A property manager in Boston signed what he thought was a full maintenance contract. Six months later, the controller failed. The repair quote came in at $11,000. He called the elevator company: "Isn't this covered?" They pointed him to page 7, paragraph 3: "Controllers, PLCs, and related components are excluded from routine maintenance coverage."
He's not alone. Most PMs don't know what they signed until something expensive breaks.
Before you sign your next elevator contract, ask these five questions.
1. What's Actually Covered?
"Full maintenance" sounds comprehensive. It isn't always.
Even contracts labeled "Full Maintenance" routinely exclude controllers, door operators, hydraulic cylinders, and code-required safety upgrades. These are the expensive components. If they're excluded, you're not getting full maintenance regardless of what the contract title says.
The coverage difference matters because of what component failures cost:
| Component | Repair Cost |
|---|---|
| Controller boards | $8,000-$12,000 + labor |
| Door operator upgrade | $20,000-$23,000 |
| Hydraulic power unit | $30,000-$50,000 |
| Traction machine | $60,000-$80,000 |
One controller failure on an examination contract exceeds 2-3 years of the premium difference between exam and full maintenance.
Ask this: "Can you show me the exclusion list in writing? Are controllers and door operators explicitly covered?"
2. What Are the Real Costs Over the Term?
The monthly rate on page one isn't what you'll pay. Escalation clauses compound.
A 3% annual increase seems small. Over five years, it compounds to 16% total. Over 15 years, 56%.
Example: $500/month base rate on a 5-year term
- At 3% escalation: $580/month by year 5 ($480 extra over term)
- At 5% escalation: $640/month by year 5 ($1,080 extra over term)
Negotiating a 3% cap instead of 5% saves about $600 per elevator over five years.
Beyond escalation, check for these hidden costs:
Testing fees: CAT1 testing runs $500-$1,300 annually. CAT5 testing costs $2,000-$5,000 every five years. Both are code-required. Both are often excluded from maintenance contracts.
After-hours rates: Standard contracts charge 1.5x after 5 PM, 2x on weekends, 2.5x on holidays. An evening entrapment that takes two hours to resolve can cost $500+ above the callback base rate.
Callback limits: Some contracts include only 12 callbacks per year, billing extra beyond that. A building with aging equipment can easily exceed 12 callbacks, turning a fixed cost into a variable one.
Ask this: "What's the annual escalation rate and is it capped? Are callbacks unlimited? Is CAT5 testing included?"
3. How Do I Get Out If Service Is Bad?
Standard contracts favor the vendor on exit terms: 5-year terms, 90-day notice required during a specific window, and early termination fees of 50% of remaining value.
The evergreen trap catches most PMs. A contract ending December 31, 2026 that requires "90-day notice" doesn't mean you can cancel with 90 days notice anytime. It means you must send written notice during a specific 30-day window (roughly October 3 through November 2). Miss the window by one day, and you're locked in for another five years.
With-cause vs. without-cause matters. With-cause termination means you can only exit if the vendor fails specific obligations, which is hard to prove. Without-cause means you can exit for any reason with proper notice.
The term to negotiate: cancel anytime with 30-day written notice. Once this clause is in your contract, you have permanent leverage. The vendor knows you can leave, which changes how they service your equipment.
One escape route if you're already locked in: modernization. When equipment is modernized (controller replaced), the existing maintenance contract is voided, not terminated early. This is legally distinct from early termination. You owe nothing for the remaining term.
Ask this: "What's the cancellation notice period? Can I cancel without cause? What exactly triggers early termination fees?"
4. What's Their Response Time Guarantee?
"We respond quickly" is not a commitment. Get response times in writing with specific numbers.
Industry benchmarks for realistic expectations:
- Entrapment response: 30 minutes regular time, 60 minutes after hours
- Routine callback response: 3-4 hours is standard
Guaranteed SLAs come with premium pricing. For high-traffic buildings where elevator downtime costs real money, the premium is justified. For a 6-unit residential building, it may not be.
The trap to avoid: contracts that say "vendor shall use reasonable efforts to respond." This language is unenforceable. Push for specific times or accept that response times are not guaranteed.
Ask this: "What's your response time for entrapments? Is that in the contract? What happens if you miss the SLA?"
5. Can I See Their Track Record?
Any reputable vendor should provide references. Ask for 3-5 buildings of similar size and equipment type, with PM contacts you can call directly. Buildings they've serviced for 3+ years show they can retain accounts.
Check state records. Every state maintains elevator inspection records and violation history. Look up the vendor's license status and any outstanding violations on equipment they service.
Request callback frequency data from any vendor you're considering. High callback rates (more than 8-10 per year per unit) indicate either equipment problems or vendor neglect. Either way, it's information you need.
Watch for ghost maintenance indicators: empty machine room logs, no service tickets after scheduled visits, mechanic visits under 30 minutes for monthly PM, or high callback rates relative to contract pricing.
Ask this: "Can you provide 3 references with PM contact info? Can I see your service ticket history from a similar building?"
The Red Flag Checklist
Before signing, verify your contract doesn't have these:
| Red Flag | Risk Level |
|---|---|
| Evergreen clause with under 120-day notice | HIGH |
| Controller excluded from FM | HIGH |
| Door operator excluded from FM | HIGH |
| With-cause termination only | HIGH |
| Callback limit under 12/year | HIGH |
| Obsolescence clause with no age definition | HIGH |
| Escalation rate over 4% uncapped | MEDIUM |
| No SLA penalty clause | MEDIUM |
| CAT5 testing excluded | MEDIUM |
| After-hours multiplier over 2x | MEDIUM |
Three or more red flags means significant exposure. Six or more means don't sign without major revisions.
Check Your Contract Before Signing
Not sure if your contract has these issues? Upload it to our Contract Scanner. It flags red-flag clauses, hidden fees, and terms that put you at a disadvantage.
Takes 60 seconds. Know what you're signing.
For negotiation strategies once you've identified the problems, see our guide on how to negotiate your elevator contract.