Understanding and Managing Excessive Elevator Invoices: Insights from BH Elevator Consultants Inc.

Have you ever received an elevator maintenance bill that left you shocked, wondering if you should pay it? These invoices can range from $500 to $2,000 or more. At BH Elevator Consultants Inc., we understand your concerns and are here to help you navigate these costs effectively. 

The Reality of Full Maintenance Contracts 

You might believe that your full maintenance contract covers all potential issues, but this isn't always the case. In the past, extra invoices were rare, typically reserved for overtime service calls or water damage repairs. However, as maintenance contract prices have decreased, elevator companies have had to find alternative ways to maintain profitability. This has led to a reduction in the scope of these contracts and a more aggressive billing approach. Many companies now have specific line items in their budgets to track and bill for these additional services. 

Budgeting for Elevator Maintenance 

To manage your elevator maintenance budget effectively, it's essential to anticipate and allocate funds for services that fall outside the scope of your contract. These services often include: 

1. Fire Alarm and Smoke Testing: This is a crucial safety measure that is usually not covered under standard maintenance contracts. 

1. Overtime Visits: Unless specifically included in your contract, any service calls outside of regular business hours will incur additional charges. 

1. Generator Tests: Although typically conducted during annual inspections, elevator companies often bill separately for these tests. 

1. Providing Access to the Hoistway: If another contractor needs access, this can result in additional fees. 

1. Retrieving Keys from the Elevator Pit: This common occurrence can also lead to unexpected costs. 

1. MCP (Maintenance Control Program): This can include any of the annual testing or the required Cat 5 testing for traction elevators. 

While these charges may seem minor, they can accumulate significantly over a year. Considering that most elevator companies charge hourly rates between $200 and $400 during normal business hours, the costs can quickly escalate. 

Example of Annual Maintenance Costs 

Let's break down the potential annual costs for a building with a single hydraulic elevator. Assume your base maintenance contract costs $350 per month, totaling $4,200 annually. Now, add the following typical scenarios: 

• Fire Alarm Testing: To avoid tenant disturbance, you schedule this after hours, resulting in a two-hour overtime visit at an overtime rate of 1.5. This could cost approximately $700 per visit. 

• Key Retrieval: If a tenant drops their keys in the pit, it may cost at least $200 to retrieve them. 

These additional charges can increase your annual spending from $4,200 to $4,900, almost an increase of 20%. These estimates are conservative and actual costs could be higher. 

Strategies to Manage Extra Invoices 

One often-overlooked strategy to manage these costs is understanding the billing practices of elevator companies. If you receive a $500 invoice, you might wonder what happens if you don’t pay it immediately. Typically, large corporations, including elevator companies, will start writing off bad debt after 90 to 180 days. This means that after a certain period, the company has already accounted for this debt as a loss. Consequently, they might be more willing to negotiate a discount, potentially up to 50% or more. 

However, this approach has its risks. It's important to maintain good business practices and honor agreements whenever possible. If you feel a charge is unjustified, communicate this in writing and refuse to pay until a resolution is reached. This ensures transparency and maintains the integrity of your business relationships. If you find you are in a position where you feel you were unjustly charged, it would be in your best interest to contact BH Elevator Consultants Inc. and let them provide you with the desired results.  

Negotiating with Your Account Manager 

Working directly with your account manager when you receive an excessive invoice is often the most effective strategy. These managers are typically incentivized to resolve issues quickly and may offer negotiations to keep you satisfied. Here's how you can approach this: 

1. Document Your Concerns: Clearly outline why you believe the invoice is excessive. Provide any supporting documentation or evidence. 

1. Communicate Effectively: Reach out to your account manager with your documented concerns. Be polite but firm in your request for a review of the charges. 

1. Negotiate Terms: Discuss possible adjustments or discounts on the invoice. Managers often have the discretion to offer concessions to resolve disputes amicably. 

Improving Future Contracts 

To prevent surprise invoices in the future, it's crucial to address these issues during your next contract renewal. Here are steps you can take: 

1. Clarify Inclusions: Ensure that your contract explicitly covers all necessary services, such as fire alarm testing, overtime visits, and generator tests. 

1. Set Fixed Rates: Negotiate fixed rates for services outside the scope of the standard contract. Ensure these rates are documented and remain consistent throughout the contract period. 

1. Review Billing Practices: Discuss the company’s billing practices and ensure there are no hidden fees. Request transparency in all future invoices. 

Conclusion 

At BH Elevator Consultants Inc., we believe in empowering our clients with the knowledge and strategies to manage their elevator maintenance costs effectively. By understanding the intricacies of your maintenance contract, budgeting for additional services, negotiating invoices, and improving future contracts, you can take control of your elevator expenses and avoid unexpected financial burdens. Remember, proactive communication and negotiation are key to maintaining a balanced and manageable maintenance budget. 

Allow BH Elevator Consultants Inc to manage your elevator endeavors and start to accumulate the savings.