Your elevator contract was not written with your interests in mind. It was written to keep you in it.
The evergreen clause - the automatic renewal provision - is the anchor. Everything else builds from it. Miss your cancellation window by one day and you're locked in for another term with no leverage.
Here are the nine tricks you'll see in real contracts.
1. The 90-Day Auto-Renew Window
The contract rolls over automatically unless you provide written notice 90 days before expiration. Most PMs don't think about their elevator contract three months out - they think about it when the renewal notice arrives, which often comes 30 days out, after the window has already closed.
Counter: Set a calendar alert the day you sign. If your contract expires March 31, your cancellation notice is due by January 1. Send it via certified mail. Verbal cancellation doesn't exist in this industry.
2. The "At Our Discretion" Escalator
The clause ties annual increases to CPI "or at the Contractor's discretion, whichever is greater." CPI runs 2-4%. That discretion carve-out means 8%, 12%, or 15% increases - and your only option is to cancel, which requires 90 days' notice. Thirty days' notice of a price increase on a 90-day cancellation contract is not an accident.
Counter: Negotiate a hard cap before signing. "Annual increases not to exceed CPI or 3%, whichever is lower" is reasonable. If they push back, ask why they need discretion beyond CPI.
3. Parts Exclusion Vagueness
"Full maintenance includes all parts except major components, aesthetic components, or items subject to vandalism." The contractor defines these categories at billing time. A door operator is "major" when they want it to be. This is how a Full Maintenance (FM) contract becomes an Oil & Grease (O&G) contract in practice.
Counter: Ask for a written exclusions list before signing. Any company unwilling to define "major components" in writing is telling you how they intend to use that term.
4. The Callback Billing Loophole
"Service calls resulting from misuse, vandalism, power failure, or conditions beyond reasonable control are billable at prevailing rates." In a residential building, almost any service call can be characterized as "misuse." A door strike from an oversized delivery cart? Misuse. A nuisance tripping issue from a utility power fluctuation? Power failure.
Counter: Negotiate a defined monthly callback allowance - a specific number of covered service calls per period. Track every service call. If they're using this clause on routine issues, your invoice history will show the pattern.
5. Liquidated Damages for Early Exit
"In the event of early termination, the remaining monthly service fees for the unexpired term become immediately due as liquidated damages." The standard I've seen is 50% of remaining contract value, though 100% is not unheard of. If you're 2 years into a 10-year contract and want to leave because service has been terrible, you could owe 4 years of payments for work they'll never do.
The critical point: make sure you understand your term and cancellation clauses before signing. This is not something you can fix later.
Counter: Negotiate the liquidated damages down before signing. Reasonable language gives you the right to exit with 60-90 days' written notice without paying out the full remaining term. If they need a financial hostage to retain your account, that tells you something.
6. "Obsolete Parts" Designation
"If parts are designated as obsolete by the original equipment manufacturer (OEM), Contractor shall not be required to source or provide said parts." The OEM - Otis, KONE, Schindler, ThyssenKrupp - decides what's obsolete. The same company selling you the maintenance contract also manufactures the parts. When they discontinue a part, your coverage on that component evaporates. The recommended solution is usually a modernization they're happy to quote.
Counter: It's very smart to add language that compels the elevator company to:
- Identify any obsolete parts up front - before signing, not at failure
- Provide quotes on what a full upgrade of those parts would be - so you can budget
- Investigate whether component upgrade to those parts or local repair options exist
The best way to do this is call manufacturers directly or understand the various elements of each major component and ask specific questions about each. For example, if your hydraulic power unit is obsolete, that doesn't mean the entire unit must be replaced. The power unit contains three components: the motor, the pump, and the valve. If just the valve failed, you may be able to replace only the valve and get another 5 years out of the motor and pump if they're in decent shape. If the entire unit is over 20 years old, a full upgrade may be justified. But you should have the option to spend your money how you see fit and explore your options.
A contractor who refuses to pursue aftermarket sourcing or component-level analysis is steering you toward a sale.
7. Assignment Without Consent
"This Agreement may be assigned by the Contractor to any successor entity without prior consent." Elevator companies get bought. When that happens, your contract transfers automatically. You had no say and may not know it happened until the billing name changed.
Counter: Add a mutual consent provision: any assignment requires 60 days' written notice to you, with the right to terminate without penalty within 30 days if you choose not to continue with the new company.
8. "Best Efforts" Response Times
"Contractor shall use commercially reasonable best efforts to respond to service calls within four hours." That's not a service level agreement (SLA). It's a statement of intent with no enforcement mechanism. They used their best efforts. They just happened to arrive seven hours later while your tenant was trapped.
The language is vague intentionally. What matters is whether there are guarantees and damages included. If the elevator company is contractually obligated to response times, they will typically do their best to meet them - though this may carry a contract premium rate, especially for high-class office buildings or department stores.
Counter: Replace "best efforts" with defined commitments that carry consequences. Two approaches work:
- Liquidated damages: $100-$500 per day late to respond, or 1 month of maintenance payments credited after 48 hours with no response.
- Termination trigger: Failure to meet response time on three or more occasions within any 12-month period constitutes grounds for termination without penalty.
Either gives you leverage. "Best efforts" alone gives you none.
9. Inspection Coordination Shift
"Building owner shall be responsible for scheduling regulatory inspections and ensuring access. Contractor shall not be responsible for penalties arising from failure to provide access." This ensures any inspection failure is documented as your logistical problem, even though they have the technical expertise and equipment access to coordinate effectively.
Counter: Negotiate shared responsibility: "Contractor shall provide 30 days' advance notice of inspection requirements and identify any observed conditions likely to result in violations."
Before Your Next Renewal
You don't have to address every clause. Three things move the needle:
- Know your window. Find your cancellation deadline. Put it in your calendar today.
- Pick 2-3 non-negotiables. The escalation cap, parts exclusions, and early termination penalty are usually the most consequential.
- Get at least one competing bid. You don't have to switch. You just need a number. Your current contractor knows when you're shopping.
If you have decided to change providers, follow our step-by-step guide to switching elevator companies to avoid the common mistakes that trap property managers in another unwanted term.
Run any contract through our free Contract Scanner before you sign. It takes 60 seconds to identify hidden renewal traps and unfavorable terms.
Evergreen clauses are just one trap - learn to spot them all with our complete guide to reading elevator service contracts.
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