Who services the elevators in your building? This is done by a specific elevator service company, which the coop or condo has a service contract with. The service contract typically includes ongoing maintenance and repairs, as well as the annual inspections. Additionally, when the elevator breaks down, your super calls that company to send out one of their mechanics to repair the problem.
Because buildings are complex and have an extensive list of vendors, coop or condo boards and their property managers often continue to keep the incumbent vendors. Boards often do not even know that there is a service contract. One surprised board member recently replied to our inquiry for the service contract with “Attached is the elevator contract from 1999(!). I didn’t even know we had an elevator service contract...”
The price of the elevator service contract is like everything else in the property management business, very different from building to building. One building can pay as much as 100% more per elevator than the next building.
There are many reasons for this. Some, the board cannot do anything about, such as the number of floors, or type, age, and condition of elevator. However, there is one major reason for the huge price discrepancy, which the board can take advantage of, should they wish to reduce the cost of their service contract.
Just as with any other general contracting work, whether construction, paint, electrical, plumbing, etc., there are union companies and non-union companies. Union companies are notoriously known for charging much more. Residential buildings are not required to use union companies, and in our opinion shouldn’t.
Our research shows that service contracts with union companies are typically 60-100% more expensive than their non-union counterparts.
It could be argued that union companies are larger and therefore have larger pools of mechanics. It is our opinion that there are many very well-qualified non-union elevator companies that provide the same service at a significantly lower price point.
Don’t feel trapped by your elevator contract; find out if we can help you reduce the cost of your service contract by calling us today!