I'm not an expert, but the only thing in my area that would require a permit is the electrical (if a new line is run to the outdoor unit). Replacing the blower and outdoor unit would not need a permit in my area. Hence no inspection (except the electrical). In which case they are paid when they are finished. And there should be a warranty covering both the installation and equipment..

Thanks weedmeister. The question is really when to make final payment - in your case, would you pay them in full before the final inspection is done when you do electrical work?

tigerdunes, they said 50% DP is for ordering equipment. Town inspector is responsible for inspection. I will request the contractor to show the permit on the day of the installation since this is by law in our area. I might have to negotiate some percentage payment hold till the inspection is done. The proposal did mention the installation will be up to the code and 2 years warranty.

In New Jersey the building codes seem to be constantly changing. One never knows whether an installaion will pass or not. The rule is the final payment is due after the township inspection. If you have complete trust in this contractor, you could pay in full. If not, then withhold some payment so you have leverge in getting any problems corrected. Schedule the inspection the day after the installation is completed.

Lanjin

Again 50% DP is absurd unless you are a credit risk. Something not correct about this. 25% and no more is OK.

And again, I would not make final pmt until inspection is complete and completely approved.

IMO