It is that time again. Your elevator maintenance contract expires and you must renegotiate.
It is complex and long. How can you determine what is most important?
How can you find out which companies will maintain your elevators
This article will assist you in that endeavor. Let’s get down to the details and find the most important points in your elevator maintenance contract.
1. Cost of maintenance for an elevator
Your building’s operating budget will include significant amounts for elevator service costs. It is crucial to ensure you are getting a fair price.
We’ll begin by talking about the lift part suppliers and costs.
How much does maintenance on an elevator cost?
Elevator maintenance costs can range from $80 per month to $750 per month. Prices vary depending on the type and location of the elevator, as well as the building’s height and level of service. Low-rise hydraulic elevators are more expensive to maintain than high-rise traction ones.
Negotiate Your Elevator Service Contract For A Better Price
You can save money by looking for ways to continue receiving the services you require, no matter how small. Your elevator contract price may be reduced if you sign up for long-term service (five years or more). You may be able to negotiate a bulk price if you have multiple elevators.
Other areas where you can find lower costs are:
Annual Price Adjustment
Your service provider might have a language that allows gradual price adjustments year over year if you are on a multi-year contract.
This can be achieved by asking for a limit on adjustments that do not exceed a certain percentage of your comfort level. You may also ask for no adjustments.
Reduce Trouble Calls
Your elevator service provider should not be paid if things go wrong. Instead of paying for overtime, negotiate an hourly rate for service calls.
Even if you select 24/7 service coverage, you will inevitably receive a bill. You may not be covered for certain elevator service issues.
What are the hourly rates?
It is important that your contract clearly states the hourly rate. This will be discussed in greater detail below.
Elevator Monitoring and Internet Connection
Connect your elevator to the internet to get full elevator capabilities. This is a highly sophisticated piece of equipment. You can sometimes upgrade your unit for a small amount to detect problems before they occur, which could pay off in the long term.
2. Language for Termination of the Elevator Maintenance Contract
You should consider the end of any contract before you sign it. What happens at the contract’s end? What happens if someone fails to perform according to contract terms?
Here are the facts.
Auto Renewal Contract Terms
Most elevator maintenance contracts include an auto-renewal clause, an evergreen clause, or a roll-over clause (all three mean the same thing). You should verify the termination language of your current contract before you negotiate a new one. More specifically, check when or if it renews.
Did your contract already renew?
Most contracts require written notice of termination at least three months prior to the end date. It may be renewed automatically for another term. Double-check your current contract termination language.
Some states have no regulations for auto-renewing contracts, which could lock you into another five-year term without your knowing.
You might consider signing only for the initial term. Then, make sure that the contract is written to continue month-to-month after the expiration of the initial term.
Language for non-performance termination:
It’s hard to predict what might happen in the future when you enter into a long-term agreement. No matter what happens, your concern will always be with the company’s ability to maintain code compliance and reliability.
- What happens if your elevator isn’t in use?
- What happens if they don’t keep the elevator code complaint?
If you believe it is possible, and it does, then you might consider adding language that would allow early termination in the event of your provider’s failure.
3. Elevator Repair
An elevator bid is often focused on the monthly service price, which is a good strategy.
You shouldn’t ignore elevator repair costs.
On average, elevator repair costs are 30% to 40% more than what you pay for maintenance. You can expect to spend 30-40 cents more on repairs for every dollar spent on maintenance.
For example, a courthouse in West Virginia that spends $1,000 per month on elevator maintenance paid $21,000 for an elevator repair. The repair cost them 35% more than what they paid for maintenance over a five-year contract. This does not include any other repairs or service calls.
What does this mean for your elevator maintenance contract
You can use your maintenance contract to lower future repair costs. Your purchasing power can be maximized when you are in the market to maintain your elevators.
Let’s talk about a few of the ways you can make the most of this opportunity.
Get Additional Quotes from Elevator Repair Companies
You should be able to solicit competitive bids from multiple elevator repair firms through your maintenance contract.
Let’s say, for example, you are halfway through a five-year contract and an expensive repair occurs. Do you have to pay the elevator maintenance company what they propose? Do you have a contract that prevents you from obtaining competitive bids?
Hourly rates for Elevator Mechanics:
The elevator mechanic hourly rate should be negotiated up front and added to the maintenance contract. This will limit hourly costs and lower the total cost for repairs over the life of your elevator contract.
Your cost is not limited if hourly rates are not included in the contract.
The Teton County contract, WY (see the section above), did not include an hourly rate to fix elevators. Repairs and service requests can be billed at any price.
While you negotiate the maintenance contract, consider adding elevator mechanic rates.
Elevator Repair Costs:
Maintenance bids are the best way to save money on repair costs for elevators. Bundle repair projects with your maintenance agreement to maximize your purchasing power.
To help you plan your next project, we have created a free Elevator Repair Cost Calculator. You should ensure that you have the maintenance and repair price in order to keep the project within your budget.
4. Companies that maintain elevators
A good contract for an elevator is important, but having the right company to operate it is even more crucial for your elevator’s reliability.
Let’s take a look at a few:
Independent Elevator Maintenance Companies
In the USA and Canada, there are many independent elevator service businesses. These independent companies do not manufacture elevators. They wouldn’t be in existence if they couldn’t maintain different types and makes of elevator equipment.
Major Elevator Maintenance Businesses:
Non-independent businesses, also known as Original Elevator Manufacturers or “Majors”, employ a large number of people around the globe. Major companies may also own equipment from other manufacturers, even if they are not independent elevator companies. These companies have multimillion-dollar research and development budgets to reverse engineer equipment made by competitors.
Elevator Repairs and Replacement Parts: Which Elevator Maintenance Company has the Parts You Need?
How would an elevator company get the parts if they didn’t make the equipment?
All major elevator manufacturers have established sister companies that sell the components they made to their rivals, who then maintain the equipment.
These subsidiaries businesses can be multi-million-dollar businesses on their own.
Take a look:
Do you need to replace an Otis elevator part? Unitec is a dedicated company, owned by Otis, whose primary business is supplying competitors with Otis manufactured parts.
Vertical Express is owned by ThyssenKrupp, which is a company dedicated to selling parts for elevators they manufactured. They also sell parts for the elevator companies they have acquired, like Dover Elevator Company.
Kone Spares is a company dedicated to selling parts for Kone-manufactured elevators and escalators. They also sell parts for other manufacturers such as ThyssenKrupp and Schindler.
Adams Elevator is Schindler’s company dedicated to selling parts to companies that are not Schindler. They also design and manufacture their own safety products.
It is possible to find replacement parts for equipment made by different elevator companies.
Types of non-private equipment elevators
There are many types and models of elevators that are easily maintained by all elevator companies. There are dedicated manufacturers who only make non-proprietary equipment.
4. How to Avoid Poor Elevator Maintenance
Most buildings notice a lack of maintenance only after an elevator breaks down or when an inspector issues a ticket.
If elevators are critical for your building, then you should consider performing regular audits and tracking additional metrics. This will allow you to identify any maintenance issues before they become serious or result in an inspection citation.
Are you satisfied with your elevator contract? Is the service meeting your current needs? Is there a way to save money? All these are things to think about when you reexamine your contract.