Licensed vs accredited: what each one proves

What a trade licence proves

A trade licence is the legal minimum for air conditioning work in NSW. Nobody should install, repair or service your system without one, and every accredited member's people must hold the licences their work requires.

Two licences matter most for a home installation.

• A contractor licence from NSW Fair Trading. It must cover air conditioning, and in some cases electrical work as well. This applies to almost everything beyond a plug-in unit, including split, multi-split and ducted systems.
• A refrigerant handling licence from the ARC. Licences are issued at levels tied to the holder's qualification, and a restricted licence does not cover every job. For anything beyond a basic split system, ask for a full licence.

Unlicensed work carries safety risks, can attract penalties and may void the manufacturer's warranty, so always ask for the licences, whoever you are buying from.

What a licence does not tell you

A licence shows that the holder may legally do a type of work. It does not tell you much about the business behind the job. It does not prove:

• An established business. The licence holder might be a contractor sent by a retailer, and the licence does not tell you whether there is a showroom, design capability or a business that will still be there when you need it.
• A service department. Licensing does not require anyone to be on hand for breakdowns or warranty work afterwards.
• A written standard for quoting and installing. Licensing does not require capacity to be calculated by an approved method, or a quote that lists inclusions and exclusions.
• A guarantee on the workmanship. If the installation falls short, your remedy is the business itself and your rights under Australian Consumer Law.
• A dispute process. A licence does not come with a committee that will check the work against a written standard and arrange for defects to be corrected.

What ACDA accreditation adds

ACDA is an industry association, not a regulator or a licensing body. It cannot issue a licence and accreditation never replaces one. It assesses a business against a written standard, The ACDA Standard, and holds it to that standard while it carries the badge.

1. Nomination. A business cannot simply apply. It must be put forward by a current accredited member who knows its work.
2. Assessment against the Standards. The Membership Committee confirms the business runs showroom sales, a back-up service department, and design and engineering capability, that its people are licensed for the work they do, and that it offers the major manufacturers' equipment.
3. The Code of Ethics and the Workmanship Standards. The member undertakes to be honest in its dealings, to quote in a way that lets you fairly compare, and to follow the Standards for how it specifies, installs and supports a system.
4. Accountability while it holds the badge. Every new domestic installation is covered by the Guarantee, and the member answers to the Dispute Resolution Committee if you raise a concern.

What the Guarantee covers

The Guarantee is a written workmanship guarantee on new domestic installations by an accredited member, on contracts up to $25,000 including GST. If the installation falls short of the ACDA Standards, ACDA engages an independent Chartered Engineer to investigate, report and advise you of any defects, and arranges for them to be corrected.

It is not an equipment warranty. Faults in the unit itself stay with the manufacturer under its warranty, and your member can help you lodge that claim. It is not a price guarantee, and it does not cover work by a business that is not a current member.

The Guarantee applies in addition to your rights under Australian Consumer Law, not instead of them. The wording is on The ACDA Standard.

How to raise a dispute

If you have a concern about work by an accredited member, ACDA wants to help put it right, and there is a set process.

1. Complete the Dispute Resolution Form. Your details, the member's details, what was installed and when, and what the problem is. The form is on The ACDA Standard.
2. Attach your documents. Copies of your quote, your invoice and anything else relevant, such as photographs.
3. Send it to the Dispute Resolution Committee. Air Conditioning Dealers Association Inc, PO Box 253, Emu Plains NSW 2750, or [email protected].

Where an installation may fall short of the Standards, ACDA engages a Chartered Engineer to investigate, report and advise, and arranges for defects to be corrected. An equipment fault goes to the manufacturer under its warranty. The process covers new domestic installations by a current member on contracts up to $25,000 including GST, which is one reason to check membership before you sign.

How to check both before you sign

Check the licences. Ask for the contractor licence number and the refrigerant handling licence of the people who will do the work. NSW Fair Trading administers the first and the ARC the second. Ask for proof, not just a yes. If you are buying through a retailer, ask who the installer will be and check them the same way.

Check the accreditation. Every current accredited member is listed on Verify a member. If a business is not on the list, it is not an ACDA member. If you have seen the badge on a business that is not listed, tell ACDA at [email protected].

Before you sign

• Ask for the NSW Fair Trading contractor licence number and check it covers air conditioning work.
• Ask for the ARC refrigerant handling licence; beyond a basic split, check it is a full licence.
• Ask who will do warranty and breakdown work, and whether the business has its own service department.
• Ask for a written quote with calculated capacity, inclusions, exclusions and the warranty period.
• Check the business is listed on ACDA's Verify a member page.
• Keep your quote and invoice; you will need both if you ever raise a dispute.

Every accredited member's people hold the licences NSW requires, and the business is bound by the Standards, covered by the Guarantee and answers to the Dispute Resolution Committee. Check it is a current member before you sign.