Verify the company outside its sales pitch
Confirm the business identity, applicable local contractor licensing or registration, and insurance. Ask the relevant permitting authority what credentials are required for your address. Obtain recent references for similar completed installations and contact them yourself.
The FTC recommends checking licensing and insurance, seeking written estimates, and comparing them without automatically choosing the lowest bid. FTC contractor guidance.
Ask whether the company will perform the work itself or use subcontractors, and who is responsible for installation, permits, warranty service, and callbacks. If the legal business name on the agreement differs from the person requesting payment, get that resolved before proceeding.
Make the price explain the job
The proposal should identify exact equipment, sizing basis, included installation work, excluded work, start and completion expectations, permits, warranty, and change-order process.
Ask what is omitted compared with other bids. A low bid may reflect a different scope, equipment choice, or business model. It should still be complete enough to compare.
Do not accept a vague equipment description such as “high-efficiency AC” as the full scope. Ask for model numbers and the indoor and outdoor combination.
Clarify the deposit
Ask why the deposit is needed, when it becomes nonrefundable, what happens if equipment is delayed, and what milestones trigger later payments. Request written cancellation and refund terms.
The FTC advises against paying the entire project price upfront and recommends checking applicable local limits on down payments. That does not establish a Colorado deposit percentage for this job. FTC payment guidance.
A large deposit deserves a clear explanation and a verified company, even when it is for ordering equipment. Pressure to decide immediately or accept unclear cash-only terms is a reason to pause.
Your next step is to request the complete agreement, verify credentials with the local authority, and speak with independent references. If the contractor will not provide those basics, choose another proposal. The best price is the one you can understand and trust enough to complete the job, not simply the smallest number on the page.