Timeline Modular ElevatorSeptember 14, 2017
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Elevator Contract Exclusions – Shop Them All
For some, shopping is about more than finding bargains, it is an obsession. They can’t quit comparing apples to apples and finding success in each penny saved. This is despite the fact that quite often going to store after store means burning more gas and time than actual savings generated. Of course, the more costly the item, the more justification there is for doing a thorough job of looking around and comparing products.
Elevators are not Apples
When it comes to elevators, it seems like everything is expensive, especially when considering repairs that are outside of the warranty or maintenance contract. People feel trapped by the contract and elevator company, so, often the work is approved without considering other options. But shopping around can help lessen the overall cost of elevator ownership.
If, like most buildings owners, you have a standard oil and grease agreement, you may find that there is lots of (necessary) stuff left outside of the contract or that has been excluded. For instance, service calls and parts are usually specifically not covered, and good luck getting any major repair to fall under the current maintenance agreement you have. Even full service agreements have their limits. Usually, for repairs outside of the agreement, you will be required to get a quote for the work contractually excluded and only after approval will the work begin. What your current provider may have failed to tell you is that in most circumstances you can ask a different elevator company for bids as well. You get to do some shopping.
We can all be Reasonable
Keep in mind, exclusions are reasonable in most cases; owners are just unaware of them until the elevator needs work that is outside of the contract. Here are some of the more common exclusions you need to keep in mind:
→ Vandalism or elevator misuse – This is not just graffiti in the elevator car but any intentional act that hurts the operation or aesthetic appeal of the elevator. An elevator door that has been hit one too many times with a cart can be an example. It is excluded because vandalism is difficult to predict and there’s no way to get a firm handle on the costs until after there’s a problem.
→ Obsolete parts – most elevator contractors and contracts charge a premium for the difference between the normal purchase cost of a regularly available part and the cost to custom manufacture it or find someone that will. Oftentimes, when you start hearing “modernization” mentioned by your technician, it is because parts are getting hard to find.
→ Modernization – It is rarely covered in most elevator contracts. Modernization is excluded because it is a major update to systems and can be quite costly. A modernization really requires a second opinion and an estimate.
→ Proprietary Parts – Proprietary parts are not always excluded directly, but having access to parts and tools that are limited to a specific company makes getting a different company to work on your elevator or bid for work extremely difficult. Never purchase an elevator with proprietary parts and/or control systems. Doing so will severely limit your options for choosing a maintenance service provider.
→ Damaged underground pipes (for hydraulic elevators) – Corrosion can cause real headaches, especially regarding old elevators. Fixing corrosion, otherwise known as replacing pipes, can be a huge cost and is excluded in most contracts.
→ Items outside of the control or scope of the elevator contractor – This can mean a lot of things including, but not limited to, major things like power surges, power failures, or lightening strikes or minor problems caused by debris in door tracks that are preventing doors from functioning. Sometimes, even keys left in the wrong position can generate a service call and can e excluded by maintenance contracts. We have all heard of the $1000 light bulb. If light bulbs are not covered in the service agreement, they can indeed cost you a precious amount.
Especially when it comes to modernization and pipe replacement it is more than just a simple apples to apples comparison for pennies on the dollar. These are very expensive jobs and multiple bids need to be obtained. Extensive upgrades to the elevator cab should be open for multiple bids, as well. Remember, almost any elevator tech can work on any other elevator regardless of the brand (only proprietary parts can be an issue). So, do some shopping and see what others have to offer. The difference could be thousands of dollars.
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