Raise Your Contract Renewal Expectations
Understanding elevator service contract renewal best practices.
Conveyance systems have become much more reliable but gaps in service still occur. In fact, the average building owner or manager experiences about one elevator or escalator malfunction per year. When this happens, getting from Point A to Point B for building residents, visitors and even your team can suddenly come to a frustrating halt. That’s why you have probably partnered with a conveyance maintenance company to help you minimize downtime and maximize the productivity of your building elevators and escalators.
One of the most important elements of this relationship is a good service contract and the renewal process is critical to ensuring that you are always receiving the most for your investment. How can you know what to look and ask for when it’s time to renew? The process can sometimes be confusing but the experts at ATIS, the largest conveyance management company in America, have years of experience and can help you better understand what you need to do to keep moving forward in a positive way.
Read on to learn more about understanding elevator service contract renewal best practices – and for details about a free webinar on this topic.
Raise your contract renewal expectations.
An essential thing to remember during renewal negotiations: even the best contract can be better. The goal is to make your contract work harder for you and your company, not your service supplier. Thankfully there are renewal best practices you can follow to help you through the process and it all begins by starting early, well before your contract is set to expire. Here are some things to consider.
Have your service supplier perform a full inspection nine months prior to the contract end date. Use this as an opportunity to address any obstacles and challenges you have experienced with the supplier and set a positive tone of expectations in advance of the renewal date.
Provide your elevator service company with time to correct issues and manage monthly meetings during this period and request detailed updates. This becomes their proving ground and will eliminate pre-maintenance charges should you choose to switch to a new supplier.
Develop new specifications that include performance based parameters and deduction clauses. This provides added incentives to your supplier to consistently meet and exceed your expectations and allows you to ask for the specific things that are important to you.
Find out what your obligations are if you decide not to renew. For example, how much in advance will you need to inform your supplier if you are going a new way? And are there any financial incentives if you choose to renew early with your supplier? Understanding the consequences – pro and con – will help you to make an informed decision.
Consider initiating a bidding process. Competition is healthy, especially to your bottom line. However, be sure to allow plenty of time as the bidding process will typically take two months or more to complete.
Elevating expectations in your renewal contract.
The renewal process is your opportunity to define everything you want from your service agreement while making sure your service partner clearly understands your expectations and is accountable for delivering results. Remember, if it’s not in the contract, it’s not covered. Here are things you should typically include in your renewal contract.
Specific services covered and not covered
“Out clauses” under various situations
Deductions and liability limitations
Specific obligations of the service provider (besides delivery of the service)
Escalation clauses (with limits)
Legal considerations, such as contract termination, hold harmless, release liability, and breach and cure process
Calls per unit per year on a rolling average (six per year on average)
Door open and close times
Floor-to-floor performance, reversals, and leveling at floors
Define overtime, premium time, and monthly maintenance meetings
Of course, these are just a few of the things you should be thinking about well before it’s time to renew your service contract. At ATIS, we’re always ready to help you manage your maintenance supplier so you get the most from your contract.
Trust us to help you get more from your maintenance supplier.
At ATIS, we specialize in consulting with businesses like yours to help manage your elevator maintenance supplier and contract to make sure you are always getting the most from your investment. Contact us now if you are ready to start the process.