Budgeting for Your Elevator: How to Consider Costs Upfront, from Installation to Modernization

Building owners should calculate the total cost of their elevator equipment prior to signing on to their long-term investment and large-scale installation. Elevators are one of the most expensive additions to any type of building; they’re often vital to the building’s operations and ADA compliance, as well. Yet while elevators facilitate access and utility, the differences in their upfront and operating costs can vary significantly. Follow these guidelines below to identify how to purchase an elevator. Building owners who make informed choices using cost analysis are more likely to not only save money but also choose the right equipment for their needs and goals.

What type of elevator should I purchase?

Many building owners don’t capitalize on just how much choice they have in purchasing their elevator equipment. There are numerous types of elevators for buildings, and building owners should not only consult their elevator service company for recommendations but also assess their own needs to make a decision. A building owner should determine the elevator’s purpose, anticipated frequency of use, load capacity requirements, ADA mobility needs, and determine the importance of aesthetics and ride quality. Elevator types vary based on these answers and more.

A building’s type, from a residential setting to low-rise or high-rise, influences elevator drives and their function. Building owners should feel comfortable asking other property managers about their equipment’s performance and overall cost; alternatively, building owners can also request referrals from their elevator company to learn from a variety of customers who use different elevator equipment about the performance and expense.

Additional considerations during elevator equipment purchase include answering honestly the number of elevators required for the building. Owners should evaluate the needs of the building’s occupants and riders, considering their demographics to further support a building that can not only serve riders when an elevator is working, but can also ensure the building’s operations continue if one elevator goes down. Installing the right number of elevators the first time is the most cost-effective way to reduce redundancies in expensive construction and installation costs later on.

Evaluate the construction costs

Elevator construction and installation costs should include not only the cost of equipment and installation but also those construction costs associated with preparing the building for its installation. Contractors and architects should work alongside the elevator installation company to assess the physical and systemic specifications required to install and operate the elevator(s), from determining hoistway dimensions and machine room requirements to interfacing with the electrical system and fire and safety components.

Building owners must acknowledge both the upfront and long-term costs of their equipment prior to construction and installation in order to protect their savings and their investment. One major influence in price fluctuation among elevator equipment and maintenance packages accompanying them is whether the installed equipment is propriety or non-proprietary. In Construction Executive’s “The Unintended Consequences of Proprietary Equipment on Construction” the author reveals potential expenses of proprietary equipment on long-term costs due to limited choice of maintenance providers, for example.

Plan for the lifetime expenses of the elevator equipment

Every elevator system has an operating lifecycle. All building owners should budget for their equipment’s ongoing maintenance and inspection as well as its eventual obsolescence. Every installed elevator should have a maintenance provider confirmed prior to the equipment’s installation. Maintenance visits can be conducted using various schedules which are best determined by the elevator type, usage, and the owner’s preference. It’s important to remember that effective elevator maintenance routines can reduce costly unforeseen repairs. Additionally, inspections will be required for your elevator equipment based on the rules set forth by the Authority Having Jurisdiction under which the elevator operates. Building owners can estimate the costs of inspection by obtaining quotes separately for the testing, the accompanying elevator service company, and the third-party inspection agency (all components are required present during inspection).

An elevator’s lifetime endurance can vary from 10-years to up to 25 years based on the equipment type and its maintenance. Building owners should research beforehand the equipment’s forecasted lifespan so that the cost of modernization and/or replacement is accurately budgeted.

The following list contributes to a life cycle cost analysis (LCCA) of an elevator, which is one of the best models for assessing the true cost of elevator equipment prior to purchase:

• Construction & Installation Costs
• Cost of elevator equipment.
• Construction costs for preparing the building for the equipment (e.g. the hoistway and machine room, electrical and fire & safety systems).
• Cost of “downtime” to the building’s operations and/or other construction projects while the installation is underway.
• Operating Costs
• Cost of utilities to operate the elevator(s) and their accompanying machine room or interconnected systems.
• Cost of ongoing preventive maintenance with a company that also provides 24/7 safety and service dispatch.
• Cost of anticipated routine repairs and replacement parts.
• Cost of mandated inspections, which vary in frequency under the Authority Having Jurisdiction. This should include paying for testing from an elevator service company as well as a 3^rd party Qualified Elevator Inspector.
• Modernization & Obsolescence
• Budget for modernization of equipment, factoring in the lifetime of the equipment, desired upgrades to the interior over time, components vs. full-system replacements.