Replacement Cost Model
How the proposer calculates $/ton — the estimated total installed replacement cost for each HVAC unit
Step 1 — Base Cost (Equipment Type × Size)
The biggest driver. A 20-ton CRAC costs 2.5× more per ton to replace than a 20-ton RTU because of precision cooling, raised-floor infrastructure, and redundancy requirements.
Base $/ton by Equipment Type and Tonnage Tier
Step 2 — Region Multiplier (Labor + Material Costs)
Reflects geographic cost differences. SF Bay Area is 38% above national average; Southeast is 8% below. Based on RSMeans 2024 City Cost Index (Division 23 — HVAC).
Region Cost Index (1.00 = National Average)
Step 3 — Facility Multiplier (Complexity Premium)
Mission-critical facilities cost more due to redundancy requirements, testing protocols, and downtime constraints. A hospital install needs 50% more coordination than an office.
Step 4 — Access Adder ($/ton flat add)
Crane rental, rigging labor, and interior logistics. This is a flat adder, not a multiplier — a rooftop unit costs $250/ton extra regardless of equipment type.
Access Complexity Adder
Impact on a 25-ton RTU (NE Region)
Worked Examples
Three real-world scenarios showing how factors combine.
RTU 30-ton Rooftop Unit — Office Building, Northeast
Base: $2,200/ton (RTU, large tier: 25-50T)
× Region: 1.12 (Northeast)
× Facility: 1.00 (Office)
+ Access: $250/ton (Rooftop)
= $2,714/ton → $81,420 total replacement cost
Chiller 150-ton Air-Cooled Chiller — Hospital, West
Base: $2,800/ton (Chiller Air, XL tier: 50T+)
× Region: 1.15 (West)
× Facility: 1.50 (Hospital)
+ Access: $350/ton (Mechanical Room)
= $5,180/ton → $777,000 total replacement cost
CRAC 20-ton Precision Cooling — Data Center, SF Bay Area
Base: $7,000/ton (CRAC, mid tier: 10-25T)
× Region: 1.38 (SF Bay / West+)
× Facility: 1.70 (Data Center)
+ Access: $350/ton (Mechanical Room)
= $12,000/ton [capped] → $240,000 total replacement cost
Without the cap this would be $16,772/ton. The $12K cap keeps estimates defensible.
Quick Reference — Base Cost Table
When equipment type is unknown, falls back to conservative default: $3,000/ton (≤25T) or $2,500/ton (>25T).
| Equipment Type | Small (≤10T) | Mid (10-25T) | Large (25-50T) | XL (50T+) |
|---|
| Split System | $5,500 | $4,000 | — | — |
| PTAC | $4,500 | — | — | — |
| RTU / Packaged DX | $3,500 | $2,800 | $2,200 | $2,500 |
| Air-Cooled Chiller | $4,000 | $3,000 | $2,500 | $2,800 |
| Water-Cooled Chiller | — | $3,500 | $2,800 | $3,200 |
| CRAC / Precision | $8,000 | $7,000 | $6,000 | — |
| AHU / Dry Cooler | $2,800 | $2,200 | $1,800 | $2,000 |
Why XL costs more per ton than Large: At 50T+, units exceed single-lift capacity,
requiring split delivery, field assembly, and multiple crane picks. Structural reinforcement of rooftops,
specialized rigging, and extended commissioning drive per-ton cost back up despite economies of scale
on the equipment itself. (RS Means Mechanical Cost Data 2024; Gordian Unit Price Book 2023 Div 23)
Why this matters for sales: When we know the equipment type, we use the correct base cost.
A CRAC at $7,000/ton base produces a much larger "avoided replacement cost" savings number than
the conservative default of $2,500-$3,000/ton. Getting the equipment type right = bigger deal value.
Sources: RS Means Mechanical Cost Data 2024; Gordian Unit Price Book 2023 (Division 23);
Ener.co internal field data 2018-2024; Google/JLL SF Bay facilities data (2026);
TD Bank Mount Laurel NJ facilities data (2026).