Recent headlines about a HVAC price fixing lawsuit involving nearly all of the major HVAC equipment manufacturers have the commercial building sector asking questions. While the case remains unproven, it raises a troubling question in a climate of already rising HVAC equipment costs over the last several years.
4/24/2026 UPDATE: A second lawsuit has been filed against HVAC Equipment manufacturers. This time by contractors and distributors. More here.
Rising Commercial HVAC Costs Since 2020
During the craziness of Covid, we saw commercial HVAC unit pricing increase as much as 40% in under a year. The supply chain was a nightmare and lead times for new HVAC equipment sometimes stretched to over a year! After Covid, the supply chain and lead times improved somewhat, but nowhere near before-Covid standards, keeping pressures on and costs sky high.
Add to that the 2023 government-required efficiency standards changes that not only changed the efficiency requirements, but they way they had to be measured, causing manu
facturers to totally have to re-tool their development departments to hit these new goals.
And top that all of with a forced move to new flammable A2L and propane refrigerants triggered by the AIM Act, and you’ve got yourself a perfect storm of price increases.
If manufacturers tried to manage this chaos with price fixing, it’s adding insult to injury for building owners who ultimately are the ones who absorb these costs.
Where do HVAC Contractors Fit in?
A common misconception is that contractors set HVAC equipment prices. We do not. Manufacturers determine equipment pricing.
Contractors handle HVAC system selection, installation, maintenance and service. Our role is to help you select the right system for your needs, helping you navigate system design complexity, evaluate alternatives and look at long-term lifecycle cost for your building and operations.
Your HVAC contractor should provide you with an explanation of why they selected a particular equipment design and manufacturer, along with other possibilities and options to consider, detailing the pros and cons of each, so that you can make the best decision not just for today’s upfront costs, but for the entire lifecycle of your equipment. Though they do not control the equipment pricing, they can be your partner in finding the best system for the best available price.
What Building Owners Should Do Now
Regardless of whether or not this lawsuit has any validity, the fact is that HVAC equipment costs have risen significantly, and may continue to do so. Here’s how you can make sure you are prepared:
- Review upcoming capital projects with updated cost assumptions
- Higher unit replacement costs may mean delayed replacement. Focus on a strong preventive maintenance plan to keep existing equipment performing efficiently and extending its lifespan
- Ask contractor for clear, detailed pricing breakdowns for greater transparency in replacement quotes
- Ask contractor to evaluate multiple system and manufacturer options
- Prioritize long-term performance and reliability over short-term savings
The Bottom Line
The outcome of the HVAC lawsuit will take time to resolve—but the need for greater transparency, more options, and a stronger partnership with your contractor is key. Partnering with a contractor who prioritizes your needs, delivers value, quality, performance, and reliability is the best way to manage risk and protect your investment for the long-term