Building owners, property managers, and facility directors across the country share a common belief about their elevator service contracts. They assume that paying a monthly or annual fee for elevator maintenance is similar to purchasing insurance. The thinking goes like this: if something goes wrong, someone will be there to fix it. If an inspection comes up, the elevator will pass. If there is an emergency, help will arrive.
This assumption is not just inaccurate. Thousands of dollars are being cost to building owners in unexpected repairs, failed inspections, and equipment deterioration that could have been prevented. The truth is that an elevator service contract and an insurance policy are fundamentally different things, and treating one like the other leaves your building exposed to significant risk.
A more accurate comparison might be a gym membership. You pay every month. You assume you are getting healthier. But unless you actually show up and put in the work, or verify that someone is doing it on your behalf, nothing changes. The membership card sitting in your wallet does not make you fit. An elevator service contract sitting in your file does not maintain your elevator. Both require action, presence, and verification to deliver any real value.
What Do Building Owners Actually Believe About Elevator Service Contracts?
The insurance policy comparison is widespread because it feels logical on the surface. You pay a premium each month. You expect coverage when you need it. The elevator company shows up in your machine room, presumably performing the work you are paying for. When problems arise, you expect them to be resolved without additional cost because, after all, you have a contract.
We hear variations of these beliefs in nearly every building we consult with.
It is assumed by property managers that the elevators will be ensured to pass inspection, be code compliant, run smoothly, and be maintained by their service provider. It is also believed by hotel general managers that any service call related to guest safety and transportation will be covered. Furthermore, it is trusted by commercial property owners that their elevators are properly maintained through the monthly fee they pay. Condominium boards operate under the assumption that the elevator company is handling everything. All buildings feel that an elevator service contract will take care of their elevators.
These assumptions create a false sense of security that remains intact until something goes wrong. And when something does go wrong, building owners discover the painful gap between what they expected and what their contract provides.
What Is the Reality of Elevator Service Contracts?
The reality is that elevator service contracts are written by elevator service providers, and the terms typically favor the provider rather than the building. Unlike an insurance policy, where the insurer has a regulatory obligation to pay valid claims, elevator service agreements often contain vague language, broad exclusions, and limited accountability measures.
A contract that says preventive maintenance will be provided does not specify how many hours per unit, how often, what tasks will be completed, or how the building can verify the work was actually done. A contract that covers callbacks may exclude certain types of service calls or charge overtime rates that were buried in the fine print. The parts and labor for the callback maybe charged. A contract that promises response times may have no penalties when those commitments are not met.
This is where the gym membership analogy becomes particularly relevant. Imagine paying for a gym membership month after month, assuming you are investing in your health, but never actually walking through the door. A year later, you step on a scale and wonder why nothing has changed. The membership fees were paid, but the work was never done. This is exactly what happens in buildings across the country with elevator maintenance. The payments continue, but no one verifies whether the service is being delivered.
Most critically, many buildings do not verify whether their service provider is actually performing the maintenance they are paying for. Without independent documentation, there is no way to prove that elevator preventive maintenance visits occurred, that required tasks were completed, or that the elevator is receiving the care it needs to operate reliably and safely.
Does Having a Service Contract Mean You Will Pass Inspection?
One of the most dangerous misconceptions in the elevator industry is that having an elevator service contract guarantees your elevator will pass its annual inspection. This is simply not true.
Passing inspection is the building owner’s responsibility, not the elevator service provider’s responsibility. Unless your contract specifically states that the service provider is responsible for ensuring the elevator passes inspection, and includes consequences if it does not, the liability falls on you as the building owner.
We regularly encounter buildings that have paid for full service maintenance contracts for years, only to fail their annual inspection due to deferred maintenance, incomplete testing, or code violations that were never addressed. The building owner is shocked because they assumed their service provider was handling everything. Meanwhile, the service provider points to contract language that places the responsibility back on the building.
The inspection itself only confirms that your elevator meets minimum safety requirements at that moment in time. It does not evaluate whether your elevator is operating efficiently, whether your service provider is performing all contracted maintenance, or whether your equipment is being positioned for long-term reliability. Passing inspection is a baseline, not a measure of quality service.
What Happens When Service Is Not Actually Being Delivered?
We recently worked on an insurance claim investigation that illustrates this problem with painful clarity. A building owner had been paying for elevator service for almost five years. When multiple elevator components failed, the initial assumption was that a power surge caused the damage. The building owner expected the service provider to address the issue and moved forward with an insurance claim for the electrical event.
However, when we conducted a thorough investigation, the evidence told a different story. The elevator had not been receiving proper preventive maintenance for approximately four years. Components that should have been identified and addressed during routine maintenance visits had been allowed to deteriorate until they failed. What appeared to be sudden damage from a power surge was actually the cumulative result of years of deferred maintenance.
The building owner had paid for five years of service but received perhaps one year of actual maintenance, maybe. They had no independent records to prove otherwise, no documentation of what work was performed during service visits, and no verification that preventive maintenance tasks were completed. They trusted their service provider completely, and that trust was not supported by the condition of the equipment. The service provider did not provide any service records.
Think of it this way. You could pay for a gym membership for five years, but if you never walk through the door, you cannot expect results. This building owner paid for elevator service for five years but never verified whether the maintenance was actually happening. The invoices arrived, the checks were written, and everyone assumed the elevators were being cared for. They were not.
This scenario is not unusual. It represents a pattern we see repeatedly across commercial properties, hotels, hospitals, retail locations, and condominiums throughout the country.
Why Are Hotels and Commercial Properties Getting Hit With Unexpected Bills?
Hotel general managers and commercial property managers frequently contact us after receiving service invoices that caught them completely off guard. A service call that they assumed was covered under their maintenance agreement resulted in a bill for several thousand dollars. Work that appeared to be routine maintenance came with charges for overtime, parts, or services that were excluded from the contract.
The problem stems from contract language that is deliberately vague about what is included and what is excluded. Terms like adjustments, minor repairs, and routine maintenance are open to interpretation. When the elevator company interprets these terms narrowly, the building is left holding a bill for work they believed was covered.
Hotels face particular challenges because elevator reliability directly impacts guest experience. When an elevator is down during peak check-in times or a guest is trapped in a malfunctioning unit, the pressure to resolve the issue quickly leads property managers to authorize work without fully understanding the cost implications. By the time the invoice arrives, the leverage to negotiate has passed.
Commercial properties, retailers, hospitals, and other buildings with elevators experience similar dynamics. The urgency to restore service combined with limited elevator knowledge creates an environment where service providers can charge premium prices for work that may or may not be justified. An elevator consulting firm can always help to mitigate these issues.
Is an Elevator Service Contract Even Worth Having?
Given everything we have described, it is reasonable to question whether elevator service contracts provide value at all. The answer is nuanced but important to understand. Elevator consultants are being asked this all the time.
A well-structured elevator service contract with clearly defined terms, measurable performance standards, and proper oversight can absolutely protect your building and provide value for your investment. The problem is not with elevator service contracts as a concept. The problem is with how most service contracts are written, negotiated, tracked and managed.
Returning to our gym analogy, the membership itself is not the problem. A gym membership with access to quality equipment, knowledgeable staff, and clear expectations can transform your health. But only if you show up, track your progress, and hold yourself accountable to the results. The same principle applies to elevator service contracts. The contract can provide real value, but only if you verify the work is being done and hold your provider accountable to the terms.
An elevator service contract should include specific maintenance frequencies, detailed task lists, clear definitions of what is covered and excluded, response time commitments with actual consequences, and provisions for the building to verify that work is being performed. It should be written to protect the building’s interests, not just the service provider’s interests.
Buildings that treat their elevator service contract as a living document that requires oversight and verification typically receive better service and lower long-term costs than buildings that simply sign a contract and assume everything will be handled. The contract itself is only as valuable as the enforcement and documentation behind it.
How Can Building Owners Protect Themselves?
Breaking free from the insurance policy myth requires a fundamental shift in how buildings approach elevator management. Instead of assuming protection, building owners and managers need to verify service delivery and hold providers accountable.
First, maintain your own maintenance records either manually or electronically with the ElevatorApp. Under ASME A17.1, the building owner is responsible for maintaining the maintenance control program (MCP), not the elevator service provider. Keeping independent documentation of service visits, callbacks, repairs, and testing creates accountability and provides evidence if disputes arise.
Second, understand exactly what your contract covers and what it excludes. Have the contract reviewed by someone who understands elevator industry practices and can identify vague language that may be used against you. Know your cost exposure before problems occur, not after. A professional independent elevator consulting firm can provide you with all the information you will need.
Third, establish performance metrics and track them consistently. Response times, callback frequency, equipment uptime, and completion of scheduled maintenance tasks should all be monitored. If your service provider cannot or will not provide this data, consider what that says about their service delivery.
Fourth, consider engaging an independent elevator consultant to audit your maintenance program, review your contract, and provide oversight that ensures you are getting what you pay for. An elevator consultant works for you, not the service provider, and can identify issues before they become expensive problems.
Can a Building Operate Without an Elevator Service Contract?
For some buildings, the question is not how to improve their service contract but whether they need one at all. Not all states or jurisdictions require buildings to maintain an active elevator service contract. In these cases, building owners have the option to operate without a contract and simply call for service when issues arise. This approach, sometimes called time-and-materials or on-call service, means you pay only for the work you actually need rather than a fixed monthly fee.
If your building chooses this path, preparation becomes critical. You should identify and vet multiple elevator service providers who are qualified to work on your specific equipment before you need them. Waiting until an elevator is down to search for a provider puts you at a disadvantage and often results in higher costs and longer downtime. Having established relationships with two or three reputable companies gives you options when emergencies occur and provides leverage on pricing.
Keep in mind that operating without a service contract does not reduce your responsibilities as a building owner. You are still responsible for ensuring your elevators pass inspection, maintaining your maintenance control program records, and addressing code-required testing. In fact, buildings without service contracts need to be even more diligent about tracking maintenance history and scheduling necessary work proactively. Without a provider contractually obligated to show up, the burden falls entirely on the building to manage its elevator program.
A building must also make sure they comply with all necessary service required per year. This is a doable process, and many buildings are switching to this type of service since they are paying for contracts but not receiving the maintenance they were promised. This strategy has proven to save buildings on elevator costs
Key Takeaways for Building Owners
The elevator service contract insurance policy myth persists because it is convenient. Trusting that someone else is handling a complex building system is easier than verifying that work is being performed. But this convenience comes at a cost that buildings across the country are paying every day in unexpected repairs, failed inspections, and equipment that deteriorates faster than it should.
Your elevator service contract is a business agreement, not an insurance policy. It is more like a gym membership than a safety net. The results you get depend entirely on whether the work is actually being done and whether you are paying attention. The service provider is not responsible for your equipment unless you hold them accountable. And the assumption that everything is being handled is one of the most expensive beliefs in commercial real estate.
For buildings in jurisdictions that do not require an elevator service contract, operating without one is a legitimate option worth considering. If you are paying for maintenance that is not being delivered, switching to an on-call service model may reduce costs while giving you more control over when and how work is performed. This approach requires more active management, but for buildings willing to take ownership of their elevator program, it can be an effective alternative to contracts that provide little actual value
Buildings that approach elevator management with clear expectations, proper documentation, and independent oversight consistently experience better equipment performance, lower costs, and fewer surprises than buildings that simply pay their monthly service fee and hope for the best.
Frequently Asked Questions
Is my elevator service provider responsible for making sure my elevator passes inspection?
In most cases, no. Unless your contract specifically states that the service provider is responsible for ensuring the elevator passes inspection, the responsibility falls on the building owner. Most standard elevator service agreements do not include this provision. Building owners should review their contracts carefully and consider negotiating for explicit language that assigns inspection responsibility to the service provider with consequences for failure.
How can I verify that my elevator service provider is actually performing maintenance?
Maintaining independent records is essential. Log when technicians arrive and leave, document what work was reported as completed, and track callbacks and service issues over time. Tools like ElevatorApp.com can help automate this tracking. You can also request detailed service reports from your provider after each visit and compare them against your own observations. If your provider cannot or will not provide documentation, that itself is a warning sign.
What should I do if I suspect my elevator has not been properly maintained?
Consider engaging an independent elevator consultant to conduct an audit of your equipment and maintenance records. A consultant can assess the current condition of your elevator, identify deferred maintenance or developing problems, and provide documentation that can be used to hold your service provider accountable. Acting before a major failure occurs is always less expensive than dealing with the consequences of neglected maintenance.
Why do elevator service contracts seem to protect the service provider more than the building?
Elevator service contracts are typically drafted by the service provider using standard templates that have been refined over years to minimize the provider’s liability and maximize their flexibility. Building owners who sign these contracts without negotiation accept terms that were not designed with their interests in mind. Working with an elevator consultant to negotiate contract terms or using building favorable contract templates can help rebalance the agreement.
Does my building legally need an elevator service contract?
Requirements vary by state and jurisdiction. Some jurisdictions mandate that buildings maintain an active service contract, while most do not. Check with your local authority having jurisdiction to understand your specific requirements. Even where contracts are not required, buildings remain responsible for ensuring elevators pass inspection and meet all code-required testing and maintenance standards.
What are the risks of operating without an elevator service contract?
The primary risk is being unprepared when problems occur. Without established relationships with qualified service providers, you may face longer response times, higher emergency rates, and limited options when an elevator goes down. Buildings without contracts must also be more proactive about scheduling preventive maintenance and tracking service history, since no provider is obligated to remind you when work is due. This all can be completed with the ElevatorApp.com which makes being code compliant easy for buildings.
How do I transition from a service contract to on-call service?
Start by identifying two or three reputable elevator service providers who are qualified to work on your specific equipment. Establish relationships with them before your current contract ends. Review your maintenance control program records to understand what work has been performed and what is due. Create a schedule for code-required testing and preventive maintenance tasks so nothing falls through the cracks. The ElevatorApp.com can do this in a few clicks as well as an elevator consultant can help you develop a management plan that ensures your building stays compliant and your equipment remains reliable.
Can I negotiate better terms in my elevator service contract?
Yes. Contract terms are negotiable, though many building owners do not realize this. Specific maintenance frequencies, clear definitions of covered and excluded items, response time commitments with meaningful consequences, exit clauses if performance standards are not met, and provisions for independent documentation and auditing are included as key areas to be negotiated. Competitive bidding among multiple providers also creates leverage for better terms.
If you have questions about your elevator service contract or want to understand whether you are getting the value you are paying for, an independent elevator consultant can provide the clarity and accountability your building needs. Taking control of your elevator management starts with understanding what your contract actually provides and what it leaves exposed.