The ductwork complicates things; how complex is the replacement of the ductwork? Aside from that, the estimates seem insane. Get 3 or 4 more estimates - that's the only way to really compare.

The more parties involved in the transaction, typically the more it will cost. Because you are buying this thru Costco, they will want their cut of the transaction. The advantage (if you could call it that) is that if there is a problem with the job Costco (hopefully) would help you get it remedied.

New refrigerant lines, new R8 ducting can add a good amount to a job. Many times this depends on access problems, length of runs and so on.

When making comparisons you also must take into consideration the service record of the installing contractor (who ever it is you wind up choosing). Regardless of what brand you wind up going with, that equipment will need servicing at some point.

The last thing you want is new equipment that has problems and a frayed relationship with the installing contractor. This happens more often than you think. Take the time to do the homework, while even that isn't a guarantee these days it should reduce your risk by a good margin.

If you're not comfortable with the installing contractor, follow your gut... because it will not get any better if problems ensue.

I recommend getting 2-3 additional quotes from HVAC contractors. Get a Lennox dealer involved if you like that equipment. Otherwise pick a brand that is popular in your area. Try to get at least one load calculation.

WOW! How long will it take to pay that back in energy costs? That's unbelievable. As a contractor, I usually defend higher pricing if the quality is there, but WOW! Here's my two cents.

1. Find a reliable independent contractor. Find someone that has a reputation for honesty. I know that will be hard, but it can be done. A big box store ain't gonna get it. There are too many layers to take a chance. In the end. nobody will want to take responsibility if something goes wrong. A family owned, independent contractor knows the "buck stops here".
2. Don't let someone sell you extremely overpriced equipment that you will NEVER pay back on energy savings. A 16 SEER single stage system will work just fine and will offer great energy savings, I promise. It will also be much more trouble free as it will not have most of the junk manufacturers put on the ultra high efficiency stuff so they can manipulate the SEER numbers (did I just say that?). Stick with the mid-range efficiency. You'll be glad you did.
3. Don't do anything without someone verifying that your ducts are correctly sized and insulated. Your duct system comprises exactly half of your heating and air conditioning system. Most of the people I know that install this ultra high efficiency "stuff" end up with very inefficient equipment because their ducts are undersized, not properly insulated, and leaking. My money will be spent on the duct system FIRST, not last. After that, then go for efficiency. Before the duct system is corrected, don't waste money on "super boxes".

That's my two cents and worth exactly what you paid, but I think good advice. Feel free to check out some of the articles I've written on my websiteHERE,

Hope this helps!

'WOW! How long will it take to pay that back in energy costs?'

Not as long as you think. California has some of the highest energy costs you can imagine. The only place higher is Hawaii. June 2016 average is 20 cents per KWH.

Completely different market.

Scroll down to utility rate graph.

OP. How many days will did you use the A/C this last month, if at all?

Elec rate is but one part of the picture - usage is another part.

Typical cooling season use (in hours) for Houston compared to Los Angeles:

TX

Houston

2,209 Hours

CA

Los Angeles

1,530 Hours

But the utility rate in LA is more than double that of Houston.

This general data is of no value to this situation

LA, like San Diego, has dramatically different temperatures depending on location. Thus I asked the OP. He's in Playa Del Rey.

In LA and also San Diego, in my personal experience, it can be 70 degrees in one neighborhood and be over 100 degrees just 15-20 miles away. I believe the term in the Heating and Cooling biz is micro-climate.

Thus I asked the question of the OP rather than a vendor in Texas..

always get more than one bid.

avoid box store hvac sales, just

read through some of the older threads dealing with home depot,

lowes & sears hvac horror stories.

get 3 bids minimum.

load calc.

duct work evaluation & design if modifying

existing duct system or installing new duct system.

you have no basis for comparison with one bid.

kinda like some one promising you no issues with

your system via internet.

worthless when things go south.

best of luck

energy_rater_la, you bring up some very good points, especially about the load calculations, the duct evaluation, and the big box stores. By the way, want to know which contractors work for the big box stores? It's the guys that can't work for anyone else, at least in my experience. Some of them may be good guys just starting out, but many of them have burned so many bridges, this is their only option.

I do, however, question the reason for getting a "3 bid minimum". First, the concept of "bid" automatically suggests we're looking for the cheapest price. That's almost always what gets homeowners in trouble. If I'm looking for "bids", my goal is to find the "cheapest" price. That's what a "bid" is for, to find the cheapest price. This forum is littered with unfortunate homeowners that got the cheapest price and are now paying sometimes double to fix the cheap price. I advocate instead, find a service contractor that you are confident in,and can trust. Ask family, friends, co-workers, enemies, and everyone you know who they TRUST and use. It's perfectly fine to get recommendations from as many contractors as it takes to find someone you TRUST. Once you find that person, ask them what they would do if it were their home and follow their advice. You may have to kiss a lot of frogs before finding that person, but you gotta pucker up and kiss as many as it takes. This may be more work than just getting a bunch of "bids" but you'll almost always be happier and more satisfied in the end. Just my two cents and possibly worth half that much.

Air and Energy is correct. You don't want 3 bids so you can select the lowest price. You should get 3 proposals. Each proposal must have all the details in terms of equipment models and description of work.

personally I recommend to my clients 3 bid minimum

and good - better - best options on each bid.

in my experience homeowners seldom opt for low

bid when better choices are presented to them,

and explained to them in a understandable fashion.

I seldom recommend above 18 SEER. Granted there

are lots of bells & whistles when you get above midrange

efficiency, but payback increases for not much better

performance in my climate.

the meaning of bid to me is just that. a bid for work.

with one bid you have nothing to compare.

with 3 bids the homeowner has an apples to apples

comparison to make an educated choice.

each bid should be for the

same amount of tons, good/minimum, better/mid-range

& best/high efficiency choices. the only difference being the

brands of equipment contractor installs.

And OP, every major brand has a sister company.

Trane/American Standard etc.

install is more important than brand, don't get

hung up on brand names.

(and hey Saltidawg! hope all is well with you)

best of luck

I think in the context of screening contractors to choose which to use for a particular job, the words "bid", and "proposal" don't have substantially different meanings. Job bid, job proposal, job quote, same difference. All suggest "what are you going to do, when and how are you going to do it, how much will it cost?

I agree with the advice of "don't choose by price alone", it's one of several factors. But, don't ignore it. The most expensive quote isn't always the best either.