The elevator industry has four major OEMs (Original Equipment Manufacturers): Otis, KONE, Schindler, and TK Elevator. Regional independents operate in every market. The question is not which company is "best." The question is: which contract structure is right for your building?
Here is what no vendor page will tell you. If you are already considering a switch, see our guide to switching elevator companies for the full process from contract review to transition day.
The Four Nationals
Otis is the largest global elevator OEM. Strong nationwide coverage. Services its own equipment plus legacy North American Elevator and GE inventory.
KONE is a Finnish company with solid U.S. metro presence. Strong market share on MonoSpace MRL (Machine Room Less) systems. Their proprietary drive architecture is difficult for independents to service.
Schindler is a Swiss OEM known for PORT destination dispatch technology in high-rises. Coverage in smaller markets can be thinner.
TK Elevator (formerly ThyssenKrupp) carries a broad legacy portfolio. Like Schindler, stronger in major metros than suburban markets.
Regional independents can legally service OEM equipment using OEM-equivalent parts. For non-proprietary equipment, they are often the most cost-effective option.
The Comparison Table
| Factor | OEMs (Otis, KONE, Schindler, TK) | Regional Independent (FM) | O&G Independent |
|---|---|---|---|
| Proprietary parts lock-in | Yes | No | No |
| Typical SLA language | "Best efforts" | Negotiable (specific hours) | Negotiable |
| Multi-year service bundled with mod | Often | No | N/A |
| Open-protocol option | Ask explicitly | Standard | N/A |
| FM premium vs independent | +20-40% (varies by scope) | Baseline | Lower |
Note: The 20-40% OEM premium is not uncommon, but property managers must be careful to compare scopes and coverages apples-to-apples. It's often the independent vendor is cheaper because they're offering less base coverage. A conversation with the OEM - and even showing them the competitive quote - is likely to get them to match.
The Proprietary Lock-In Problem
When an OEM modernizes your elevator, they install their proprietary controller. Otis puts in an Otis controller. KONE puts in a KONE controller. This locks you into that vendor for the life of the equipment; typically 20-30 years.
Third-party mechanics can work around these systems to a degree. But for software updates, diagnostics, and replacement parts, you are on the OEM's timeline and price list.
The alternative: open-protocol controllers (GAL, MCE, SmartRise). Any qualified independent can service them. That competition keeps your ongoing costs in check.
The question to ask before signing any modernization contract: "Is this controller open-protocol or OEM-proprietary? What does that mean for my service options after the warranty period?"
If the vendor pivots to warranty benefits instead of answering directly, that tells you something.
Response Times: Contract Language vs Reality
Every OEM sells responsiveness. "24/7 coverage." "Rapid response." The standard contract uses language like "best efforts" or "as soon as practicable." That is not an SLA (Service Level Agreement). There is no enforcement mechanism.
What happens in practice: OEM response times are generally good for entrapments (30 minutes to 1 hour). For non-entrapment outages (elevator out of service, door issues, fault codes), actual response often runs 3-4 hours or longer. None of this violates the contract because the contract commits to nothing specific.
The problem: It's very rare a contractor will hold themselves to specifics. If the sales person says something, that's usually a corporately curated statistic and it may not be in the agreement. Adding a response time guarantee could be valuable to the building, but it will also carry a premium monthly cost.
A contract with real teeth includes:
- A specific response window in hours (separate for entrapments and standard outages)
- A penalty clause or service credit if the window is missed
Most OEM standard contracts contain neither. Independents are often more willing to negotiate specific terms because winning your building requires offering something the OEM does not.
When OEM Makes Sense
During active warranty. Most OEM warranty terms require OEM service. Using an independent typically voids coverage.
For complex proprietary systems. High-rise destination dispatch or deeply integrated OEM controls are genuinely difficult for independents to service at the same level.
When switching costs exceed savings. Mid-life equipment on a functioning OEM contract may not be worth the friction of switching.
When Independent Wins
For new modernization specs. Before the controller is installed, you control the spec. Bid it open-protocol and watch independents compete on price, SLA, and relationship.
For older non-proprietary equipment. Much of the country's pre-1990 building stock was never proprietary. Any competent firm can service it.
When you need defined SLA terms. If getting a response guarantee with penalty clauses matters to your operations, an independent has more incentive to offer it.
What About Testing and Compliance?
Full Maintenance contracts typically include routine periodic maintenance visits but may exclude certain regulatory tests. The most common exclusion: the Category 5 (CAT5) full load test - the 5-year full load test required by most states.
How it works (varies by state):
- New York City: The building needs to hire a separate witnessing agent to certify the elevator company completed the test properly. That witnessing agent will file the paperwork with the city.
- Connecticut: It's far more lax. The elevator company self-certifies and tags the elevator equipment. The inspector simply checks for this tag every 18 months.
The process is specific to what the Authority Having Jurisdiction (AHJ) decides. Ask your service provider: "Does your FM contract include the CAT5 full load test, or is that billed separately?" If it's excluded, get the typical fee range in writing before you sign.
Five Questions Before You Sign
-
Is the controller proprietary or open-protocol? Get the manufacturer name in writing. If proprietary, ask them to price the open-protocol alternative.
-
What does the response SLA actually say? Pull the exact contract language. Push for specific hours with a penalty if missed.
-
What triggers a service call vs a maintenance visit? Get the exclusions list in writing. "Wear items" should be listed specifically.
-
What are the warranty terms and who must service during that period? Separate warranty obligations from bundled service agreements.
-
What is the exit provision? A contract without termination-for-cause language is one-sided.
The Bottom Line
Property managers are not elevator experts. OEMs know this. The default contract structure favors the vendor on proprietary lock-in, vague SLA language, and multi-year bundling.
That does not make OEMs bad companies. Otis, KONE, Schindler, and TK Elevator all have real technical expertise. The question is whether their default contract is the right one for your building over a 20-year horizon.
Ask the five questions. Get the controller spec in writing. If anything is unclear, get an independent review before you commit.
Comparing companies is step one - understanding their contracts is step two. Learn how to read your service agreement before signing.
ElevatorBlueprint provides independent educational content for property managers and building owners. This is not legal advice or a guarantee of specific outcomes.
Cost calculators, compliance data, contract analysis, and emergency guides.