When developers break ground on new buildings especially hotels, retailer, banks, apartments, medical office buildings, and others under pressure to hit tight debt-service thresholds they often opt for the least expensive elevator system. What seems like a smart cost-cutting decision initially can quickly spiral into escalating operational expenses, frequent breakdowns, and entrapments once turned over. As an elevator consulting firm immersed in the vertical transportation industry, we’ve witnessed this pattern countless times. Here, we’ll explore a detailed case study illustrating why investing in informed elevator installation decisions up front and partnering with an elevator consultant avoids hidden costs, reduces operational headaches, and safeguards long-term value.
A Common Scenario with Costly Consequences
A regional hotel developer mastering cost control routines specifies a proprietary, OEM brand elevator during construction. The purchase price sits 10–20% below bid comparisons for equivalent non-proprietary or hydraulic systems. A hydraulic system are usually available to install for these type of applications, although are over looked. On the surface, this seems like savvy placement of capital. Unfortunately, there’s a catch since proprietary systems lock the hotel into a single OEM vendor for maintenance, repairs, parts, and eventual future modernization.
Within the first three years of operation, elevator problems emerge from sluggish elevator dispatching, frequent service interruptions, leveling inconsistencies, strange noises to name a few. And every callback summons the OEM’s service team, which charges premium rates under an exclusive contract. By year three, the property has already paid more than double the initial difference in installed cost if not more just to keep the doors running. These expenses don’t even account for guest frustration, potential liability from entrapments, or the reputational cost of unplanned downtime.
How an Elevator Consultant Turns the Tide
By engaging an elevator consultant early in the development process, building owners insert strategic oversight that can shift outcomes dramatically:
1. Specification Expertise An elevator consultant analyzes building use patterns, peak traffic demands, local code, equipment options, and lifecycle cost models. We lay out a comparison of proprietary versus open source elevator systems, factoring in predictive maintenance costs and parts availability.
2. TCO Analysis Rather than focusing on upfront capital expense, elevator consultants craft a Total Cost of Ownership (TCO) forecast based on empirical failure rates, service frequency, and cost escalators for proprietary parts. Even a 12% cheaper installation can be eclipsed by 150–200% higher service costs in 5–7 years.
3. Proposal Negotiation When the developer solicits quotes, an elevator consultant defines an apples-to-apples comparison. Non-proprietary systems become easily comparable, offering competitive long-term return on investment. With transparency, developers can better weigh short-term wins against lifecycle burdens.
4. Avoiding Vendor Lock-In Specifications favor elevator systems or universal components accessible to multiple elevator service providers. This contractual flexibility encourages competitive service bids, limiting escalation in labor or spare-parts costs. When rebids occur every three to five years, the building isn’t held hostage to a single OEM.
5. Modernization Strategy A professional elevator consultant maps an elevator installation and elevator modernization roadmap aligned with budget cycles. When decades long elevator renovation is due, the building already has performance baseline metrics, making strategic upgrades more efficient, and avoiding emergency rebuilds.
Case Study: The Hidden Costs of Elevator OEM Exclusivity
Consider a Mid-Atlantic hotel that opened in 2022 with a proprietary elevator installation selected for being 12% less expensive than an open source non-proprietary alternative. By 2025, the property had undergone 18 unscheduled service calls for leveling issues, door malfunctions, overheating and odd noises. Each call was performed by the OEM’s certified technicians at premium rates sometimes 40% higher than other elevator service providers.
Cumulatively, the facility had spent nearly three times the original 12% savings on unplanned elevator service without counting guest disruptions or executive frustration. Elevator maintenance invoices routinely outpaced capital amortization. Meanwhile, obtaining spare parts required 60–90 days lead time, prolonging downtime and guest inconvenience.
After retaining an elevator consulting firm after installation, ownership initiated a plan to rebid service contracts, expand service intervals where safe and code compliant, and invest in upgrades. Projected savings showed a 35% reduction in annual elevator expenditures. Most importantly, the hotel retained full flexibility it was no longer tied to a single, proprietary OEM system.
Why Proactive Elevator Consulting Matters
Strategic Investment Over Short-Term Savings
The implantation cost differential between proprietary and open-source systems typically 10–20% amounts to a rounding error when compared to 3–5 years of premium OEM service fees and parts markups.
Operational Reliability
Every day an elevator is down or underperforming, the hotel incurs guest dissatisfaction, staff overtime, or even safety risks. An elevator consultant designs systems that are not only cost-effective but also operationally robust.
Risk Management
Unknown service gaps, OEM service limitations, or proprietary locked components can tear a building’s elevator operations apart. Elevator consultants conduct compliance analysis, perform vendor risk audits, and ensure structured modernization and new installation planning.
Negotiating Leverage
Elevator consultants empower building owners to solicit competitive bids with standardized specs. This levels the playing field and compels OEMs to sharpen their pricing and service quality proactively. Also allowing non-proprietary systems to be installed.
Recommendations for Development Teams
For developers, property asset managers, and facility directors building new hotels or multi-floor structures, here are essential steps to avoid procurement misfires:
· Engage an elevator consultant before finalizing equipment selections.
· Require a cradle-to-grave TCO analysis comparing proprietary and open source systems.
· Build vendor agnostic language into specifications avoid single-source exclusivity wherever possible.
· Plan for elevator service provider flexibility: include re-bid triggers and service KPIs in contract terms.
· Map modernization timing aligned to building lifespan and avoid premature modernizations.
When you shift your viewpoint from “capital expense” to “lifecycle asset management,” a modest up-front investment in expertise yields outsized returns. Your elevator systems become reliable, code-compliant revenue center enablers not hidden liabilities plagued by vendor lock-in and cost escalation.
Final Thoughts
Investing 10–20% more on elevator installation and elevator consulting may feel steep at first. But real-world case studies show that, within three years, hotel facilities and other low rise buildings can rack up service costs equating to two or three times that initial savings. These aren’t abstractions they’re the stark result of OEM exclusivity, reactive maintenance, and absence of strategic oversight.
The Elevator Consultants combine technical knowledge, code understanding, and lifecycle insights to guide building ownership toward intelligent decision making. When vertical transportation thrives, everything in the building runs smoother guests smile more, staff breathe easier, and assets appreciate faster. Don’t let budget pressures at opening blindsight your property into hidden operating expense traps down the line.
FAQ’s
Why should I hire an elevator consultant during new building construction?
Hiring an elevator consultant ensures you make informed, long-term decisions. They help you select the right elevator system for your building’s needs, avoid proprietary equipment traps, and reduce future maintenance and repair costs. Consultants provide unbiased expertise that developers, architects, and general contractors often overlook.
What’s the difference between proprietary and non-proprietary elevator systems?
Proprietary systems are tied to a specific manufacturer and usually require that company’s technicians and parts, limiting your flexibility and increasing costs. Non-proprietary systems use universal components, allowing for competitive bidding, easier maintenance, and significantly lower lifetime costs.
How much can elevator consulting save me in the long run?
While hiring an elevator consultant might add 10–20% to your initial installation cost, it can save 100–200% in repair, maintenance, and modernization costs over the first 5–10 years of building operation. It also protects you from costly downtime and vendor lock-in.
What problems come from installing the cheapest elevator in a new building?
Going with the cheapest elevator often leads to frequent breakdowns, long repair wait times, expensive service contracts, and poor tenant or guest experiences. These systems typically lack long-term support, and their limited design flexibility can trap you into exclusive, high-cost service agreements.
When is the best time to bring in an elevator consultant?
The earlier, the better. Ideally, an elevator consultant should be involved during the planning or architectural phase of a new development. This allows for optimal shaft design, equipment selection, and elevator vendor negotiation preventing costly mistakes and inefficiencies down the road.