You are unhappy with your service. Maybe you think your paying too much. You go and ask your account manager for your elevator contract. Come to find out you have 4 more years on the term of your contract!
The never ending elevator contract
Most elevator contracts are 5 years. On top of that most elevator contracts will roll for another period of 5 years unless terminated in a highly specific window. Typically, you can not just send a cancellation a year before hand. It will have to fit in a specific 30 day window. As you can imagine the elevator companies make it pretty hard for you to cancel.
5 years probably seems like a long time compared to your other vendors. If you ask your elevator company they will tell you that since a full maintenance contract covers parts that they need multiple years to recoup lost costs on parts. In the past this was likely true. However, the way most of the large elevator companies are run they will try and replace parts (especially expensive ones) as little as possible.
The large elevator companies have operating costs like any other company, including the elevator maintenance they should be performing on your elevator. Some elevator repairs that are covered by contract can cost a few thousand dollars. If elevator repairs can be bandaged or ignored by your elevator maintenance provider it will be. The most common case is a leaking packing in a hydraulic elevator. Instead of replacing the packing many elevator companies will let it leak and have the mechanic add more oil to the tank instead.
Don’t get stuck in a 5 year elevator contract
Since many elevator maintenance companies no longer fix required repairs, or if they do it is not in a timely manner. Why should you be stuck with a 5 year contract that rolls? When negotiating your elevator contract do not accept a 5 year contract. In the past decade elevator companies have been more willing to compromise on term. However, beware, as some large elevator companies still incentivize their account managers to sell for length of contact.
Ideally you should get a 1 year contract. It should be ok to let it roll every year, otherwise you will have to work on a new contract once a year which will be time consuming. If your elevator company puts up a fight and your happy with your service, try a 2 year contract. They will ask for 3 years, but within that time frame an elevator office can have an entire staff turnover, so you may suffer service degradation.
Cancellation without cause clause
It can be very difficult to get out of a contract if you are unhappy with your service. Now that your contract is down to 1-2 years you should not have to wait long. But what if service is abysmal? Ask for a cancellation without cause clause so you have the ability to cancel (typically 30 days notice will be required). Your elevator company will be very reluctant to let you add this in.
Often times they will offer to put a cancellation with cause clause instead. This means that they will have to breach the contract and will be allowed 30 days to self-correct. This clause still allows a fair amount of poor service before you could part ways with your company. This clause is better than nothing but if you can work in a cancellation without cause clause I highly recommend it. Account managers are typically incentivized to make the sales regardless of special conditions like cancellation clauses. This should give you some leverage.
Hopefully, you can negotiate a shorter term contract with an out clause to protect yourself from poor service!
Another option would be to hire an elevator consultant who has an already written elevator contract you can use.