides of the same wall) are the most straightforward to price because the pipe run is minimal.
This is where experienced installers make their best margins. Once you have done 200 split installs, you know exactly how long a standard back-to-back takes and your efficiency gains go straight to profit.
The risk: quoting from photos without a site visit. A "standard install" turns complicated when you find asbestos cladding, a first-floor unit with no external wall access, or a switchboard at capacity. Always confirm access, pipe run, and electrical capacity before locking a fixed price.
Project-based supply and install (ducted and multi-split systems)
Best for: whole-house ducted systems, multi-split installations, commercial fit-outs, and any job where you are designing and specifying the system.
You quote a complete project price that bundles the system, ductwork or pipework, electrical, zoning, commissioning, and any builder provisions (ceiling access, bulkheads, penetrations). This is the model customers expect on large residential and commercial jobs.
The key to profitability: do a proper load calculation and system design before quoting. Use manufacturer sizing tools, confirm the building envelope (insulation, glazing, orientation), and account for the full duct run. The equipment is less than half the cost of a ducted install. Your margin lives in the ductwork, zoning, and commissioning, and those are the line items most competitors underestimate.
Hourly plus materials (service and maintenance)
Best for: service calls, diagnostics, breakdown repairs, warranty work, and any job where you walk in the door with uncertainty about the scope.
You charge a call-out or service fee plus an hourly rate plus materials at a marked-up price. Most HVAC businesses charge for a minimum first hour on service calls. The service fee covers travel time and the first diagnostic assessment.
The trap: running service work at the same rate as installation. Service and breakdown work is higher-skill, higher-urgency, and carries more risk (misdiagnosis, refrigerant handling, electrical). Your service rate should reflect that, particularly after hours.
Step 3: Benchmark your rates against the market
Hourly charge-out rates by city (2026)
| City | Residential | Commercial |
|---|---|---|
| Sydney | $90 - $120/hr | $110 - $140/hr |
| Melbourne | $85 - $115/hr | $105 - $135/hr |
| Brisbane | $80 - $110/hr | $100 - $130/hr |
| Perth | $85 - $120/hr | $105 - $140/hr |
| Adelaide | $75 - $105/hr | $95 - $125/hr |
| Canberra | $85 - $115/hr | $105 - $135/hr |
| Hobart | $75 - $100/hr | $90 - $120/hr |
| Darwin | $95 - $125/hr | $115 - $145/hr |
| Regional | $70 - $110/hr | $90 - $130/hr |
After-hours rates (evenings and Saturdays) typically run at 1.5x the standard rate. Sundays and public holidays at 2x. Emergency breakdowns during a heatwave or cold snap carry a higher call-out fee on top of the penalty rate.
Call-out and service fee benchmarks (2026)
| Timing | Typical service call fee |
|---|---|
| Standard hours (Mon-Fri, 7am-5pm) | $80 - $150 |
| After-hours / weekends | $150 - $300 |
| Public holidays / extreme weather events | $250 - $450+ |
Most HVAC businesses include the first 30 minutes of diagnostic time in the call-out fee. Others charge it separately. Either model works as long as the customer knows the structure before you arrive.
Split system installation benchmarks (2026, supply and install)
| System type | Typical price range | Notes |
|---|---|---|
| Wall-mount split, 2.5-3.5kW | $1,800 - $3,200 | Standard bedroom or study |
| Wall-mount split, 5-7kW | $2,500 - $4,500 | Living area or open-plan room |
| Wall-mount split, 7-9kW | $3,200 - $5,500 | Large living area or commercial office |
| Multi-split, 2 heads | $4,500 - $7,000 | Two rooms, one outdoor unit |
| Multi-split, 3-4 heads | $6,500 - $10,000 | Three or four rooms, one outdoor unit |
| Cassette (ceiling-mounted) | $3,500 - $7,500 | Commercial offices, retail, restaurants |
| Install only (customer-supplied unit) | $600 - $1,200 | Back-to-back, standard electrical |
Pipe runs longer than 5 metres, second-storey installations, difficult access (brick or double-brick walls, heritage buildings), and switchboard upgrades all push the price toward the upper end or beyond these ranges. Always assess on site before quoting.
Ducted system installation benchmarks (2026, supply and install)
| Home type | Typical price range | Notes |
|---|---|---|
| 2-3 bedroom single storey | $7,500 - $10,500 | 8-10kW, 1-2 zones |
| 3-4 bedroom single storey | $10,000 - $14,000 | 10-14kW, 2-4 zones |
| 4-5 bedroom double storey | $15,000 - $22,000+ | 14-20kW, 4-6 zones, multiple returns |
| Ducted add-on zone | $1,500 - $4,000 | Extending existing ductwork |
| Zoning system (controller + motors) | $1,500 - $4,000 | Smart controller, zone sensors, dampers |
Retrofit ducted installations in existing homes cost more than new builds because of access constraints, ceiling space limitations, and the need to work around existing wiring and plumbing. A rough guide: $80-120 per square metre of conditioned floor area for supply and install.
Service and maintenance benchmarks (2026)
| Service type | Typical price range | Pricing model |
|---|---|---|
| Split system annual service | $100 - $180 | Fixed |
| Ducted system annual service | $150 - $250 | Fixed |
| Deep chemical clean (split) | $150 - $250 | Fixed |
| Refrigerant leak detection + recharge | $200 - $450 | Hourly + materials |
| Compressor replacement | $600 - $1,500 | Fixed |
| Capacitor / blower motor repair | $295 - $900 | Fixed or hourly + parts |
| PCB / control board replacement | $350 - $800 | Fixed |
| Unit removal and disposal | $150 - $400 | Fixed |
| Annual maintenance contract (residential) | $250 - $450/yr | Fixed annual |
Step 4: Price materials with a consistent markup
Material markup in HVAC is more nuanced than most trades because the customer can price-check the major equipment online. You need a tiered approach.
| Material category | Typical markup | Rationale |
|---|---|---|
| Major equipment (indoor + outdoor units) | 20 - 30% | Customer can price-check; margin is in installation skill |
| Copper pipe and fittings | 25 - 35% | Bulk consumable, price fluctuates with commodity markets |
| Refrigerant (R32, R410A, R134a) | 30 - 40% | Handling licence required, hazardous goods storage |
| Electrical cable, isolators, circuit breakers | 25 - 35% | Standard electrical materials |
| Ductwork and plenums | 25 - 35% | Custom fabrication or supply, handling, on-site cuts |
| Brackets, wall plates, drain fittings | 30 - 40% | Small items, high handling cost relative to value |
| Zone controllers, sensors, smart thermostats | 25 - 35% | Specialist components, programming and commissioning time |
| Service parts (capacitors, PCBs, fan motors) | 50 - 100% | Sourcing, stocking, warranty on install, diagnostic skill |
On supply-and-install quotes, many HVAC businesses absorb the equipment markup into the total project price rather than showing it as a separate line item. This avoids the price-comparison problem while maintaining your margin. Break out labour, installation materials, and electrical as separate lines, and bundle the equipment as "system supply" at your marked-up price.
Always use current supplier pricing when quoting. Copper prices move with global commodity markets, and a quote based on last quarter's costs can erode your margin on a job that starts two months later. State a validity period (14-30 days) on every quote.
Step 5: Include licensing and compliance costs
HVAC is one of the most heavily regulated trades in Australia. Your quoting needs to reflect the cost of staying compliant.
National: ARCtick Refrigerant Handling Licence
Mandatory for anyone who purchases, handles, or disposes of refrigerant commercially in Australia. The Australian Refrigeration Council (ARC) administers the scheme. Licence types include:
- Full Refrigerant Handling Licence (RHL) for qualified refrigeration and air conditioning mechanics (Cert III in Air Conditioning and Refrigeration or equivalent)
- Restricted Split System Licence (NSW) for installers limited to single-head split systems under 18kW cooling capacity
- Refrigerant Trading Authorisation for businesses that buy and sell refrigerant
ARCtick licence renewal and the mandatory training to maintain it are real business costs. Factor the annual cost into your overhead rate.
State and territory requirements
On top of the national ARCtick licence, most states require additional licensing for electrical or mechanical services work associated with air conditioning installation.
| State | Requirement | Issuing body |
|---|---|---|
| NSW | Contractor licence or Qualified Supervisor Certificate for air conditioning and refrigeration work. Restricted Split System licence available for single-head installs under 18kW. | NSW Fair Trading |
| VIC | Restricted Electrical Workers Licence for air conditioning installation. Refrigerated air conditioning classified as mechanical services plumbing. | Energy Safe Victoria / VBA |
| QLD | Mechanical services (air conditioning) occupational licence required. QBCC contractor licence for work over $3,300 inc GST. | QBCC |
| SA | Plumbing licence (air conditioning class) for refrigerated systems. Electrical licence for associated electrical work. | OTR (SA) |
| WA | Electrical contractor licence required for electrical work. No separate RAC licence, but ARCtick is mandatory. | Building and Energy (WA) |
| TAS | Occupational licence for air conditioning and refrigeration work under the Occupational Licensing Act. | CBOS Tasmania |
| NT | Electrical contractor licence covers air conditioning electrical work. ARCtick mandatory for refrigerant handling. | NT WorkSafe |
| ACT | Electrician licence for electrical work. Plumber licence (mechanical services) for refrigerated systems in some contexts. | Access Canberra |
Build the annual cost of maintaining these licences into your overhead rate. On individual jobs, factor in the time for commissioning documentation, warranty registration with the manufacturer, and any certificates or compliance paperwork required by the state or local council.
Step 6: Build a detailed line-item breakdown
An itemised quote converts better than a single-number lump sum because the customer can see exactly what they are paying for. It also makes variations straightforward to price and reduces disputes.
Here is a worked example for a common residential job: a 4-bedroom single-storey home in Brisbane getting a 12kW reverse cycle ducted system with 4-zone control.
Worked example: 4-bedroom ducted system install
| Line item | Detail | Amount (ex GST) |
|---|---|---|
| System supply | 12kW reverse cycle ducted unit (indoor + outdoor), brand-name, 5-star energy rating | $4,800 |
| Ductwork and plenums | Supply and install flexible and rigid duct, plenums, outlets (8 supply + 2 return air grilles) | $2,400 |
| Zone control system | 4-zone smart controller, zone sensors, motorised dampers | $1,800 |
| Refrigerant pipework | Copper pipe, flare fittings, insulation, brazing, nitrogen pressure test | $650 |
| Condensate drainage | PVC drain from indoor unit to nearest stormwater or garden | $180 |
| Electrical | Dedicated circuit from switchboard, isolator, wiring to indoor and outdoor units | $850 |
| Mounting and access | Outdoor unit pad/bracket, indoor unit mounting, ceiling access provisions | $350 |
| Labour | Installation (2 technicians, 2 days), commissioning, air balancing, zone calibration | $2,800 |
| Commissioning and handover | System test, refrigerant charge verification, customer walkthrough, warranty registration | $350 |
| Subtotal (ex GST) | $14,180 | |
| GST (10%) | $1,418 | |
| Total (inc GST) | $15,598 | |
This sits within the $10,000-14,000 ex-GST benchmark for a 4-bedroom single-storey home, at the higher end because of the 4-zone control system and smart controller. The equipment cost ($4,800) is 34% of the total, which is typical for a well-priced ducted install. A quote where equipment is more than 50% of the total usually means the installation labour is underpriced.
Notice that every line item has a description the customer can understand. "Ductwork and plenums" means more to a homeowner than "mechanical services labour." Break the jargon into plain language and your conversion rate goes up.
Step 7: Present the quote professionally and follow up
An HVAC quote is a technical document. The customer is spending $2,000-20,000+ and comparing you against two or three other installers. How you present the quote matters as much as the price.
What to include beyond the price
- System specifications: make, model, capacity (kW), energy star rating, refrigerant type
- Warranty terms: manufacturer warranty period (typically 5 years parts and labour), your installation warranty, and what voids either
- Timeline: estimated start date, duration, and any access requirements
- Exclusions: what is specifically not included (e.g. asbestos removal, structural modifications, painting, plastering)
- Validity period: 14-30 days, with a note that equipment pricing may change after that
- Payment terms: deposit structure (typically 10-30% on acceptance for ducted systems), progress payments for large jobs, balance on completion
Timing and follow-up
Send the quote within 24-48 hours of the site inspection. For split systems, same day is ideal. For ducted systems that require a load calculation and system design, 48 hours is reasonable. Anything longer and the customer assumes you are too busy to want the work.
Follow up within 48 hours of sending the quote if you have not heard back. A simple check-in asking whether they have any questions about the system selection or the installation process is enough. A systematic follow-up approach lifts win rates by 10-15 percentage points compared to quoting and waiting.
For ducted and multi-split jobs, offer a brief phone call to walk through the quote. Customers spending $10,000+ want to talk to the person who will be on their roof, and that conversation is where you differentiate from the installer who emailed a PDF and disappeared.
7 common HVAC quoting mistakes
- Quoting from photos without a site visit. Access issues, switchboard capacity, pipe run length, ceiling space, and wall construction all affect the install time and cost. A site visit takes 30-60 minutes and prevents a $500-2,000 underquote.
- Underpricing ductwork and installation labour. The equipment is less than half the cost of a ducted install. If your ductwork and labour line items are thin, you are giving away the most skilled part of the job.
- Ignoring the electrical scope. Many split and ducted installs require a dedicated circuit, sometimes a switchboard upgrade. If you quote the aircon and discover the switchboard needs a new circuit breaker or a board upgrade, that cost comes off your margin or creates an awkward variation.
- Omitting commissioning time. Commissioning a ducted system (refrigerant charge verification, air balancing, zone calibration, customer walkthrough, warranty registration) takes 2-4 hours. If you did not quote it, you either skip it (and get warranty claims) or absorb it.
- Using stale material prices. Copper and refrigerant prices move with global markets. A quote based on pricing from three months ago can cost you hundreds on a ducted install. Use current supplier pricing and set a 14-30 day validity period.
- Matching the lowest competitor on price. In HVAC, the cheapest quote often signals corner-cutting: skip the load calculation, undersize the ductwork, rush the commissioning. Compete on system knowledge, warranty coverage, and installation quality. Explain what the other quote probably left out.
- Forgetting to quote the full electrical. A common oversight: quoting the air conditioning install but omitting the isolator, dedicated circuit, or the connection to the switchboard. The electrical work on a split system adds $200-500. On a ducted system with zoning, it can be $800-1,800.
Quote HVAC jobs faster with FlowSpec
FlowSpec lets you speak your line items during the site inspection and sends the priced quote to Xero before you leave the driveway. Your Xero price list becomes the source of truth: say "12kW ducted unit, 8 supply outlets, 4-zone controller, dedicated circuit" and FlowSpec builds the itemised quote from your own prices.
Frequently asked questions
What hourly rate should an Australian HVAC technician charge in 2026?
Residential HVAC work in Australian capital cities charges out at $80-120 per hour in 2026. Commercial work sits higher at $100-140 per hour. Sydney and Darwin are at the top end, Hobart and Adelaide at the lower end. After-hours and emergency rates run 1.5x to 2x the standard rate. These are charge-out rates, not take-home. Your loaded cost per hour (wages, super, vehicle, insurance, tools, ARCtick licence) typically runs $50-75/hr.
How much should I charge to install a split system air conditioner?
A standard back-to-back split system installation (labour and materials, customer-supplied unit) runs $600-1,200 in 2026. Supply and install for a 2.5-3.5kW wall-mounted split ranges from $1,800 to $3,200, and a 5-9kW unit from $2,800 to $5,500. Multi-head split systems (2-4 indoor units) run $4,500 to $10,000 supply and install. Pricing depends on pipe run length, electrical requirements, and access difficulty.
How do I price a ducted air conditioning installation?
Ducted system pricing is project-based: a 3-bedroom single-storey home typically sits at $7,500-10,500 supply and install, a 4-bedroom home at $10,000-14,000, and a 5+ bedroom or double-storey home at $15,000-22,000+. The equipment is less than half the total. Ductwork, zoning, electrical, and commissioning make up the rest. Always do a site inspection and a load calculation before quoting a ducted system.
What markup should HVAC installers apply to equipment and materials?
Equipment units carry a markup of 20-30% in Australia, lower than other trades because customers can easily price-check major brands online. Consumables and materials (copper pipe, refrigerant, brackets, cable, drain fittings) justify 25-35%. Small parts and fittings used in service work carry higher markups of 50-100% because the handling, sourcing, and stocking cost is proportionally larger.
Do I need an ARCtick licence to install air conditioning in Australia?
Yes. An ARCtick Refrigerant Handling Licence is mandatory Australia-wide for anyone who purchases, handles, or disposes of refrigerant in a commercial context. There are multiple licence types: a full Refrigerant Handling Licence (RHL) for qualified refrigeration mechanics, a Restricted Electrical Licence in some states, and a Restricted Split System Licence in NSW for installers limited to single-head splits under 18kW. Most states also require separate electrical or mechanical services licensing on top of ARCtick.
How long should it take to prepare an HVAC quote?
A simple split system replacement takes 10-20 minutes to quote if you know the site. A multi-split or add-on job might take 30-45 minutes including the site assessment and load calculation. A full ducted system for a new build or retrofit can take 2-4 hours including the site survey, duct design, load calculation, and system selection. Tools like FlowSpec let you speak your line items during the site visit and send the priced quote to Xero before you leave the driveway.
Should I include the equipment cost in my HVAC quote or let the customer supply it?
Supply and install is the standard model for most HVAC work and the one that protects your margin and your warranty obligations. When you supply the equipment, you control the system selection, warranty chain, and commissioning quality. Customer-supplied units create warranty grey zones, increase the risk of mismatched components, and eliminate your equipment margin. If a customer insists on supplying the unit, charge a higher labour rate and exclude the equipment from your warranty.
What are the most profitable HVAC jobs to quote on?
Ducted system installations ($8,000-22,000+) offer the highest total revenue per job, with strong margins on ductwork and zoning. Multi-split installations ($4,500-10,000) have similar margin structures with less design time. Commercial maintenance contracts provide predictable recurring revenue. After-hours emergency breakdowns are highly profitable when you set proper call-out fees and penalty rates. Refrigerant leak detection and recharging ($200-450) is quick, high-margin work.