Diagnosing the Failed Compressor

Picture this scenario: It's the end of a long day, and you arrive at your final call to find a malfunctioning HVAC unit. You hope it's a simple issue like a faulty capacitor, but after testing, you realize the compressor may be the culprit. To confirm this, several crucial checks need to be performed.

1. Verify High Voltage and Capacitor: Check the high voltage from the contactor, ensuring it meets specifications. Additionally, ensure the capacitor produces the correct microfarads stated on the capacitor by measuring with a multimeter.

2. Assess Compressor Windings: For permanent split capacitance (PSC) compressors, measure the ohm values of the common, run, and start windings. The sum of the ohm values from common to run and common to start should match the run to start reading. For three-phase compressors, all windings should have similar ohm values.

3. Test for Resistance to Ground: Check the resistance between each compressor pin and ground using a multimeter. Any reading less than one megaohm indicates an electrical failure. Consider using a megohmmeter for more accurate results.

4. Amp Draw and Locked Rotor Amp Rating: Compare the measured amp draw of the compressor to the locked rotor amp rating stated on the unit's data plate. If the amp draw exceeds the rating, the compressor has failed to start.

Determining the Cause of Failure

While electrical tests can identify compressor issues, mechanical failures also occur. To determine if the compressor has mechanically failed, follow these steps:

1. Confirm Proper Voltage and Windings: Ensure the compressor receives the correct voltage, the windings are within manufacturer specifications, and there is no path to ground.

2. Check Start Components: Verify that the start components are functioning correctly, as a faulty component can prevent the compressor from starting.

3. Assess Temperature Change: Measure the temperature difference between the compressor's inlet and discharge pipes. If the temperatures are similar, it indicates compressor bypassing or internal mechanical issues.

4. Verify Phasing (for Three-Phase Compressors): Check the phasing using a phase meter in commercial units. Switching two incoming power wires can help identify if the compressor fails due to out-of-phase supply power.

The Wrap Up

By diligently performing these diagnostic tests and investigations, HVAC technicians can accurately determine the causes of compressor failures. Understanding electrical and mechanical aspects allows for better decision-making when replacing compressors, reducing callbacks, and ensuring customer satisfaction. Remember, thorough compressor autopsies are crucial to maintaining the integrity of HVAC systems and preserving professional reputations.

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This article is adapted from the CE HVAC Tech Tips podcast hosted by CE Customer Assurance Managers. Available on Apple Podcasts and Spotify.

Jack Cauffman and Brooks Whitson

Note: All the information shared in this article is intended for licensed HVAC professionals. Only trained and qualified personnel should design, install, repair, and service HVAC systems and equipment. All national standards and safety codes must be followed when designing, installing, repairing, and servicing HVAC systems and equipment. The Contractor is responsible for meeting local codes, standards, and ordinances.

Source: Carrier Enterprise

TALLAHASSEE, Fla. — Florida’s attorney general, a steadfast ally of Gov. Ron DeSantis, on Wednesday kicked off a new legal fight against the Biden administration that centers around a contentious new law regulating unions that the governor has boasted about on the presidential campaign trail.

Attorney General Ashley Moody filed a federal lawsuit in Fort Lauderdale that asserts top White House officials — including Transportation Secretary Pete Buttigieg — are violating federal law because they are threatening to withhold hundreds of millions in federal grants unless a state panel grants waivers to Florida’s new union law.

“Florida passed laws to protect workers from being strong-armed by unions,” said Moody in a statement. “Biden, intent on driving our country into the ground, continues to try to force states to implement his bad policies.”

Moody, who endorsed DeSantis’ bid for president, has engaged in a long-running series of battles with the Biden administration, especially over immigration. Moody is widely viewed as a potential 2026 candidate for governor.

DeSantis made Florida’s new union law one of his top priorities during the 2023 session that was supposed to be a springboard to his presidential campaign — an effort that has recently seen him drop to third place or worse in some polls. The law, which took effect on July 1, includes including a prohibition on public employers from deducting union dues from employee paychecks and making it easier to decertify unions.

Critics said the law was aimed at DeSantis’ political enemies — such as Florida’s teacher union — since the provisions did not apply to unions that represent law-enforcement officers and firefighters.

But this latest confrontation was foretold months ago. The bill was changed on the Senate floor to include a potential carve-out from the law for mass transit workers after questions were raised about whether the legislation conflicted with federal labor laws that could put federal funding at risk.

Since the law took effect, local transportation authorities and local governments have asked the state’s Public Employee Relations Commission for waivers from the law after federal officials contended that Florida’s new law conflicts with federal requirements.

The commission, which is overseen by DeSantis appointees, agreed to issue waivers but made them time-limited and conditional. But a top official with the Department of Labor said those types of waivers did not comply. In a late August letter to the state commission, the Florida Public Transportation Association said that more than $800 million in federal funding for mass transit systems was in jeopardy if the commission did not hand out permanent waivers.

Moody’s new lawsuit was filed against the Department of Transportation, the Department of Labor and the Federal Transit Administration as well as top officials in those agencies. It asks a federal judge to block the agencies from withholding federal grants as well as declare unconstitutional the part of the federal law the Department of Labor is relying on to question Florida’s law.

A spokesperson for Buttigieg and the Department of Transportation declined to comment on “ongoing litigation.”

Meanwhile, lawsuits have been filed against Florida’s union law in state courts, including one that alleged it violated collective bargaining rights guaranteed in the state constitution. A circuit judge on Tuesday threw out a lawsuit filed by three South Florida public employee unions and three union members but Judge J. Lee Marsh did leave the door open for the lawsuit to be refiled.

Source: POLITICO Pro

Putting a lien on a house in Florida can be a complex and intimidating process, but it is an effective way to secure payment for services rendered or debts owed. Whether you are a contractor seeking payment for construction work or an individual seeking repayment of a loan, understanding the steps involved is crucial. In this article, we will provide a step-by-step guide on how to put a lien on a house in Florida, along with five interesting facts about liens. Additionally, we will address fourteen common questions related to this topic.

Section 1: How to Put a Lien on a House in Florida

Step 1: Understand the Lien Laws

Before proceeding with placing a lien on a house in Florida, it is essential to familiarize yourself with the state’s lien laws. These laws outline the requirements and procedures that must be followed to ensure a valid and enforceable lien.

Step 2: Provide Preliminary Notice

Florida requires that a preliminary notice be provided to the property owner before filing a lien. This notice should contain information about the work performed or services rendered, along with the amount owed.

Step 3: File a Claim of Lien

To officially put a lien on a house, you must file a Claim of Lien form with the county clerk’s office in the county where the property is located. This document should include details about the property owner, a description of the work performed, the amount owed, and other necessary information.

Step 4: Serve the Lien on the Property Owner

Once the Claim of Lien has been filed, you must serve a copy of the lien on the property owner within fifteen days. This can be done through certified mail with return receipt requested or by hand delivery.

Step 5: Enforce the Lien

If the property owner fails to respond or settle the debt within the specified timeframe, you may proceed with enforcing the lien. This typically involves filing a lawsuit to obtain a judgment against the property owner, which can result in the forced sale of the property to satisfy the debt.

Section 2: 5 Interesting Facts about Liens

1. Types of Liens

There are various types of liens, including mechanic’s liens, tax liens, judgment liens, and mortgage liens. Each type serves a different purpose and carries different rights and obligations.

2. Priority of Liens

In Florida, the priority of liens is determined by the date they are recorded. Liens recorded earlier generally have a higher priority, which means they will be satisfied first in the event of a property sale or foreclosure.

3. Homestead Exemption

Florida has a homestead exemption that protects a certain amount of equity in a primary residence from being seized to satisfy a debt. This exemption can complicate the process of enforcing a lien on a property.

4. Notice of Commencement

In many cases, before starting a construction project in Florida, a Notice of Commencement must be filed. This notice provides information about the project and allows potential lien claimants to protect their rights.

5. Time Limitations

Florida has strict time limitations for filing liens. Generally, a Claim of Lien must be filed within 90 days of the last day of work or services provided. Failure to meet this deadline could result in the loss of lien rights.

Section 3: 14 Common Questions about Liens in Florida

1. Can I put a lien on a property for any type of debt?

No, liens are typically reserved for debts related to services performed or materials provided for the improvement of the property.

See also What Does It Mean When Social Security Is in the Payment Center

2. Can I put a lien on a property if I subcontracted the work?

Yes, subcontractors have the right to file a lien if they have not been paid for their services.

3. How long does a lien remain valid in Florida?

Generally, a lien in Florida is valid for one year from the date it is recorded unless an action to enforce the lien is initiated within that period.

4. Can I foreclose on a property if I have a lien?

Yes, if the property owner fails to satisfy the debt within the specified timeframe, you may initiate a foreclosure action to force the sale of the property.

5. Can I negotiate a settlement instead of enforcing the lien?

Yes, it is often beneficial to explore settlement options before proceeding with legal action. In some cases, property owners may be willing to negotiate a payment plan or settlement amount.

6. Can I put a lien on a property if there is an existing mortgage?

Yes, a lien can be placed on a property even if there is an existing mortgage. However, the mortgage holder generally has priority over other lienholders.

7. Can I file a lien on a property if I am not a licensed contractor?

Yes, both licensed and unlicensed contractors have the right to file a lien in Florida. However, unlicensed contractors may face limitations or additional requirements.

8. Can I file a lien on a property if I did not provide a written contract?

Yes, a written contract is not always required to file a lien. However, having a written agreement can strengthen your case.

9. Can I remove a lien once it has been filed?

Yes, a lien can be removed if the underlying debt is satisfied or resolved. This can be done through a lien release or by court order.

10. Can I file a lien on a property if I did not provide a Notice of Commencement?

Yes, not providing a Notice of Commencement may limit your rights in some cases but does not necessarily prevent you from filing a lien.

11. Can a lien be transferred to another property if the original property is sold?

No, a lien is specific to the property on which it was filed. If the property is sold, the lien does not automatically transfer to the new owner.

12. Can I file a lien on a property if I am an unpaid subcontractor of a subcontractor?

In most cases, only those who have a direct contractual relationship with the property owner or the prime contractor have the right to file a lien.

13. Can I file a lien on a property if the property owner files for bankruptcy?

The filing of a bankruptcy petition by the property owner may complicate the enforcement of a lien. Consult with a bankruptcy attorney for guidance in such situations.

14. Can I file a lien if the property owner has died?

Yes, the death of a property owner does not automatically invalidate the lien. The lien can still be enforced against the deceased owner’s estate.

In conclusion, placing a lien on a house in Florida involves understanding the state’s lien laws, providing preliminary notice, filing a Claim of Lien, serving the lien on the property owner, and, if necessary, enforcing the lien through legal action. Remember to consult with a qualified attorney or professional to ensure compliance with Florida’s specific requirements and to protect your rights as a creditor.

Source:

How To Put A Lien On A House In Florida | INVESTOR TIMES

The rights and responsibilities of a subcontractor were under scrutiny in a recent case (Katz v. FM Construction, Case No. 19-27439) reviewed by the U.S. Bankruptcy Court, District of New Jersey. This case is an interesting example of issues involved with third-party complaints and counterclaims, further complicated by one party being in Chapter 11.

Background of the Case

Hollister Construction Services, LLC (Hollister), a commercial construction services firm, was doing business with FM Construction Group, LLC (FM), a subcontractor. FM had a master agreement contract with Hollister, which addressed all projects involving both parties. They agreed to execute separate project-specific contracts for particular details on given projects as needed. In September 2017, Hollister signed a construction management contract with the owners of residential buildings in Harrison, New Jersey. Hollister and FM then entered into a project-specific subcontracting agreement. FM agreed to provide specified services to Hollister for that particular project. In September 2019, the project was still underway when Hollister filed for bankruptcy under Chapter 11.

A few months after that filing, in December 2019, Hollister, the property owner, FM, and other subcontractors signed a settlement agreement. According to that agreement, FM would receive a 60% reduction in the fees owed before the filing, but the subcontractor would be fully compensated for work completed after the filing.

As time passed, the project was delayed for several reasons. Therefore, FM could not resume its work. Then Hollister and the owner resolved the issues, amended the settlement agreement, and extended the completion date. However, FM claimed it was not consulted about the contract revisions and never signed the amended agreement. The subcontractor also contended that although it was ready to continue work, the project was not in the necessary condition for it to do so. Eventually, Hollister sent FM a “48 Hour Notice to Perform” letter. It contended that FM failed to perform per the subcontract and the settlement agreement. Hollister then ended the subcontract with FM, noting it was terminated for cause.

As this was going on, Hollister’s bankruptcy case proceeded. The U.S. Bankruptcy Court approved the plan of liquidation and appointed Bernard Katz (Trustee) as the trustee to oversee Hollister’s assets and settle its business. As part of that confirmation, claim holders were not allowed to file claims against Hollister or the Trustee for any issues before the plan’s effective date, April 30, 2021.

After Hollister terminated FM, it hired another subcontractor to complete the work. On January 31, 2022, the Trustee filed a complaint against FM. Its intent was to recover Hollister’s costs for completing FM’s scope of work. Hollister stated the Trustee incurred more than $500,000 above the contract balance to cover FM’s obligations. FM filed a response, and the parties tried mediation, but it was unsuccessful. FM then filed counterclaims against Hollister, as well as a third-party complaint against the property owner.

Specifically, FM accused Hollister of 1) breach of contract, 2) unjust enrichment, 3) breach of implied covenant of good faith and fair dealing, 4) quantum meruit, and 5) declaratory judgment that termination was wrongful and done in bad faith. It also alleged 6) fraudulent inducement. FM’s claims against the owner were similar.

In response, the Trustee filed an opposition to FM’s motion. It then filed a cross-motion through which it sought to enforce the court’s directions and the parties’ agreements. The Trustee stated that FM was bound by the terms of the liquidation plan and the parties’ agreements. Therefore, it contended that FM was precluded from filing any claims for issues before the plan’s effective date. The Trustee went on to assert that FM’s claims should have been barred as a matter of law.

What the Court Decided

In February 2023, the court began by reviewing FM’s claims against the property owner. It considered whether it had the jurisdiction to address claims between FM and the owner, given that it is a bankruptcy court and these parties were non-debtors. It determined it did not have jurisdiction in the matter since the third-party complaint was not directly related to the liquidation plan. Therefore, it denied FM’s motion, with prejudice.

Next, the court reviewed the counterclaims against Hollister. Regarding the fraudulent inducement claim, FM alleged that Hollister knew it could not manage the project. However, according to the Federal Rule of Civil Procedure 9(b), there is a heightened pleading standard for fraud accusations, and specific details must be provided. Since those specifics were not offered, the court denied that claim, without prejudice.

As for the other five claims, since they accrued prior to the plan date, the court denied them as affirmative claims. However, during the court proceeding, FM explained it was not seeking claims that “go beyond its preserved setoff or recoupment rights.” The court acknowledged that the confirmation order and liquidation plan allow for setoff and recoupment rights. In this case, setoff was not applicable, but recoupment was. Therefore, FM’s motion regarding claims 1 through 5 was granted, but it was limited to its right to recoupment “as a means to extinguish or reduce the Trustee’s recovery herein.” The Trustee’s cross-motion was denied.

Final Thoughts

It isn’t every day that a subcontractor finds itself in a situation like this one—a delayed project, questionable termination, and bankruptcy for the other party. However, it is interesting to understand what the court granted and what it did not. The fraudulent inducement claim did not hold because FM lacked the documentation and specifics. As always, paper wins the day. Had FM kept meticulous records and provided them to the court, the decision might have been different. But in the end, it was still able to pursue recoupment. So even if the battle seems to be uphill and unwinnable, it is often worth the fight.

The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.

Trent Cotney is a partner and Construction Practice Group Leader at the law firm of Adams and Reese LLP a. You can reach him at trent.cotney@arlaw.com or call 866.303.5868.

Trent Cotney

Article provided by: https://acprosite.com/u-s-bankruptcy-court-rules-on-subcontractor-counterclaims-by-trent-cotney/

HVAC industry groups are hailing federal legislation that would define nationwide deadlines for meeting new energy-efficiency requirements based on the date equipment is manufactured or imported rather than the date it’s installed.

The SMART Energy Efficiency Standards Act was introduced this summer by Rep. Debbie Lesko, R-Arizona, who represents several communities in the Phoenix area.

Her one-sentence proposal would amend the Energy Policy and Conservation Act so that the U.S. Department of Energy (DOE), in updating efficiency requirements, would set a date by which all newly manufactured or newly imported products must meet or exceed new standards. Current rules allow for date-of-installation deadlines, which critics say are burdensome for distributors and contractors who may risk being stuck with equipment that cannot be legally installed in their region of the country but met efficiency requirements at the time it was produced.

“Regional HVAC standards are the only Department of Energy efficiency standard that uses date of installation to determine compliance,” said Talbot Gee, CEO of Heating Air-Conditioning & Refrigeration Distributors International (HARDI). “Distributors are asked to risk millions of dollars to have the products the market demands in inventory, and this flaw in the statute directly penalizes HVAC distributors and ultimately hurts consumers while doing nothing to actually improve energy efficiency or carbon emission savings.”

“The bill is a common-sense solution to an unnecessary problem,” said Chris Czarnecki, director of government relations and advocacy at Air Conditioning Contractors of America (ACCA). “It simply changes compliance from ‘date of installation’ to ‘date of manufacture,’ meaning that if it’s passed into law, any system that was manufactured in accordance with guidelines in place at the time could be legally installed anywhere in the country.”

Czarnecki and Alex Ayers, HARDI’s government affairs director, both said their organizations will lobby in favor of Lesko’s proposal. The bill is currently in the House Committee on Energy and Commerce, of which Lesko is a member.

The 2023 regional DOE energy-efficiency requirements that kicked in on January 1 defined compliance deadlines, for a/c products, differently in different parts of the country: Those manufactured through 2022 that met the requirements in place at that time can continue to be installed in the North, but in states in the Southeast and Southwest, a/c units installed after December 31, 2022 had to meet or exceed the new standards.

That created inefficiencies, critics say.

“The (stranded) equipment is still installed, but now with extra trucking to get it to the new location,” said Ayers. “Based on our calculation, if a single unit is transported 600 miles, which is often less miles than it takes to leave the region where it cannot be installed, the amount of fuel used to transport it (represents) more energy than the entire lifetime energy savings of the unit.”

Lesko’s bill was co-sponsored by Rep. Robert Latta, R-Ohio, who represents several communities in Northern Ohio.

“Regional standards created by the Department of Energy set up two different compliance dates, which created unnecessary confusion and burdened distributors, who were left with unusable products,” Lesko said in a press release. “While our nation is facing supply-chain and cost-of-living crises, we should not be making it harder for consumers to obtain appliances.”

Samantha Slater, vice president of government affairs at The Air-Conditioning, Heating, and Refrigeration Institute (AHRI), said the industry has been pushing for such legislation for some time, and last came close to getting a version passed in 2014.

“It just didn’t get across the finish line,” she said. “It was so close.”

Slater said the measure’s best chance this time around might come if it’s tacked onto a larger bill toward the end of the year.

“It’s not something that’s going to move on a stand-alone basis,” she said. “It’s usually included in a larger energy package.”

https://digital.bnpmedia.com/publication/?i=802471&article_id=4643905&view=articleBrowser

What HVAC Professionals Need to Know

Residential heating and cooling technologies are changing

In 2022, Americans bought more than 4 million heat pumps — compared to approximately 3.9 million gas furnace purchases — pointing contractors toward a shift in customer sentiment: Households are looking toward energy-efficient heating and cooling alternatives.

But aside from the clear deviation from traditional technologies by way of purchasing data and trends, local energy providers and governments are taking part through updated rebate structures to new construction natural gas bans in states like New York and California. Notably, Chicago’s largest energy provider, ComEd, has foregone central air conditioning rebates in a strategic effort to direct consumers to climate-friendly options as of July 1, 2023. The utility certainly won’t be the last to do so.

In the coming months and years, local bodies will continue to align with the federal government’s push toward electrified technologies with legislation such as the Inflation Reduction Act (IRA) to lower household energy costs. HVAC professionals should be adept and in tune with these industry-altering transformations, so as not to lag and stay stagnant in a space that is inherently and undoubtedly progressing.

So, let’s break down what recent changes and existing rebates mean.

Residential Heating and Cooling Technologies Are Changing

Heat pumps are up to three times more efficient than gas furnaces for heating and are able to cool homes as well. Rather than generating heat, heat pumps transfer it and therefore use less energy than a traditional electric or gas system. And for contractors, dual-purposed heat pumps allow for ease of installation without the need for two separate heating and cooling units and an effortlessly streamlined process.

When 69% of U.S. adults are in favor of the U.S. taking steps to be carbon neutral by 2050, the assumption that heat pumps and similar systems will dominate the industry landscape in the coming years is not very far-fetched.

Not only that, incentives and rebates are playing a monumental role in the shift to energy-friendly technologies.

New Incentives Spearhead a Shift

To meet the U.S. government’s goal of a net-zero emissions economy by 2050, incentives are in place to aid homeowners in their efforts to help achieve this benchmark. The IRA allocates more than $20 billion for direct spending on clean home upgrades. Through the IRA, states can offer up to $8,000 in rebates for electrified products based on income, and consumers are eligible for federal tax credits of up to $2,000.

Chicago’s ComEd offers up to $2,000 in rebates for air source heat pumps, and up to $1,350 for mini-split heat pumps, heating and cooling solutions that don’t require ductwork but rather use outdoor compressors and indoor air-handling units.

Along with Chicago, local and state governments in New York, Colorado, Maine, and Massachusetts are offering utility incentives to help in modernizing and updating current systems. Maine, in particular, has surpassed its target of 100,000 new heat pumps installed by 2025 — having given out rebates for 116,000 heat pumps.

As these incentives, and others surely upcoming, continue to pass through, American households will be inclined to replace older, inefficient systems, leaving savvy contractors eager to aid in the process to reap the benefits.

Aligning with a Developing System Is Key

Being up to date on what incentives are available in their area, as well as consumer purchasing trends, will position HVAC professionals to go to market smartly and purposefully. The following guidelines will help in that process:

Optimize new construction to allow for updated, energy-efficient systems. Be sure space is appropriately allocated, and the space will be able to support heat pumps, mini splits, and other emerging technologies. And pro tip: Make sure to have a surefire way to maintain documentation of the systems installed; it will be important when applying for incentives.

Continue to learn about local incentives and invest in continued training. Researching what incentives are offered in the communities in which the service is being performed will equip the installer with the knowledge needed to provide optimal, knowledgeable customer service. Investing in training programs and certifications, on the other hand, allows HVAC teams to garner the expertise needed to be leaders in the field.

Educate customers. To play a role in climate-neutrality and the planet’s sustainability journey, educate customers on the benefits of energy-efficient technologies.

Work with experts. Consider conversing with renewable energy experts to gain additional skills and strategies on how to play a role in sustainable compliance.

By following these steps, HVAC professionals can continue to play a vital part in this exciting and electrified future of heating and cooling solutions.

https://www.achrnews.com/articles/153495-energy-efficient-hvac-rebates-on-the-rise-what-hvac-professionals-need-to-know

Get Ready For 40% Cut In HFC Production in 2024

HVACR contractors need to plan for possible refrigerant shortages and price hikes

As most already know, the AIM Act, which passed in December 2020, will reduce HFC refrigerant production by 85% by 2036. The initial reduction began last year with a 10% reduction in HFC production, but next year there will be an additional 30% cut, which will significantly impact the HVACR industry. In fact, experts are predicting that the steep reduction could result in shortages of popular refrigerants such as R-410A and R-134a, as well as a sharp increase in refrigerant prices.

Not surprisingly, the large cut in HFC production in 2024 could profoundly affect HVACR contractors, so in order to minimize disruptions in this shifting landscape, it is crucial to prepare now.

Price Hikes and Shortages

The AIM Act accelerated the phasedown of virgin HFCs, and as a result, there was little time for the HVACR industry as a whole to prepare for the steep stepdown in 2024, said Kate Houghton, vice president of sales and marketing at Hudson Technologies.

“This means contractors will likely be affected in several ways: limited access to certain high-GWP refrigerants such as R-404A, allocations of refrigerants based on past buying patterns from suppliers, and increased pricing and general uncertainty in the marketplace,” she said. “All of these could affect HVACR contractors in their daily business and cause disruption.”

Chris Forth, vice president of regulatory, codes, and environmental affairs at Johnson Controls noted, “Because this next step in the HFC phasedown is a substantially larger drop than we experienced in 2022, we anticipate the industry may feel a heightened awareness of supply limitations. With any decrease in supply, an increase in price could follow, making HFCs like R-410A more difficult to obtain.”

That’s not to say that contractors should panic, but they should pay attention to the availability and cost of refrigerant next year.

“It’s definitely something to be aware of,” said Jennifer Butsch, director of regulatory affairs at Copeland. “The baseline was calculated a decade ago, making this 30% reduction even more significant versus 2021 production and consumption quantities. Because the demand of HFCs in new equipment is proposed to take effect in later years (2025–2026), it’s questionable whether there will be enough existing refrigerants — especially those with high GWP — and/or if we may see price increases similar to what Europe has experienced. Increased prices on existing fluids or pockets of shortage could impact the repair-versus-replace dynamic.”

While contractors shouldn’t necessarily worry, they should be prepared for the changes that are coming, said Don Gillis, senior technical trainer at The Chemours Company.

“Preparation means training, which is key, and this should happen sooner rather than later,” he said. “Secondly, contractors have to be tuned into refrigerant reclaiming efforts. These will be bigger than they’ve ever been in the history of our trade and become increasingly important the more phasedowns reduce HFC consumption and production. We know that low supply and high demand drive prices up. It will be up to the contractor to stay aware of market changes and make the best decision for the end user, in terms of when to retrofit or replace equipment to run on new-generation HFO refrigerants.”

Get Ready

As Gillis mentioned above, in order to get ready for the refrigerant transition, contractors should be making sure that their technicians are educated on the new mildly flammable A2L refrigerants and are receiving proper training for working with them.

“I cannot emphasize enough the importance of in-house education for your technicians,” said Gillis. “There is a lot of data out there demonstrating that companies that send their technicians to training have a higher success rate than those that do not.”

Butsch also stressed the importance of receiving training in order to be familiar with lower-GWP options for both comfort cooling and commercial refrigeration equipment, including A2L, A3, and CO2 systems. In addition, she advises contractors to verify that they have the proper tools to service lower-GWP systems.

Forth agreed that training in the safe use, handling, transportation, and storage of new low-GWP A2Ls is paramount to a successful transition. He advised contractors to lean on reputable resources from manufacturers like Johnson Controls, as well as industry organizations such as ACCA, NATE, and ESCO Group.

“Training is available now, and it is important for contractors to begin expanding their knowledge before new equipment begins to enter the market, to help prepare for a successful transition,” he said.

Contractors will also want to review their EPA Section 608 licensing to be sure they are up to date with current certification and licensing requirements, said Forth. In addition, he noted that they should monitor the EPA for impending updates, which are expected to be released in the coming months as part of the AIM Act.

“It's also important for contractors to understand that, unlike with previous transitions, there is currently no EPA Significant New Alternatives Policy (SNAP) approved replacement for R-410A, that is classified ASHRAE as a Class 1, non-flame propagating fluid, and therefore no known drop-in refrigerant replacement for existing R-410A equipment,” said Forth.

Recover and Reclaim

Another significant way contractors can prepare for next year’s HFC production cut is to make sure that refrigerant is always properly recovered and reclaimed. As Taylor Ferranti, commercial vice president of refrigerant management at A-Gas noted, there is no way to reclaim refrigerants if they are not recovered in the first place.

RAPID RECOVERY: An A-Gas Rapid Recovery field service technician recovers refrigerant from a food retailer in Baltimore, Maryland. (Courtesy of A-Gas)

“There are solutions to help with jobsite refrigerant recovery, including A-Gas Rapid Recovery’s on-site high-speed refrigerant recovery service,” he said. “Our buyback program, among others out there, will purchase recovered refrigerants from HVACR contractors, which we then reprocess to the AHRI-700 standard. Keeping that continuous stream of recovered refrigerants to reclaimers is key.”

Martin Söderlund, residential aftermarket segment leader at Trane Residential agreed, urging contractors to “reclaim, reclaim, reclaim!” He noted that if more HFCs are not recovered and reclaimed, there could be a shortage greater than the demand required for servicing the current install base down the line.

“It’s the future supply of HFCs,” he said. “Our Trane Supply stores are ready to help any technician with our easy, hassle-free process. When customers bring their used refrigerant to Trane Supply stores, they can exchange full cylinders for empty ones and receive credit for certain refrigerants to use against future refrigerant purchases. In 2022, Trane Supply recovered more than 203,000 pounds of refrigerant from customers in 123 Trane Supply stores across the U.S.”

Still, not enough refrigerant is being recovered and reclaimed. Based on data released by the EPA, less than 2% of HFCs are recovered and reclaimed on an annual basis, said Houghton. That’s because until recently, contractors may have been more focused on the recovery of R-22 and CFCs, as these have been the most valuable refrigerants.

“Recently, recovered HFCs have dramatically increased in value,” she said. “Increased focus on HFC recovery will be needed to bridge the expected shortfall in virgin HFC availability in 2024 and beyond. Moreover, with more regulatory requirements demanding their use, reclaimed refrigerants will become more valuable.”

Forth believes that recovery rates may have been limited up until now, particularly with small-charge residential systems, because the process can be time intensive, and contractors may not always feel that the value of the recovered gas was economically advantageous.

“Updating inefficient recovery equipment can help to improve evacuation rates to reduce the time invested in recovering HFC gas,” said Forth. “And as restrictions on R-410A manufacturing are put in place, the value of reclaim will increase significantly.”

Ferranti added that contractors should make sure that their supplier has an active and robust reclaim program with their refrigerant supplier. “If your supplier does not offer reclaimed refrigerants or they don’t participate in a program with their refrigerant supplier, you may want to look at other options or ask them to participate in a reclaim program,” he said. “Otherwise, you may run the risk that they will not have the products you need to support your customers.”

The HVACR industry also needs to do a better job of educating technicians — both in trade schools and on the job — about the importance of reclaiming refrigerants, said Gillis.

“Contractors have a responsibility to make sure their technicians receive proper training — by recovery manufacturers — on how to recover refrigerants,” he said. “A contractor should never assume that just because they issued a technician a recovery machine, they know how to use it properly. I cannot say it enough: Training, training, training! Training is everything.”

Survey Shows Contractors’ Marketing Gaps
Experts offer tips for meeting residential HVAC customers where they’re most likely to look

A survey of HVAC contractors and homeowners found significant gaps between the places that contractors tend to focus marketing efforts and the ways consumers are most likely to search for HVAC service providers.

The survey found, for example, that while 47% of contractors advertise via local print media such as newspapers, magazines, and mailers, only 22% of homeowners search for a contractor using print media. And while 29% of homeowners reported looking to home-improvement retailers to find a contractor, only 13% of contractors market through those retailers, the survey found.

The survey was conducted in March by Clear Seas Research, the research unit of BNP Media, parent company of The ACHR NEWS. It also included questions on pricing, HVAC equipment, the importance of online reviews, the factors that go into HVAC purchasing decisions, and other issues surrounding contractor-customer relationships.

Three HVAC marketing experts who looked at the survey’s findings on the marketing gaps offered contractors tips on changing up their strategies to better match how consumers are seeking HVAC services, while also customizing those strategies to fit their business plans and account for the differences between markets.

Wherever homeowners choose to look is where contractors, marketing-wise, need to be, said Crystal Williams, founder of Lemon Seed Marketing.

“This is not a one-trick pony,” Williams said. “You’ve got to have a full gamut of strategies deployed.”

“There is no silver bullet” in HVAC marketing, said Colleen Keyworth, director of sales and marketing at Online Access Inc. It takes “blood, sweat, and tears” in Keyworth’s words: an understanding of the target audience, a multi-faceted approach, and lots of local engagement.

“It takes work when you’re smaller,” Keyworth said. “There’s not a lot of stuff that you can just pull a lever on.”

Broadly speaking, the survey found that consumers turn to the internet to look for HVAC contractors at a greater levels than contractors market themselves there. Some 71% of homeowners reported using word-of-mouth recommendations, including from social media, to find contractors, but only 53% of contractors employ social media, according to the survey. (Some 43% of contractors reported marketing via non-social-media word-of-mouth.)

Marketing professionals recognize that contractors are short on time, and that social media adds another chore to lengthy to-do lists.

“If they’ve got to choose between posting to social media and trying to find parts and equipment during rush times, they can’t choose social media,” Williams said.

“Contractors get very much distracted by all the other stuff they have to do,” said Keyworth.

Williams recommended that contractors new to social media pick one platform, post consistently ― three or four times a week ― and get good at it before expanding their reach.

“Just start gradually, slowly but surely getting yourself into the groove of it,” she said. Consider delegating social media to a customer service representative, a dispatcher or even a technician for a bit of extra pay, she said. “There’re ways to get it done,” Williams said. “It’s just going to take some intentionality and some scheduling.”

Additionally, the survey found that 29% of homeowners use home services websites, such as Angie or Home Advisor, while only 23% of contractors advertise on such websites. And only 32% of contractors said they use Google Ads for marketing.

The survey’s findings on that internet disconnect weren’t surprising to Paul Redman, vice president of sales at Contractor Commerce. But employing the internet for marketing, and even paying for it, is now “non-negotiable,” Redman added.

“Contractors must have a 365-day approach to improving, managing, and executing SEO (search engine optimization) and paid search,” said Redman. “In a perfect world, you organically appear to your ideal customer with enough frequency that ads are not too necessary, but we do not live in a perfect world.”

Williams said contractors’ bias toward their own tastes may account for part of the marketing gap when it comes to using social media.

“We tend to use things that look good to us, even when we’re not in the target market, you know, so we tend to market to our own selves,” she said. “And that’s not always what we need to be doing.”

Here are some other tips for residential HVAC contractors who are looking to tweak their marketing efforts to better meet their target audiences:

• Use social media personably by, for example, posting a photo of your team, wishing an employee a happy birthday, and acknowledging the employee of the month.
  “Those tools are designed to build a relationship with people in your target market,” Williams said. “People do business with people that they like and know.”
  Social media posts, Redman said, need to connect with people in an authentic way instead of a transactional one.
  “You have to find a way for your brand to bring value to a community (online) and be OK with never getting a single lead,” he said. “The intent has to be to build a brand and play the long game.”
• When it comes to paid internet advertising, Williams said, “test and modify, test and modify, very, very consistently.”
• Consider — carefully — marketing through home-improvement retailers, which often have “preferred contractor” lists that they share with customers. While that works for some contractors and can provide consistent leads, it also inserts a middleman into the process, can deprive a contractor of the opportunity to sell the equipment as well as the installation, and can get in the way of developing direct, long-term relationships with homeowners, said Keyworth.
• Don’t overlook community engagement. Local charities, social groups, and clubs like the Rotary can open a lot of doors to word-of-mouth referrals, Keyworth said.
• Keep it local with print. Although print newspapers are not as prevalent as they once were, Williams said, print ads can still work in niche publications, such as homeowners association newsletters, church bulletins, and community magazines.

“Go into the areas of your cities that you really want to own, and see if they have a country club newsletter, an HOA newsletter,” she said. “That’s where I would move my print media.”

https://www.achrnews.com/articles/153359-survey-shows-contractors-marketing-gaps

The U.S. Department of Labor (DOL) recently announced the issuance of the final rule, Updating the Davis-Bacon and Related Acts (DBRA), which it says will “better reflect the needs of construction workers on federal construction investments.” The DBRA have not been significantly updated in more than 40 years.

The Davis-Bacon Act is a United States federal law that was enacted in 1931 and requires contractors and subcontractors on federal government construction projects to pay their laborers and mechanics the prevailing wages and fringe benefits in the local area. The Act applies to each federal government or District of Columbia contract in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works.

The updated regulation follows a Notice of Proposed Rulemaking on March 18, 2022, which received comments from construction industry and labor stakeholders that helped inform the regulatory updates.

"Modernizing the Davis-Bacon and Related Acts is key to making sure that the jobs being created under the Biden-Harris administration's Investing in America agenda are good jobs, and that workers get the fair wages and benefits they deserve on federally funded constructions projects across the nation," said Julie Su, acting secretary of Labor. "This updated rule will create pathways to the middle class for more families and help level the playing field for high-road employers because companies who exploit their workers, or who don't pay workers fairly, should never have a competitive advantage."

According to DOL, the final rule's& regulatory changes improve the department's ability to administer and enforce DBRA labor standards more effectively and efficiently. These changes include the following:

• Creating new efficiencies in the prevailing wage update system and making sure prevailing wage rates keep up with actual wages which, over time, would mean higher wages for workers;
• Returning to the definition of "prevailing wage" used from 1935 to 1983 to ensure prevailing wages reflect actual wages paid to workers in the local community;
• Periodically updating prevailing wage rates to address out-of-date wage determinations;
• Providing broader authority to adopt state or local wage determinations when certain criteria are met;
• Issuing supplemental rates for key job classifications when no survey data exists;
• Updating the regulatory language to better reflect modern construction practices; and
• Strengthening worker protections and enforcement, including debarment and anti-retaliation provisions.

The DBRA requirements apply to an estimated tens of billions of dollars in federal and federally assisted construction spending each year and provide minimum wage rates for hundreds of thousands of U.S. construction workers. DOL expects a significant increase in the numbers of industry workers due to the historic investments in federally funded construction projects made possible by legislation such as the Infrastructure Investment and Jobs Act.

Industry Reaction

The Sheet Metal and Air Conditioning Contractors' National Association (SMACNA) applauded the DBRA reforms, noting that SMACNA contractors and chapter executives “have long been strong and outspoken advocates for Davis-Bacon regulatory reforms, especially greater enforcement to combat Davis-Bacon contracting violations widely seen as unfair to honest federal bidders competing for infrastructure projects.”

In a written statement, SMACNA noted that, “DOL’s final rule will make the wage determination and verification process far more responsive by giving Department of Labor’s Wage and Hour Administrator the express authority to adopt prevailing wages determined by state and local governments, issue wage determinations for labor classifications where insufficient data was received through the wage survey process and update outdated wage rates. SMACNA most enthusiastically endorses the Department’s return to the 30% rule after decades of harm to the Act. After more than 40 years, restoring the 30% rule for prevailing wages ensures our members are compensated in a way that is consistent with local collectively bargained rates and the real rates paid to the most skilled and qualified apprentices and journey workers in such short supply today, and so badly needed for the complex Federal projects of the future.”

Associated Builders and Contractors (ABC) criticized the update, with Ben Brubeck, vice president of regulatory, labor, and state affairs at ABC, noting that DOL’s final rule “disregards the feedback of ABC contractors, construction industry stakeholders, and thousands of small businesses urging the withdrawal of this unnecessary, costly, and burdensome regulation. Instead, the DOL is moving forward with dramatic changes to prevailing wage regulations, reversing much-needed reforms that were established nearly 40 years ago, and unlawfully increasing the regulatory burden on small businesses, new industries, and public works projects.”

Brubeck added, “With this final rule, the DOL has abandoned any possibility of instituting commonsense reforms to Davis-Bacon regulations to ensure accurate and prompt prevailing wage determinations while providing the regulated community with the clarity needed to deliver high-quality projects at an affordable cost to taxpayers. Instead, the rule makes it much more likely that the DOL will adopt union wage scales at the prevailing wage at a greater frequency than in current practice, which already adopts union wage scales at improbable rates considering just 11.7% of the construction industry is unionized. ABC will now be forced to take appropriate legal action to address the numerous illegal provisions of the final rule and protect our members, and ultimately hard-working taxpayers, from the harmful impacts of this regulation.”

The Associated General Contractors (AGC) of America’s chief executive officer, Stephen E. Sandherr, was also critical, noting that, “a preliminary analysis shows that while more work will be covered, this rulemaking critically missed an opportunity to improve the wage determination process. The 40-year awaited update reverts to the pre-1983 methodology for determining whether a wage rate is prevailing, also referred to as the “30% rule.” Just as proposed, this final rule appears to make it easier on the DOL itself to set prevailing wages with less of the data it already collects, or lack thereof.

“AGC holds that the DOL’s almost exclusive reliance on voluntary surveys to produce and update wage determinations has created a compensation system for Davis-Bacon covered construction that poorly reflects the construction labor market in many parts of the country,” added Sandherr. “AGC recommended the DOL should instead focus on how to collect more accurate data, instead of being able to rely on less, or even at times inappropriate data, to determine wages that are truly prevailing.”

The final rule will become effective on October 23, 2023. DOL will host two online webinars on September 13 and 14 to provide an overview of the changes to the Davis-Bacon and Related Act Regulations.

August 31, 2023 - Article courtesy of ACHR News

Additional Information:

Final Rule: Updating the Davis-Bacon and Related Acts Regulations | U.S. Department of Labor (dol.gov)

www.federalregister.gov/documents/2023/08/23/2023-17221/updating-the-davis-bacon-and-related-acts-regulations

It is easy while watching the news or talking with neighbors to focus in on the headwinds that are affecting both the U.S. economy and the HVAC market. In fact, it is hard to avoid them.

While inflation is slowing down a bit, it is still at historic highs. Rising costs everywhere means the consumer has less disposable dollars in their pockets. Interest rates being so high means financing has gotten more expensive for homeowners. Every HVAC contractor knows what those factors mean — repair instead of replace.

And, of course, this is all going into an election year, where uncertainly will reign as our friends in Washington, D.C. will somehow find a way to be even less productive. And as well all know … businesses hate uncertainty.

But that does not necessarily mean all is lost for the HVAC contractor. There are plenty of signs to show that, in fact, there are good days ahead when talking about the heating and cooling industry.

Here are five reasons to be positive about the HVAC industry:

1. Private Equity: Private equity money has been flowing into the HVAC industry for the last few years now. It has been great for a lot of contractors who certainly got rewarded for working hard and building great businesses.
   The private equity folks are not in the business of losing money. They invest a lot of time, effort, and capital to make sure they get a solid return on their investment. Sure, they see a mostly fragmented business on the contractor and distributor side that they find advantageous to merge together. But they also know the growing importance of air conditioning in our society as a need instead of a want.
   It is never a bad place to be on the side of private equity. It is like being on the same side of the Super Bowl with the major casinos. I like our chances.
2. Perspective: Like with anything in life, how the HVAC industry is doing comes down to how you are viewing it. While the numbers might be decreasing from the last three record years, the amount of product being purchased is still quite strong.
   If you had offered these numbers to the industry at the end of 2019, everyone would have certainly signed up for it. So in looking at this with a glass-half-full perspective, the industry is much better off than it was five years ago.
3. Recent History: Since the Great Recession of 2008, the HVAC industry has been incredibly resilient. In the last 15 years, there have certainly been more than a few macro factors that made the leaders in the industry nervous about its immediate future. Tariffs, COVID, and supply chain issues have all been dealt with by the industry without missing a beat. Odds are that the industry can also handle inflation and a downturn in the economy.
4. Inflation Reduction Act: This legislation from the federal government means HVAC equipment — specifically, heat pumps, which can see a tax credit of up to $2,000 — is going to be much more affordable for homeowners.
   The U.S. government is trying to incentivize electrification, and this is something HVAC contractors should be taking advantage of this year. The federal government is also promoting the development of cold climate heat pumps, so this is for contractors in the north also.
5. Indoor Air Quality: In addition to normal heating and cooling, there is a great need for IAQ, and the HVAC industry can deliver. One needs to look no further than the recent Canadian wildfires to realize this is a problem that needs to be addressed.

And it is not just a short-term issue based on what is happening in Canada. This got on the public’s radar during the COVID crisis, and it is not going away any time soon. Homeowners want to be sure the air that they breathe is not putting their family’s health at risk.

So will HVAC shipment numbers be on par with the last three years that saw record highs? Probably not. But it is looking like the HVAC industry will continue to be robust, and owners will be in a great position to make a lot of money.

Source: 5 Reasons to be Positive About the HVAC Industry | ACHR News