Elevator installations are needed for almost all new buildings over two stories not only for code but also for convenience of people accessing and using the building, The choice of elevator equipment can have significant long-term impacts on maintenance, costs, and functionality. One major decision developers face is whether to install proprietary or non-proprietary equipment. The developers will usually install a proprietary system and will usually have the elevator company OEM (original equipment manufacturer) that they like to spec and or install in the building. This is usually decided even before the building is built. In this real-life situation involving a six-year-old building that installed a proprietary machine roomless (MRL) elevator and examine the pros and cons of such a decision.
The Case Study: A Six-Year-Old Building with a Proprietary MRL Elevators
Approximately six years ago, a newly constructed building developer opted for an MRL elevator—an increasingly popular choice among developers due to its space-saving design. It is common that building owners have no idea what type of elevator is being installed. The building owner just knows they need an elevator. In about 90% of the time the developer does not consult an elevator consultant during the planning and installation phases. Instead, they chose one of the major original equipment manufacturers (OEM) without fully understanding the implications of installing proprietary technology. The developer is doing their job by installing elevators as needed or as required by code and completing the project within budget and on time. The building owners need to pay attention and ask the questions about the elevator that is being installed. This is where the big disconnect happens.
The major OEMs in the elevator industry—Otis, Schindler, Kone, and TK Elevator—are known for their reliable products. However, they also produce proprietary equipment, which can pose long-term challenges. This particular building opted for a proprietary elevator system from one of these companies, and while the initial installation appeared to go smoothly, the building has experienced numerous operational issues over the years. The building started to have issues with the elevators immediately however if you are not knowledgeable about the elevator industry and your warranty this becomes costly to the building owners.
Multiple elevator service providers, including the OEM itself, have attempted to fix the recurring problems, but to no avail. The building has looked at several different options just to get their elevator up and running, it is a new elevator and they should not be having these issues. Today, the elevator is completely non-functional because it is not running. The building owner recently received a proposal of nearly $10,000 for a thorough troubleshooting assessment and an additional $1,500 for a software upgrade. These proposals came from the original OEM of the elevators. The building owner is completely flustered that new elevators are having such hard issues. This situation has raised concerns about the sustainability of proprietary elevator systems and the lack of foresight during the installation process.
What Went Wrong?
The problem started at the early stages of the building’s development when the building owner, developer, and architect did not address all of the needs of the equipment being installed. By not consulting with an independent elevator consultant, the developer relied entirely on the OEM’s recommendation. While proprietary MRL elevators offer several advantages, such as space savings and efficient design, cost, and ease of installation, they also have significant drawbacks, particularly regarding long-term service and maintenance.
Because the installed equipment was proprietary, only the OEM or a limited number of service providers had access to the necessary tools, parts, and software required to service it. This restricts competition, meaning building owners may have limited choices when seeking maintenance or repairs, which often leads to higher costs. In the case of this building, even with multiple providers attempting repairs, no one has been able to successfully resolve the elevator’s issues, leading to expensive proposals for more diagnostic work and potential upgrades. The elevator companies that were not the original OEM worked hand in hand with the OEM to try to troubleshoot and fix the elevators, however, the OEM is the only one that has all the tools and the needed software upgrades for the elevators. This is the challenge with installing proprietary elevators
Pros and Cons of Proprietary Elevator Systems
The building’s case illustrates some of the broader challenges with proprietary elevator systems. Some high-level basic pros and cons.
Pros of Proprietary Equipment
- Quick Integration: OEMs usually have a well-integrated supply chain for their equipment, meaning that their elevators, parts, and software are easily accessible for a quick installation
- Innovative Technology: Proprietary elevators often feature the latest technology, which can result in smoother operation, faster installation, and more space-efficient designs. Although if space is not an issue there are other systems.
- Cost: The cost to install OEM elevators is cost-effective since the OEM wants their proprietary equipment in buildings to lock in so many other costs like upgrades, ongoing maintenance, the ability to obsolete, control the market, and many more.
- Relationship: The major OEMs have a relationship with the developers or architects giving them a foot in the door to spec their equipment only for the installation in a new building. This makes the developer’s and the architect’s job extremely easy when they already have all the information, they need to install the proprietary equipment.
Cons of Proprietary Equipment
- Restricted Service Options: Since the equipment is proprietary, only certified technicians from the OEM can access parts, diagnostic tools, and software, limiting competition and often increasing costs.
- Costly Repairs and Upgrades: As seen in the case study, building owners may face expensive proposals for repairs and upgrades, even for simple fixes. The OEM has full control of when parts are available and what the cost will be, really controlling the market.
- Obsolescence Risk: Proprietary systems usually become obsolete more quickly than non-proprietary systems, forcing building owners to upgrade or replace parts—and sometimes the entire system—more frequently than expected.
- Lack of Transparency: Without an elevator consultant advocating for the owner during installation, developers may not fully understand the long-term costs and commitments involved with proprietary equipment.
The Importance of Consultation During Elevator Installation
This case highlights a critical lesson for developers, architects, and building owners alike: the importance of consultation with an independent elevator consultant during the design and construction phase. An elevator consultant can offer unbiased advice, evaluate all available options, and ensure that the chosen system aligns with both the building’s immediate needs and long-term operational goals.
Developers, architects, and owners should also engage in open communication about the costs associated with proprietary equipment. In some cases, installing a proprietary system may be a strategic decision for the building’s specific needs, especially if they are aware of the potential for higher maintenance costs and the need for future upgrades. However, without clear understanding and planning, building owners could find themselves in a position similar to our case study, where unforeseen repair costs and service limitations lead to operational disruptions and financial strain.
Final Thoughts
When it comes to installing elevators, one size certainly does not fit all. Proprietary equipment, such as the MRL system used in our case study, can offer several benefits but also comes with a host of challenges. The key takeaway here is that developers, architects, and building owners must work together closely, with the guidance of an independent consultant, to fully understand what they are getting with proprietary equipment. They must consider the short-term benefits with the long-term costs and service limitations to make an informed decision.
For the building in this case , the lack of initial foresight has resulted in ongoing frustration and expensive repair proposals. But with proper planning and consultation, other developers can avoid similar pitfalls and ensure that their elevator systems run smoothly for years to come.
FAQ’s
1. What is a proprietary elevator system, and how is it different from non-proprietary systems?
A proprietary elevator system is one where the design, parts, tools, and software are owned and controlled by the original equipment manufacturer (OEM), such as Otis, Schindler, Kone, or TK Elevator. This means only the OEM can service the system, limiting the options for maintenance and repairs. Non-proprietary systems, on the other hand, use parts and software that are more widely available, allowing a broader range of service providers to perform maintenance, often at a lower cost.
2. What are the potential long-term costs of installing a proprietary elevator system?
The long-term operating costs of proprietary elevator systems can be higher than non-proprietary systems. These costs include more expensive repairs due to restricted access to parts and service tools, potential software upgrades, and the risk of the system becoming obsolete faster. Additionally, building owners may face higher maintenance contracts because only a limited number of service providers and usually only the OEM can work on the proprietary equipment.
3. Can I switch from a proprietary elevator system to a non-proprietary one?
Switching from a proprietary system to a non-proprietary one can be difficult and costly. In most cases, you would need to replace significant portions of the elevator system, including parts and control software, which can be expensive and time-consuming. It is advisable to consult an elevator consultant before making any decisions about a system replacement.
4. Why is it important to hire an elevator consultant during the planning phase of construction?
An independent elevator consultant offers unbiased guidance on the best elevator systems for a building’s specific needs. They can help developers understand the long-term implications of choosing proprietary versus non-proprietary equipment, ensure that the installation meets all regulatory requirements, and advocate for the building owner’s interests to avoid unexpected costs and service challenges later on.
5. What should building owners consider before purchasing or developing a property with a proprietary elevator system?
Building owners should carefully consider both the short-term and long-term implications of owning a proprietary elevator system. This includes evaluating the potential for higher maintenance costs, limited service provider options, and the risks of obsolescence. Owners should also assess whether they are willing to pay for ongoing software updates and potential upgrades to keep the system functional over time.