This document discusses key things to look for when comparing elevator service contracts. It identifies 5 important aspects: 1) compliance with local maintenance control program requirements, 2) inclusion of safety testing, 3) billing only for overtime callbacks, 4) specifying required maintenance time per unit, and 5) including a clause to cancel for cause with time to cure issues. Elevator service contracts have evolved over time with less coverage, so it is important to understand what is and isn't included.

1. PRESENTS
What’s in your
ELEVATOR SERVICE
CONTRACT?

2. At many buildings,
the elevator service
provider also
provides the elevator
service contract.

3. Once upon a time, differences in coverage
between service contracts were minimal and
most of them were fairly comprehensive.

4. Over the years, however, these agreements
have evolved and coverage has been
downgraded.

5. For example, some full service maintenance
contracts no longer include safety testing.
This might go unnoticed, until you receive
that unexpected (and unbudgeted!) invoice
for performance of elevator safety tests.

6. What are the things
you should look for
when comparing
elevator service
contracts?

7. Here are my top five…

8. 1. Maintenance Control Program (MCP)
Requirements as administered by the State of
Washington.

9. Maintenance Control Program, or MCP, is a
program or plan to ensure that an elevator or
escalator is maintained correctly throughout its life.
It is mandatory in any jurisdiction that has adopted
the ASME 17.1 2000. The State of Washington, City
of Seattle and City of Spokane are among these
jurisdictions.

10. The MCP as administered in the State of Washington
as been around since 2012, so most Agreements
should include language to this effect. However,
MCP requirements differ depending upon within
which jurisdiction the equipment is located.
Equipment within the state of Washington has
stricter MCP requirements than equipment located
within the City of Seattle.

11. Hydraulic elevators require less time to meet MCP
than traction elevators.
Make sure you understand how many hours have
been factored into your pricing to meet the MCP
requirements for your jurisdiction, and that it meets,
but does not exceed what those are.

12. 2. Safety testing for 1 and 5-year code
required tests.

13. As mentioned earlier, safety testing, at least for
traction elevators, used to be standard in any “full
service” maintenance contract.
If you consider a service contract without testing
included, try to negotiate the testing price up
front so that you are not held hostage when the
testing is due.

14. 3. Bonus Time Only for overtime callbacks.

15. Bonus Time Only (or BTO) refers
to the amount the customer is
billed when callbacks outside the
regular hours of the service
contract are requested. It’s
advised that your contract include
BTO, then you pay only the
difference between the regular
time rate and the overtime rate for
the time when the mechanic is on
the job, and if you’re a really good
negotiator, for the travel time as
well.

16. 4. Required maintenance time per unit.

17. Most elevator service contracts use the term “periodic”
to describe the frequency of visits. If you include
frequency of service and length of visits in the service
contract, the monthly price may be higher, but your
contract will have the teeth you need to hold the
provider to a certain standard. After all, who will get
to define the term “periodic” if a concern about the
quality and frequency of maintenance visits occurs?

18. 5. Cancellation for cause with
time to cure.

19. A good elevator service provider
will invest time and money into
your elevator system over the life
of the service contract. To that
end, it is understandable that an
option to cancel the service
contract “at will” can cause the
provider heartburn. However, a
clause to cancel with cause that
includes a provision for time to
cure, should be acceptable to any
service provider who has
confidence in their ability to
deliver.

20. Questions?
Call or write.
We’ll be happy to help.

21. CALIFORNIA
23211 South Pointe Drive
Laguna Hills, CA
949-348-9711
john@hkaconsulting.com
NEVADA
3765 E. Sunset Rd., Ste. B-5
Las Vegas, NV
702-319-9711
jim@hkaconsulting.com
WASHINGTON
15811 32nd Ave. NE
Lake Forest Park, WA
206-954-1821
lchain@hkaconsulting.com