📋 What is HVAC Failure?

HVAC failure occurs when a heating, ventilation, or air conditioning system fails to perform as promised due to defective equipment, negligent installation, or code violations. In California, HVAC work is heavily regulated, requiring specific licensing (C-20), permits, and compliance with Title 24 energy efficiency standards. When contractors cut corners or perform substandard work, homeowners have strong legal remedies.

Common Types of HVAC Failures

This guide applies if your HVAC contractor or installation has any of these issues:

❌ System Won't Heat or Cool

Equipment fails to reach set temperatures, runs constantly, or provides insufficient heating/cooling

🚫 Improper Installation

Wrong size unit, improper ductwork, refrigerant leaks, or electrical issues causing premature failure

💰 No Permits Pulled

Contractor installed without required building permits or passed final inspection through fraud

⚠ Title 24 Violations

System fails to meet California's mandatory energy efficiency standards, causing high utility bills

California's HVAC Contractor Regulations

California provides robust protections for homeowners dealing with defective HVAC work:

📚 C-20 Warm Air Heating, Ventilating and Air-Conditioning License

▼

California requires a C-20 contractor's license for HVAC installation and major repairs. The C-20 license authorizes work on:

  • Heating systems: Furnaces, boilers, heat pumps, radiant heating
  • Cooling systems: Air conditioners, evaporative coolers, chillers
  • Ventilation: Ductwork, exhaust systems, air handling units
  • Controls: Thermostats, zoning systems, building automation

Work without a C-20 license is a misdemeanor under B&P Code 7028.

🌱 Title 24 Energy Efficiency Standards

▼

California's Title 24 Building Energy Efficiency Standards require HVAC systems to meet strict efficiency requirements:

  • HERS Testing: Many installations require third-party verification by a Home Energy Rating System (HERS) rater
  • Duct Sealing: Ducts must be sealed and tested to prevent air leakage
  • Load Calculations: System sizing must be based on Manual J calculations
  • CF-1R/CF-2R/CF-3R: Compliance forms documenting code compliance

Failure to meet Title 24 can void permits and warranties.

🔒 Permit Requirements

▼

HVAC installation and replacement typically requires building permits:

  • New HVAC system installation (always requires permit)
  • Replacement of furnace or air conditioner (requires permit)
  • Ductwork modifications or installation
  • Adding or modifying gas lines
  • Electrical work for HVAC equipment

Unpermitted work can result in: forced removal, inability to sell home, insurance claim denial, and no manufacturer warranty.

💰 Warranty Requirements

▼

HVAC systems come with multiple warranty protections:

  • Manufacturer warranty: Typically 5-10 years on parts (may be voided by improper installation)
  • Contractor warranty: Usually 1-2 years on labor and installation
  • Implied warranty: California law implies a warranty of merchantability (CC 1791.1)
  • New construction: 4 years for latent defects, 1 year for patent defects (CC 896)

⚠ Unlicensed HVAC Work = Major Problems

If your HVAC contractor was unlicensed (no C-20) or let their license lapse:

  • They cannot enforce the contract against you (B&P Code 7031)
  • You may recover all payments made (Labor Code 2810.5)
  • Manufacturer warranties may be void
  • Insurance claims may be denied
  • Permits obtained fraudulently may be rescinded

✅ Evidence Checklist

Gather these documents before sending your demand letter or filing claims. Click to check off items as you collect them.

📄 Contract Documents

  • ✓ HVAC installation contract (all pages)
  • ✓ Written proposals and estimates
  • ✓ Change orders and amendments
  • ✓ Equipment specifications provided

📋 Permits and Inspections

  • ✓ Building permit copy (if obtained)
  • ✓ Inspection records from building dept.
  • ✓ HERS testing reports (CF-2R/CF-3R)
  • ✓ Final inspection sign-off (or lack thereof)

💰 Payment Records

  • ✓ All cancelled checks / bank statements
  • ✓ Credit card statements
  • ✓ Financing agreement (if applicable)
  • ✓ Invoices and receipts

❄ System Performance

  • ✓ Utility bills before and after installation
  • ✓ Thermostat readings/logs showing failures
  • ✓ Independent HVAC evaluation report
  • ✓ Temperature measurements/documentation

📷 Photo/Video Evidence

  • ✓ Photos of equipment installation
  • ✓ Ductwork photos (connections, insulation)
  • ✓ Visible defects or damage
  • ✓ Equipment model/serial number photos

📩 Communications

  • ✓ All text messages with contractor
  • ✓ Email correspondence
  • ✓ Service call records and notes
  • ✓ Written warranty claims to contractor

💡 Pro Tip: Get an Independent HVAC Evaluation

Hire a different licensed C-20 contractor to inspect and evaluate your system. Ask them to document: load calculations (Manual J), equipment sizing, ductwork condition, code compliance, and estimated repair/replacement costs. This expert opinion is essential evidence.

📊 Calculate Your Damages

California law allows recovery of all damages caused by defective HVAC installation. Treble damages may apply when the contractor made false representations.

Damage Type Description
Cost to Repair/Replace Cost of a licensed contractor to properly repair or completely replace the defective HVAC system. Get 2-3 written estimates.
Permit Correction Costs Fees to obtain proper permits, HERS testing, inspections, and bring installation into code compliance.
Energy Cost Overages Increased utility bills due to inefficient equipment or installation compared to a properly functioning system.
Temporary Climate Control Cost of portable heaters, window AC units, or hotel stays during periods when home was uninhabitable.
Property Damage Damage to property caused by HVAC failure: water damage from condensation, mold growth, or other consequential damages.
Service Call Costs Money paid for repeated service calls attempting to fix the defective system before realizing full replacement was needed.
Lost Manufacturer Warranty If improper installation voided manufacturer warranty, the value of that lost warranty coverage.

Treble Damages Under B&P Code 7160

If the contractor made false representations to induce the contract, you may recover THREE TIMES actual damages:

❌ False Efficiency Claims

Promising specific energy savings or efficiency ratings that the installed system cannot achieve

❌ Wrong Equipment Installed

Installing different (cheaper) equipment than what was specified in contract or proposal

❌ False License Claims

Claiming to have C-20 license when unlicensed or using another contractor's license

❌ Permit Fraud

Claiming permits were pulled when they weren't, or claiming inspections passed when they didn't

📊 Sample HVAC Failure Damages Calculation

Example: Defective Central AC/Furnace Installation

Amount paid for original installation $12,500
Cost of proper replacement installation $15,800
Replacement overage $3,300
Permit and HERS testing fees $1,200
Excess utility costs (18 months) $2,700
Temporary heating/cooling equipment $850
Prior failed repair attempts $1,400
Water damage from condensation leak $3,200
ACTUAL DAMAGES SUBTOTAL $12,650
Treble damages (if 7160 applies: x3) $37,950
MAXIMUM POTENTIAL RECOVERY $37,950

⚠ Get Multiple Repair Estimates

To prove damages, you need independent verification:

  • Written estimates from 2-3 licensed C-20 contractors
  • Detailed explanation of what's wrong with the installation
  • Statement of code violations (Title 24, local codes)
  • Energy audit showing efficiency problems

📝 Sample Demand Letter Language

Copy and customize these paragraphs for your HVAC failure demand letter.

Opening - Formal Demand
RE: FORMAL DEMAND FOR DAMAGES - DEFECTIVE HVAC INSTALLATION

Dear [CONTRACTOR NAME/COMPANY],

This letter constitutes formal notice that the HVAC system you installed at my property located at [PROPERTY ADDRESS] is defective and fails to perform as warranted. Your installation violates California's Contractors State License Law, Title 24 Energy Efficiency Standards, and local building codes. I hereby demand that you remedy the defects or pay damages as set forth below.
Contract Background
On [CONTRACT DATE], I contracted with your company (California Contractor's License No. [C-20 LICENSE NUMBER]) to install a new [DESCRIBE SYSTEM: e.g., 3-ton split system air conditioner and 80,000 BTU furnace] at my residence. The total contract price was $[CONTRACT AMOUNT]. You represented that the system would [STATE PROMISED PERFORMANCE: e.g., efficiently cool/heat my home, reduce energy bills by X%, meet all code requirements]. I paid the full contract amount on [PAYMENT DATE(S)].
Defect Description
The HVAC system you installed is defective and fails to perform as warranted. Specifically:

Performance Failures:
- [DESCRIBE SPECIFIC FAILURES: e.g., System cannot cool home below 78 degrees when outside temperature exceeds 90 degrees]
- [e.g., Furnace short-cycles and fails to maintain set temperature]
- [e.g., System runs constantly but home remains uncomfortable]

Installation Defects:
- [DESCRIBE: e.g., Ductwork connections are loose and leaking air]
- [e.g., Unit is undersized for home square footage (no load calculation performed)]
- [e.g., Refrigerant charge is incorrect]

I have obtained an independent evaluation from [OTHER CONTRACTOR NAME], a licensed C-20 contractor, confirming these defects. A copy of their report is enclosed.
Legal Violations
Your defective installation constitutes multiple violations of California law:

1. Contractors State License Law:
- B&P Code 7109: Departure from plans and specifications by installing undersized/incorrect equipment
- B&P Code 7110: Failure to comply with building codes and permit requirements
- B&P Code 7113: Failure to complete the project to a standard of workmanship

2. Title 24 Building Energy Efficiency Standards:
- [IF APPLICABLE: No HERS testing performed as required]
- [IF APPLICABLE: Duct leakage exceeds code maximum]
- [IF APPLICABLE: No load calculation (Manual J) performed]

3. Permit Violations:
- [IF APPLICABLE: No building permit was obtained for this installation]
- [IF APPLICABLE: Installation failed final inspection]

4. Breach of Warranty:
- Breach of implied warranty of merchantability (Civil Code 1791.1)
- Breach of express warranty that system would perform as represented
Damages Calculation
As a direct result of your defective installation, I have suffered the following damages:

Repair/Replacement Costs:
- Cost to properly replace system (per estimates): $[AMOUNT]
- Original contract price paid: $[AMOUNT]
- Additional cost to correct your work: $[DIFFERENCE]

Permit and Code Compliance:
- Permit fees and inspections: $[AMOUNT]
- HERS testing: $[AMOUNT]

Additional Damages:
- Excess energy costs ([X] months): $[AMOUNT]
- Temporary heating/cooling: $[AMOUNT]
- Prior repair attempts: $[AMOUNT]
- Property damage: $[AMOUNT]

TOTAL ACTUAL DAMAGES: $[TOTAL]

[IF APPLICABLE: Pursuant to B&P Code 7160, your false representations entitle me to treble damages of $[TOTAL x 3].]
Demand and Deadline
DEMAND FOR REMEDY

I demand that within fifteen (15) days of the date of this letter, no later than [DEADLINE DATE], you either:

OPTION A - Correct the Defects:
Properly repair or replace the HVAC system to meet all contract specifications, manufacturer requirements, and code standards, at no additional cost to me, including obtaining all required permits and inspections.

OR

OPTION B - Pay Damages:
Pay the sum of $[TOTAL DAMAGES] to compensate me for the cost of hiring another contractor to correct your defective work.

If you fail to respond or provide appropriate relief by this deadline, I will pursue all available legal remedies including:
- Filing a formal complaint with the Contractors State License Board
- Filing a claim against your contractor's license bond
- Filing a civil lawsuit seeking actual damages, treble damages, and attorney fees
Closing
Sincerely,

[YOUR NAME]
[YOUR ADDRESS]
[YOUR PHONE]
[YOUR EMAIL]

Enclosures:
- Copy of installation contract
- Payment records
- Independent contractor evaluation report
- Repair/replacement estimates
- Photographs of installation
- Utility bills showing excess costs
- Permit records (or evidence of lack thereof)

cc: Contractors State License Board
cc: [BONDING COMPANY NAME]

🚀 Next Steps

What to do after sending your demand letter.

Recommended Action Sequence

Step 1: Send Demand Letter

Send via certified mail with return receipt requested. Allow 15-30 days for response.

Step 2: File CSLB Complaint

File online at cslb.ca.gov. Include all documentation. CSLB can order restitution.

Step 3: File Bond Claim

Contact the contractor's bonding company to file a claim against their $25,000 license bond.

Step 4: Pursue Legal Remedies

If no resolution, file in Small Claims (up to $10,000) or consult an attorney for larger claims.

If They Don't Respond or Refuse to Pay

  1. File CSLB Complaint

    The CSLB can investigate, order restitution, and suspend/revoke the contractor's license. File at cslb.ca.gov.

  2. File Bond Claim

    Look up the contractor's bond information on CSLB website and contact the surety company directly to file a claim.

  3. Small Claims Court (Up to $10,000)

    Fast, inexpensive, no attorney required. Good for straightforward HVAC repair cost claims.

  4. Civil Court (Over $10,000)

    For larger claims including treble damages. Attorney recommended for complex cases.

⚠ Contact Building Department

If work was done without permits, contact your local building department:

  • Request permit records for your address
  • Report unpermitted HVAC work
  • Ask about "owner-initiated" permit process
  • The contractor may be cited and required to obtain permits or remove work

❄ Don't Void Your Warranty

Before having another contractor fix the work:

  • Document everything with photos and video
  • Get the new contractor's evaluation in writing first
  • Keep all old parts and equipment for evidence
  • Consider having the inspection witnessed by a third party

Need Professional Help?

HVAC defect cases involving Title 24 violations or significant damages can be complex. Get a 30-minute strategy call with a construction attorney.

Book Consultation - $125

California Resources