Martik wrote:
I wouldn't pay more than $3500 for the furnace and water heater including a
10 year parts/labor warranty.

I just had a condensing gas furnace (75k, Armstrong) installed for $2400
which included both intake and exhaust PVC pipes. The water heater should
only be another $600 max more. You should expect to pay extra for the gas
pipe to the meter. I'm not sure if the chimney will need a liner with ONLY
the water heater vented to it. All this is no more than a long day's work
for ONE person providing the gas and venting lines are not too complex. Keep
looking for quotes. I found that the one/two man shops with small ads in the
yellow pages provided the best quotes, some of the larger companies were up
to $5000 just for the furnace!!! . Make sure they pull a permit BEFORE the
job. Make sure the furnace is sized correctly for your home's heat loss.

Thanks for this -- just for info, the breakdiwn I got from the lowest
of the 2 quotes went like this (all numbers are in Canadian dollars,
but that's not much difference these days from US):

Furnace $1950 (92% eff. Tempstar)
HW heater 40 gal forced vent $1250
Elec. air cleaner $600

Installation & removal $3200

This is from a 2-man shop and I like these guys from what I've seen to
date. The other quote is from a bigger outfit and is about $500 more.

Gas is relatively new to this area and there are only about 1000 homes
using it, so there ins't a lot of experience among contractors nor a
lot of choice.