A well-negotiated elevator maintenance service contract can save you substantial time, money, and headaches. Unfortunately, many building owners and managers fall victim to hidden fees, unclear terms, and inflexible contracts that drive up costs unnecessarily.
There are strategies to negotiate better contracts and avoid hidden fees to ensure you get the best value from your elevator service agreements.
1. Understand the Scope of Services
Before entering contract negotiations, it’s crucial to understand exactly what services your elevator system requires. A clear understanding of your system’s make and model, age, condition, and building operational needs will help you evaluate the relevance of the services offered.
Key Tips:
- Review Current Contracts: Analyze your existing agreements to identify unnecessary services or recurring issues.
- Prioritize Needs: Determine whether you need a full-service agreement, a parts-and-labor plan, or a basic maintenance contract.
- Gaps : Have an elevator consultant identify gaps in maintenance service contract.
Result: By tailoring the scope of services and tailoring a service contract for your building, you avoid paying for redundant or irrelevant items.
2. Watch for Hidden Fees
Hidden fees are a common source of frustration in elevator service contracts. These fees can be buried in vague terms or unexpected clauses, leading to surprise costs.
What to Look For:
- Exclusions: Many elevator service contracts exclude essential items and have vague terms.
- Overtime: Understand after-hours calls or expedited calls can come with a surcharge.
- Code Required Task: Some contracts charge separately for code-required ASME A17.1 task even though they should be included or can be added as part of the contract.
Pro Tip: Review the fine print. Identify and flag hidden fees, helping you with favorable terms and avoiding unfavorable contracts.
3. Leverage Competitive Bidding
Competition is a powerful tool for securing a fair contract. Soliciting bids from multiple elevator service providers encourages transparency and gives you leverage in negotiations.
How to Execute:
- Prepare a Detailed Request for Proposal (RFP) Maintenance Specification and Bid Form: Specify your needs, including response times, preventative maintenance schedules, hours, coverage, etc.
- Compare Apples to Apples: Ensure all bids use the same scope of work to make comparisons fair.
- Ask for Clarifications: Don’t hesitate to ask bidders to explain unclear pricing or service term, this will level the bids.
Result: Competitive bidding can drive down costs and give you a clearer picture of elevator industry standards.
4. Negotiate Flexible Terms
Rigid contracts can lock you into long-term commitments with little room for adjustment in the event that the elevator service provider is following the elevator maintenance service contract. Negotiating flexible terms ensures you retain control over your elevator service agreements to have what’s best for the building’s operations.
Strategies for Flexibility:
- Longevity Terms: Avoid contracts longer than three to five years unless significant savings are offered.
- Performance Clauses: Include clauses that allow for contract termination if service quality drops and non-performance.
- Autorenewal: Make sure the contract does not auto renew locking the building in.
Pro Tip: Flexibility protects you from being stuck with a subpar elevator service provider or paying for services you no longer need.
5. Use a Custom Contracts
Service providers provider may encourage the building to sign their contract since this is their expertise. This allows areas for them to potentially cut corners leaving you with incomplete maintenance or unresolved issues. Incorporating provisions into your contract ensures accountability.
Buyer beware:
- Vague: It is common for elevator service provider to include terms like “systematically” periodically” “at the discretion “.
- Control: The building should have control of their contract to keep their elevators and escalators up and running. Allowing for obsolescence are detrimental. Parts availably term should be clear to keep equipment running.
- Included/ Excluded: What exactly is included and excluded should be clearly spelled out so the building and building personnel understand the contract.
Result: Having a contract with terms and conditions written for the building will decrease cost and give peace of mind.
6. Consult an Elevator Expert
Navigating the complexities of elevator service contracts can be daunting. An experienced elevator consultant can help you work through all your elevator needs in the event that you feel it is needed.
How They Help:
- Contract development: An elevator consultant can provide you with a scope of work based on your building’s needs.
- Proposal Review: Consultants can evaluate contract proposals to ensure fairness and
- Cost Benchmarking: They can compare your current contract’s pricing to industry norms, service best practices, etc. They can help provide guidance to plan for future needs.
- Tailored Advice: An elevator consulting firm understand the unique needs of your building and help craft a contract that aligns with them.
Pro Tip: Investing in expert guidance if needed can save you thousands of dollars in the long run by addressing your needs, avoiding overpayment and service disruptions.
Overall, negotiating better contracts and avoiding hidden fees starts with preparation, attention to detail, and a commitment to transparency. By understanding your needs, identifying hidden charges, leveraging competitive bidding, and including accountability measures, you can create a contract that protects your interests and maximizes value. It happen far too often that buildings wait until they are in distressed, elevators down and need help immediately allowing the elevator service provider to take control
For expert assistance in navigating elevator contracts, contact The Elevator Consultants today. Our team of professionals specializes in optimizing contracts, minimizing costs, and ensuring reliable vertical transportation for your property.
Don’t let a bad contract cost you more than it should. Reach out now to get started!
5 Frequently Asked Questions (FAQs) About Negotiating Better Elevator Contracts and Avoiding Hidden Fees
1. What are some common hidden fees in elevator service contracts?
Hidden fees often include exclusions for specific parts like and obsolesces. These fees can significantly increase costs if not addressed during contract negotiations. A thorough review of the contract terms can help identify and eliminate these surprises.
2. How can I ensure I’m not overpaying for elevator services?
To avoid overpaying, solicit bids from multiple providers to compare pricing and service scope. Engage an elevator consultant to benchmark costs against industry standards and review contract proposals for unnecessary or overpriced services. Competitive bidding and professional oversight ensure you receive fair pricing.
3. Why should I do an elevator audit?
An elevator audit ensures accountability and service quality evaluating your provider’s performance. These audits verify that maintenance tasks are completed as promised and that your system remains complaint and running efficiently. Protect your investment and keeps providers accountable.
4. Should I sign a long-term elevator service contract?
Long-term contracts can lock you into unfavorable terms if service quality declines or your needs change. It’s often better to negotiate shorter contracts (three to five years) with performance clauses and flexibility for adjustments. This approach provides better control over costs and service quality. You should also include an out clause in the unfortunate event that you need to use it.
5. How can an elevator consultant help with contract negotiations?
An elevator consultant offers expert insight into the intricacies of service contracts. They can identify hidden fees, ensure fair pricing, and tailor the agreement to meet your building’s specific needs. Their expertise ensures you secure a contract that delivers value, avoids unnecessary costs, and keeps your system running efficiently.
Have elevator questions? Contact The Elevator Consultants for expert advice on optimizing your elevator contracts and avoiding costly pitfalls!