Obsolescence Clauses in Elevator Contracts
Most “full coverage” elevator contracts have an obsolete parts clause in them. It’s always a good idea to be familiar with what your contract says about this. If you have a very old contract that has continued on for years there may not be a clause, in that situation the service contractor is liable for whatever it takes to repair the system, in most cases if it goes to court the decision will be in your favor.
You may want to consider a softer line if your service contractor has been doing a good job for all those years and offer to split the cost of the upgrade/repair with them after you find out what the entire cost would be. In the long run it pays to be fair and keep a good contractor in business.
When your elevator service contractor comes to you and says that you will have to pay to replace a part that was covered under the contract it can be very beneficial to examine the circumstances. First of all how old is your conveyance system? How many were built? It could be that the original equipment manufacturer has stopped producing the part rendering it obsolete to them when in reality it could be available through aftermarket suppliers. If it’s a circuit board is there a shop anywhere that repairs and exchanges them? Most elevator service companies utilize the services of these small specialty shops scattered throughout the country. If it’s a motor why can’t it be rewound at a local shop? If you’re in a hurry for it you can pay the premium portion of the rewinding cost. With some very old elevators a local machinist may be able to produce a satisfactory substitute. Some major manufacturers refuse to purchase parts from their competitors even if they are available. New elevators sell at a very low margin, elevator parts sell at a very high margin and some majors will go to great lengths to avoid enriching their rivals.
In the past some elevator service companies have been a bit too quick to label parts as obsolete in the rush to get you to upgrade either to increase their repair revenue, sell their parts, and or make the elevator easier to service. As for the last part if an upgrade makes the elevator easier to service or increases reliability, depending on the cost you may be able to make it work for you by negotiating with the service contractor.
Even if you feel that you have a good relationship with your technician it’s always best to check when he or she makes you aware of an obsolete condition. One way to avoid the problem is to ask for a list of obsolete parts and assemblies to be produced from your yearly audit. With this information you can sit down with the contractor and discuss upgrade options and costs and budget to eliminate them as you go. In the case of expensive upgrades it is always helpful to speak with a competitor or a consultant. It could be that your contractor just may not be aware of the latest aftermarket supplier’s products.
In the future I’ll discuss..
Obsolete parts
Downtime
Safety tests
What should be covered
Yearly audits with supervisory personnel
For now I will leave you with quotes from:
“Get your facts first, then you can distort them as you please.”
Mark Twain
or
Mark Twain
or
“A government that robs Peter to pay Paul can always depend on the support of Paul.”
George Bernard Shaw
George Bernard Shaw
Don’t forget to email me if you have questions or comments (elevatorernie@hotmail.com). Your suggestions are always welcome.
Thank you,
