Comparing furnace quotes without guessing

What should a furnace replacement quote include?

Ask for a written quote on letterhead, not a verbal figure or a one-line email. It should list the make, model number and efficiency rating of the furnace, the blower type (single-stage, two-stage or variable speed), and the output capacity. Without the model number you cannot check the specifications or the warranty later.

Then look for the work around the box. Venting and combustion air, a new condensate drain and neutralizer for a high-efficiency unit, gas piping changes, electrical work, a new thermostat, a filter cabinet, and removal of the old unit should each appear as an item or be stated as included. A line that just says "install furnace" hides most of the decisions that make one quote cheaper than another.

The quote should also state who pulls the permit. In most provinces a gas appliance replacement needs a permit and an inspection, and the contractor should hold the right gas licence for your province. Your local safety authority or municipality can confirm what applies.

Does the quote show how the furnace was sized?

Furnace size is a heat loss question, not a matter of replacing like with like. A house that has had new windows, extra attic insulation or air sealing since the old furnace went in often needs a smaller unit than the one it has. An oversized furnace short-cycles, wears faster and can leave rooms uneven.

A careful contractor measures the house or runs a room-by-room heat loss calculation, and will tell you the result in kW or BTU per hour for your design temperature. A quote that says "we always put in a 100,000 BTU" is a flag. If you are unsure, an energy audit gives you an independent number to hold the quotes against, and the insulation priorities guide covers what to fix first if the load is high.

Duct condition matters as well. Ask whether the quote includes a check of static pressure and a note on any undersized or leaking duct runs. A new furnace on poor ducts will not deliver what the efficiency label promises.

What are the red flags in a furnace quote?

• A price offered only if you sign today, or a discount that expires the same evening.
• No model number, no written warranty terms, or "lifetime" wording with no definition of what is covered and who pays labour.
• Sizing by square footage alone, or by the size of the old unit.
• No mention of a permit, or a suggestion that one is not needed.
• Financing presented before the equipment is described, with no cash price shown separately.
• A single option only. Most reputable contractors offer a basic and a better choice and explain the difference.

Rental or lease contracts deserve their own caution. Ask for the total you would pay over the full term, the buyout terms, and what happens to the contract if you sell the house. Compare that against a purchase quote before deciding.

How do I compare three quotes side by side?

Make a simple table with one column per contractor and one row per item: model, efficiency, stages, capacity, venting, gas work, electrical, thermostat, permit, disposal, labour warranty, parts warranty, start date. Fill in only what each quote states in writing. The empty cells are the questions to send back.

Equal specification is the point. A mid-efficiency single-stage unit and a two-stage condensing unit are different products, so a lower total can simply mean a lower grade. Prices vary by region, season and the state of the existing venting, so your own quotes decide, not a rule of thumb. Our guide to furnace replacement cost drivers explains why the ranges are wide.

It is also worth asking each contractor whether a heat pump or a hybrid setup suits your house. Even if you stay with gas, the answer tells you how much they know about the alternatives. See heat pump vs furnace for the operating-cost logic, and dual-fuel systems if you want to keep a furnace as backup.

Which questions should I ask before signing?

1. What heat loss figure did you use, and how did you get it?
2. Is the quote for the exact model and options written here?
3. Who applies for the permit and arranges the inspection?
4. What does the labour warranty cover, and for how many years?
5. Are there rebates or utility programs that apply, and does the quote reflect them? Check the Government of Canada energy-efficiency pages, your provincial energy ministry and your gas or electric utility for current terms.
6. What is the lead time, and what happens if a part is delayed in January?

Houses built to R-2000 levels, like the 52 homes at Drake Landing, show how far a tight, well-insulated envelope can cut the heating load. That is the same logic: size the equipment to a measured load, not to the old nameplate.

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