Thank you , Mike. It is a single story home. The furnace will be placed in the crawl space...I know that sounds kind of weird, but it's not. It will be on a concrete pad in a clean, sealed crawl that is very deep. They will be able to drop down through the floor to service it. The duct work will be underneath the house....very clean, very simple (relatively) as I understand it.

I will find out if he did a load calculation. I'm thinking he did because he asked about new windows, doors, type of insulation going in, took measurements of everything, asked what temperatures we keep our house at.

Will the crawl space be insulated? I assume he is using flexible duct work. Will the main trunk be metal? Will the duct work be insulated? Is he going to run the returns to the top of the walls?

Most contractors don't like to break down their quotes by item. I think it is a fair question to ask how much of the quote is for the duct work since it appears to be the same for each option. Once have that number then you will get an idea how much you are paying for each AC condenser.

I don't like the "Failure to have annual maintenance will void Warranties" statement. I don't think Lennox requires an annual maintenance so you should check. You can't neglect the equipment for 10 years and expect Lennox to supply free parts, but I don't think you should be pressured to pay afor maintenance you may not need.

I reckon he did flip! So would I. A 95% furnace and a 16 SEER outdoor heat pump or condensing unit is also a good idea. It's good to remember that manufacturers make higher margins on higher efficiency equipment, sometimes much higher. As a contractor, I love higher margins, but it's a good idea to look at payback. Your contractor should have performed a Manual J heat load calculation to correctly size the system. He should also have a "payback calculator" based on first cost vs. energy efficiency. I would ask to see the comparison between what he has offered and a good 16 SEER system. I believe you will be pleasantly surprised (surprised anyway).

High efficiency equipment is a good idea, but you might want to look at an article I wrote dealing with high efficiency equipment before your purchase. Here it is: Is a High Efficiency Furnace For Me?

Judging by your description, the ductwork installation appears to be pretty straightforward. Ergo, your dealer must have been smoking something when he gave you those quotes! Your contractor is correct - find another installer, get more quotes, and don't be afraid to ask your installers for a breakdown of equipment install vs ductwork install costs.

We have our current home serviced every six months. But we have quite a few units. I have asked all of the questions that you all suggested.

The crawl space will be enclosed and conditioned.

The only thing that concerns me about any quotes is the original windows and doors. They are aluminum and they are certainly not efficient. We are working on finding appropriate replacements for them.

Thank you all for your help and the information you gave. I'll be back later today with another quote.