My building is finished, what do I do now with my elevators?
Elevator Warranty
The vast majority of times your general contractor purchased a one year warranty from the elevator installed that include elevator maintenance (sometimes two years ). You should call your elevator installer immediately and clarify what the warranty covers. This is a major source of confusion for building owners and property managers. Does the elevator warranty cover overtime calls? Does it cover acts of Gods, or cases of misuse and abuse? The answer is critical because you can easily end up with thousands of dollars of extra expenses during your first year that you thought were covered during the elevator warranty period!
More than likely, you are going to be hit with extra invoices in your first year. Many times the general contractor is still working on the building, or floor build outs begin during the elevator warranty period. The contractor work will often create dirt and debris which will go down the elevator shaft and cause excessive shutdowns. Almost all warranty periods will not cover these calls as they are considered misuse and abuse.
You will need to make sure you pass these invoices back to your general contractor so they cover the cost and you do not get stuck with them. Make sure that your elevator company has the correct address to invoice. Many times the elevator company will have the general contractor or developers address and you will not receive the invoice until after you have paid the general contractor and you will be caught holding the bill!
Why do I have callbacks and shutdowns with a brand new elevator?
You should expect callbacks and shutdowns during the warranty period. Often times there are kinks that the elevator companies adjustors need to fix, or the building is still settling. This is typical and expected. Other times you will have a new version of an elevator installed and there may be software bugs, that the installer of the elevator is still figuring out. If this is the case, you will have shutdowns that are primarily controller related. You can ask your elevator company for a callback report to take a look, or they may even tell you.
If this is the case you may be in store for a rough ride. Unfortunately, the installer of the elevator will be the best to fix the problem. Even an experienced elevator consultant won’t be able to help as they will rely on what they hear from the company who built the elevator! Instead, hound your elevator company to get the local adjustor on site as soon as possible.
Time to choose an elevator maintenance company: Should I go with the OEM?
You (or your general contractor) chose an elevator contractor to install your elevator, shouldn’t you just go with the installer for your maintenance contract? If you had one of the big 4 companies install their elevator on your property you should go with them. New versions of elevators often have proprietary software that competitors of the OEM have not reverse engineered. Keep in mind, elevator companies will tell you that they can take care of their new competitors equipment. The elevator manufacturer themselves will even claim that their equipment is non-proprietary. Legally, this is true.
However, if you do switch to another elevator company you may need to purchase a diagnostic tool from the OEM. I have seen these tools sold for as much as $10,000!
Furthermore, if you hire a non-OEM they will have very limited support for any controller related issues. Most likely they will call their friends who work for the OEM. I have seen elevator mechanics have trouble on new equipment that their own company installed! Now imagine an elevator mechanic who can’t call the factory that produced the equipment.
Now just because I recommend staying with your installer, doesn’t mean you should accept the first contract your elevator company gives you! Most elevator companies actually charge a 30%+ premium on their new elevator maintenance contracts. If they are brand new and therefore require less parts and service why would they do this? Because the vast majority of new building owners go with the OEM and the elevators still have proprietary aspects. Many elevator companies even incentivize their account managers to sell these contracts at higher margins.
Getting a successful first elevator maintenance contract
So, what can you do to get a good price? Negotiate. This will be a more challenging contract to negotiate as you have less leverage. Threaten to bid out your contract. Hire an elevator consultant. Offer to have a longer term contract for a price decrease. Typically I do not recommend long term contracts but with new equipment you should stay with the OEM for the first 5 years. Find out from another property what they pay for a similar elevator (traction vs. hydraulic and number of stops), and ask why there is such a discrepancy in price to your account manager.
Ask questions, like if this elevator is brand new and you will have to spend less on parts, why is this contract more expensive?
Hopefully, your elevator warranty period is successful and you can successfully negotiate a first maintenance contract for your building.