By Chad Wiswall, Owner & Lead HVAC Technician, Alabama HVAC License #92244
I have been doing HVAC in Central Alabama since 1993. Most of the contractors I share the market with are honest people running real businesses. But every year I get a handful of calls from homeowners who paid $8,000, $12,000, sometimes $20,000 to someone who took the money and either disappeared, installed something inappropriate, or did such poor work that the system died in three years. This article is not about naming names. It is about teaching you the verification process I would want my own mother to use before signing any HVAC contract in this state. This guide is part of our complete guide to HVAC in Central Alabama.
Why HVAC is uniquely vulnerable to bad actors
HVAC sits at an awkward intersection. The equipment is expensive enough that bad actors find the margins worth chasing. The work is technical enough that most homeowners cannot evaluate quality during or after the install. The failures often do not show up for 2 to 5 years, which is long past the contractor's labor warranty and often past when the homeowner could prove negligence in court. And the licensing enforcement in Alabama, while better than some states, still lets unlicensed operators work in the gray areas of "maintenance" and "repair" without getting caught quickly.
The result is that HVAC has more bad actors per dollar than most home services categories. Not because most contractors are bad. Because the bad ones can hide longer.
Red flag #1: Door-to-door pitches and storm chasers
A reputable HVAC contractor does not knock on doors in neighborhoods looking for work. They have a yellow pages presence, a website, a Google Business Profile with hundreds of reviews, and a phone that rings on its own.
If someone shows up at your door uninvited claiming to be in the neighborhood doing free inspections, offering same-day discounts, or saying they noticed your AC unit looks old and they can replace it cheap, your scam alarm should be on full volume. This pattern intensifies after major storms when out-of-state "storm chasers" flood disaster zones offering quick replacements. They often have no Alabama HVAC license, do not pull permits, do not register equipment for warranty, and are gone before warranty issues surface.
Verification: Get the company name and license number. Walk inside. Look them up on the Alabama Board of Heating, Air Conditioning and Refrigeration Contractors website ([INSERT verify with Chad: confirm current URL for AL HVAC license lookup, likely https://hacr.alabama.gov]). If no active Alabama HVAC license, close the door.
Red flag #2: "Free" diagnostic that becomes a $4,000 sales pitch
The classic bait-and-switch. A "free" or "$29" service call that arrives, the tech spends 10 minutes glancing at the system, then announces the compressor is failing, the coil is leaking, the refrigerant is illegal, the heat exchanger is cracked, the unit is dangerous, the contactor is welded, the capacitor is bulging, and you need a complete replacement for $9,500 today only.
Real diagnostics take 30 to 90 minutes and involve actual instrumentation. A real tech writes down measurements: refrigerant pressures, superheat, subcooling, temperature split, capacitor microfarads, contactor resistance. They show you the readings and explain what is in spec and what is not. They give you a written quote that lists specific parts and labor for specific problems.
If the diagnostic is a verbal sales pitch with no measurements, no written quote, no breakdown of what is wrong and what each fix costs, that is the script. Walk away.
Verification: Ask the tech to show you the specific measurement that tells him the compressor is failing. If they cannot show you a reading, the diagnosis is invented.
Red flag #3: Pressure to decide today
"This price is only good today." "I can only get this unit at this rate this week." "If you do not sign by Friday the rebate goes away." "I have to leave by tonight."
Real HVAC quotes are valid for 30 days minimum at most reputable companies. Real rebates and tax credits have published expiration dates you can verify online. Real contractors want you to think it through, talk to your spouse, get a second opinion, and feel good about the decision.
Manufactured urgency is a sales technique designed to bypass your judgment. Anyone using it is either trained in high-pressure sales (commission-driven companies are common offenders here) or actively running a scam.
Verification: Ask for the quote in writing with a 30-day validity. Politely say you want to think about it overnight and will call back tomorrow. Watch the reaction. A reasonable contractor says "of course, take your time." A bad actor pressures harder.
Red flag #4: No physical address or only a PO Box
A real HVAC business has an actual physical location. Service trucks parked there. Inventory of equipment, parts, and refrigerant on site. Office staff. A sign on the building. A real address you could drive to.
If the contractor's business address turns out to be a UPS Store, a virtual office, a residential address with no commercial presence, or a parking lot, you are dealing with either a one-person operation that may disappear on you or an outright shell. Either is bad news for a $12,000 purchase.
Verification: Look up the business address on Google Maps Street View. Drive by if it is local. A real business has a real building.
Red flag #5: Cash only or "save the sales tax" deals
Anyone offering to skip sales tax for cash payment is committing tax fraud. Anyone who only accepts cash, no checks, no cards, no financing, is hiding from financial records. Anyone who insists on cash payment with no invoice is removing your paper trail and your warranty registration.
A real HVAC contractor accepts checks, credit cards, and offers financing through reputable lenders (Wells Fargo, Goodleap, Microf, Synchrony, Alabama Power utility financing, etc.). They charge applicable sales tax. They give you an itemized invoice.
Verification: Ask about financing options and payment methods upfront. A "cash only" answer is the answer.
Red flag #6: No license, no insurance, no permits
Alabama requires an active HVAC contractor license to perform HVAC installation and major repair work. Alabama Board of Heating, Air Conditioning and Refrigeration Contractors maintains the license database. Anyone working without one is operating illegally and voiding any future warranty claims on the equipment they touch.
Alabama also expects HVAC contractors to carry general liability insurance and workers' compensation. If a worker falls off a ladder in your driveway and the contractor is uninsured, you can be sued personally as the property owner.
Permits are required for most HVAC installations in Montgomery, Prattville, Wetumpka, Pike Road, Auburn, Dadeville, and most surrounding municipalities. Pulling the permit triggers a code inspection, which is your protection against shoddy work. Skipping the permit is illegal AND removes your one independent verification step.
Verification: Three asks before signing any HVAC contract:
- Ask for the Alabama HVAC contractor license number. Verify it active at the Alabama Board's website. Ours is #92244.
- Ask for a current Certificate of Insurance (COI) listing general liability and workers' comp. Have the contractor email it to you directly from their insurance agent if you are extra cautious.
- Ask "are you pulling a permit for this work, and will I receive a copy of the permit and the inspection sign-off?" If the answer is "you don't need a permit for this" on what is clearly permittable work (system replacement, major component replacement), that is your answer.
Red flag #7: Quotes that are dramatically lower than every other quote
If three contractors quote your job in the $11,500 to $13,200 range and one quotes $7,200, the cheap one is leaving something out. Common omissions on bait-and-switch low quotes:
- Permits not included (you pay extra later)
- Lower-grade equipment than other quotes (different SEER rating, different brand tier)
- Refrigerant line set reuse instead of new
- No new electrical disconnect or whip
- No condensate drain pan replacement
- No new thermostat
- No registration of warranty
- Sketchy labor warranty (90 days vs the standard 1 to 2 years)
- Cheap copper line set instead of insulated coil-grade
- Subcontracted labor instead of W-2 employees
The work then gets started, problems appear ("oh, we need to replace this electrical, that is extra"), and the final invoice is $11,000 anyway, but now you are committed and the work quality is questionable.
Verification: Compare quotes line by line. Make every contractor itemize equipment model numbers, line set length, refrigerant type and amount, thermostat brand, electrical work, permits, registration. Compare apples to apples. The lowest quote is sometimes the best deal. Often it is the most expensive deal in the end.
Red flag #8: Refrigerant scares
A particularly Alabama-specific scam in recent years is the "your refrigerant is illegal, you have to replace your whole system" pitch. Sometimes it is true. Often it is exaggerated.
R-22 was phased out for new equipment in 2010 and for production/import in 2020. Existing R-22 systems are still legal to operate and can be repaired with recovered or stockpiled R-22, though refrigerant costs are very high now. There is no legal requirement to scrap an R-22 system as long as it functions.
R-410A is being phased down (not banned) starting 2025 for new equipment manufacture. Existing R-410A systems are legal to operate indefinitely.
The new refrigerants (R-454B, R-32) are entering the market but R-410A systems will be serviceable for many years to come.
A contractor pitching "you have to replace the whole system because the refrigerant is illegal" is either confused or running a scam. The actual question for an R-22 system is one of repair economics (refrigerant is now $200+ per pound, so a leak repair plus recharge can run $1,500+). It is not a legality question.
Verification: Ask the contractor to cite the specific EPA regulation. If they cannot, the claim is invented.
How to verify ANY contractor in 10 minutes
This is the protocol I would teach my mother. Total time: 10 minutes.
- Get the company's full legal name and Alabama HVAC license number.
- Verify the license at the Alabama Board of Heating, Air Conditioning and Refrigeration Contractors website. Confirm: active status, name matches, expiration date not lapsed.
- Check the Better Business Bureau (bbb.org) for accreditation status and complaint history. Look for the rating (A+ down to F), the number of complaints, and how they were resolved. We are BBB Accredited A+.
- Read Google Business Profile reviews. Look for: review count (under 50 is suspicious for an established contractor), pattern of recent reviews (sudden surge can indicate fake reviews), and how the business responds to negative reviews. We have 1,247 reviews at 4.9 stars.
- Ask for a Certificate of Insurance (COI). Have the agent email it to you, not just the contractor.
- Ask "how long have you been in business?" Cross-reference with the BBB profile, the website's "since [year]" claim, and the Secretary of State business filing. We were founded in 1993, 33 years in operation.
- Ask for 3 references in your specific area. Then actually call one of them.
- Ask "do you pull permits?" A "yes, always" is the right answer.
- Get the quote in writing with a 30-day validity.
- Sleep on it. Anyone who pressures you to decide tonight is not the contractor for you.
What a real Alabama HVAC contractor looks like
To recap, here is the green-flag profile:
- Active Alabama HVAC contractor license (verifiable at the state board's website)
- Physical business address you could drive to
- 5+ years in continuous operation (preferably 15+)
- BBB Accredited with a B or A rating, ideally A+
- 100+ Google reviews at 4.5+ stars with active engagement on negative reviews
- Certificate of Insurance available on request, current general liability and workers' comp
- Pulls permits on permittable work
- Provides written quotes with 30-day validity and itemized scope
- Offers multiple payment methods including financing through reputable lenders
- Registers equipment warranties on your behalf
- Offers documented maintenance agreements
If you find a contractor that hits all those marks, you have someone worth hiring. If they miss several, keep shopping.
FAQ
How do I verify a contractor's Alabama HVAC license?
Visit the Alabama Board of Heating, Air Conditioning and Refrigeration Contractors website and search the licensee database by name or license number. Confirm: active status, license type matches the work being performed, expiration date is not lapsed, and the company name matches the contractor you are talking to. Our license number is #92244.
What should I do if I think I have been scammed by an HVAC contractor?
File a complaint with the Alabama Board of Heating, Air Conditioning and Refrigeration Contractors if a licensed contractor performed defective or fraudulent work. File a complaint with the Better Business Bureau and the Alabama Attorney General's Consumer Protection Division. If significant money is involved, consult a consumer protection attorney about civil remedies. Document everything: contracts, invoices, photos, communication records.
Is it normal for an HVAC contractor to require a deposit before work?
Yes, deposits of 25 to 50 percent are standard for major installations. The reason is contractors order equipment specifically for your job and cannot return it if you cancel. However, 100 percent payment before work begins is unreasonable and a red flag.
What is the average cost of a new HVAC system in Alabama?
A full system replacement (outdoor condenser plus indoor air handler/furnace plus coil and basic line set) for a typical 1,800 to 2,400 square foot Central Alabama home in 2026 runs roughly $9,500 to $20,000 depending on equipment tier, brand, efficiency rating, and complexity of the install. Quotes substantially below this range usually indicate equipment downgrades, scope omissions, or both.
How can I tell if my HVAC contractor pulled a permit?
Ask for a copy of the permit at the time work begins. Most municipalities in our service area (Montgomery, Prattville, Wetumpka, Auburn, Dadeville, others) post permit records online and you can verify your address has an open permit. A code inspection is performed after the work, and the contractor should provide you with the inspection sign-off paperwork.
Want to work with a contractor that passes every verification check? Chad's AC Direct has held Alabama HVAC Contractor License #92244 since 1993, holds BBB Accredited A+ status, and has 1,247 reviews at 4.9 stars across our two Central Alabama locations: Montgomery (2546 Bell Rd, 334-264-6464) and Dadeville (360 Windflower Dr, 334-478-1438). We pull permits, register warranties, itemize quotes, and provide written contracts with no pressure to sign. Owner Chad Wiswall is on every job. Buy Direct, Pay Less.