I went through a similar experience in the past. In my case, it was a grant
program for nonprofits and the nonprofits had to get 3 bids from contractors
in order to qualify for the grant money.

Contractors don't like to get involved with these deals for a number of
reasons. One is that they know you have to get 3 bids, so they know up
front that -- at best -- they have a 1 in 3 chance of even getting the job
in the first place. Then, if they get the job, there are usually questions
about how and when they will get paid. Most grant programs like this are
slow to release the money to the contractor and/or they hold back money
until final inspections and other paperwork are completed. Time is money
for the contractors, so they don't want to spend their time on a lot of
bureaucracy, and they don't want to spend time answering to a third party in
the transaction. My guess is that the grant funders aren't going to give
you the money up front. Instead, they are going to require the contractor
to do the work and then, when all of the paperwork and inspections are done
and submitted, they'll issue a payment to the contractor in 30 to 60 days.
Your situation might be different than that, but that is how it often works
in other programs.

Calling the program director is a good first step. She can clarify how it
really works in terms of the money being paid to the contractor who does the
work. She will also probably say there are rules against her naming or
suggesting any particular contractors that you can use, but you can always
ask. Maybe she'll have a list of contractors in your area who have already
participated in the program. If so, they'll know how it all works and might
be willing to submit a bid.

Another option would be to try going with large companies (like Sears) and
just say what you are thinking of having done and ask for an estimate. You
don't need to tell them that you are getting 3 bids and you don't need to
tell them you are going to use grant funds to pay for the work. After you
get each estimate, just say you need to think about it. Then, after you
have 3, submit them and ask to be approved for funding. Once you are
approved, tell the company you are going to use that you found out you
qualify for funding for the work through the program. Tell them this is how
the program works and ask if they would be willing to accept payment through
that process.

The last option, if all else fails, would be to contact a general
contractor. Explain what the problem is, and that you can't qualify for the
funding unless you have three bids. Ask if he/she uses a number of
different subcontractors for HVAC work and if he/she can get 3 of them to
look at the job and prepare bids for you. Then you'll have 3 different bids
from 3 different companies that you can submit to the program when
requesting funding approval.

Good luck.

"Hell Toupee" wrote in message
...
I'm having a bit of a problem getting bids for a new furnace. I'm
hoping that some folks in the HVAC profession might be willing to
give me their opinion here.

I've qualified for a 'this old house' program offered by our county
to make older homes more energy efficient. In my case, the first
priority identified by the program is replacing my 1970s-era furnace
with a new high-efficiency furnace. I was told I could call any
contractor, and to submit at least three bids to the program
administrators for review. I was told I could indicate my preference
as to which contractor I'd rather go with.

The first company I had out came highly recommended by my brother.
They'd installed a/c for him a year ago, and the estimator had spent
a considerable amount of time running a Manual J and coming up with
two proposals for my brother to consider. He was very pleased with
their quality of work and the time they spent explaining the issues
with him, which is why I called them. I even arranged to have the
same estimator who'd done my brother's bid come to do my proposal.

Unfortunately, as soon as the guy showed up and learned my furnace
replacement was going to be handled under this program, he lost all
interest. He looked at my old furnace, rapidly wrote up a brief
proposal, and began to leave. I had to stop him to ask him some of
the questions that should have come up in a proper proposal process.
He told me the program would not allow me to pick the contractor and
since they'd award the job to the lowest bidder, it wasn't worth
spending any more time with me.

The estimator from the next highly-recommended company arrived, and
the process took even less time. As soon as he heard it was a
replacement under this program, he told me they only supplied one
furnace model under the program, and that he'd fax a bid to the
program. He then left.

I then called the third company, one I've done business with in the
past. They told me they don't work with this program, so they're not
interested in meeting my heating-a/c needs this time.

Okay. I've got a call into the program director, because she had
told me I'd have a choice of contractors and a choice of installs,
subject to certain pricing parameters, and that's not what the
contractors are saying. If this program provides furnace
replacement, yet is so focused on the lowest bid that it won't
permit a contractor to properly size the package to the home, it's
probably wasting money. I'm not sure if getting a (basically) free
furnace under a one-size-fits-most proposal is a better deal than
paying several thousand out of my own pocket for a properly sized
furnace. And the fact that I'm being treated like a leper by the
quality HVAC contractors scares the hell out of me.

Is there anything I can do to make this job more appealing to a
quality HVAC contractor? I don't want to hide the fact that this is
a 'this old house' replacement program deal from a prospective
contractor, but I'm floored at the difference it makes in how my
proposal is being handled. Should I call a company and offer to pay
for a proper proposal?

Thanks in advance for any comments or suggestions,

HellT