Avoid Risky Elevator Maintenance Contracts: Why Colorado Building Owners Need Argon’s VTPMA

July 31, 2025

The Problem: “Boiler-Plate” Elevator Service Agreements

Elevator companies present a take-it-or-leave-it maintenance contract which exposes you to a tremendous amount of risk and liability—models identical to what you currently have executed. At first glance the pricing looks attractive, but read the fine print and a different picture emerges:

Hidden Pitfall	How It Hurts Owners
Automatic roll-overs	Miss a narrow 90-day notice window and you’re locked in for another three years—blocking competitive bids.
Minimal regulatory language	Generic “follow local code” wording leaves YOU liable for Colorado’s strict conveyance rules, fines, and shutdowns.
Vague scope & long exclusions	“Extra” billing for statutory tests, code upgrades, standby power checks, fire service, proprietary parts—you pay again for basics you thought were included.
Low insurance limits & no bond	Typical $1 M coverage barely covers a single injury claim and provides no performance surety.
No Maintenance Control Program (MCP) guarantee	Missing or outdated MCP logs can trigger an elevator shutdown in Colorado—even when you paid for “full service.”

With the Division of Oil & Public Safety (OPS) poised to tighten 7 CCR 1101-8 on January 1, 2026—including electronic MCP uploads and faster enforcement timelines ops.colorado.gov—owners that stick with boiler-plate contracts face even higher regulatory risk.

The Solution: Argon’s Performance-Based VTPMA

Argon Elevator Consulting created the Vertical Transportation Preventive Maintenance Agreement (VTPMA) specifically to solve those owner-side pain points.

1. Built-In Colorado Compliance

Named incorporation of Article 5.5, Title 9 C.R.S. & 7 CCR 1101-8—auto-updates when the code changes.
Contractor must prepare, update, and store the MCP on-site and in OPS’s forthcoming electronic portal.
24-hour statutory accident reporting handled by the contractor, with fines and re-inspection costs on them.

2. Transparent Scope & Cost Control

Code-minimum task schedule in the contract—no more “we didn’t quote that” surprises.
Pre-set rate card for any true out-of-scope work.
Consumer-Price-Index cap on annual fee adjustments.
Uptime guarantee with liquidated-damage credits if availability drops below target.

3. Owner-Friendly Term & Exit

Five-year initial term, then annual renewals (no multi-year auto-lock).
60-day convenience termination—only pay for services rendered.
Immediate exit if contractor’s license or insurance lapses.

4. Superior Risk Transfer

CGL $5 M + performance bond per C.R.S. § 9-5.5-115.
Broad indemnity covering injuries, third-party claims, regulatory penalties, and MCP violations.
Contractor absorbs costs to restore suspended Certificates of Operation after an incident.

What’s at Stake if You Don’t Switch

Scenario	Amity-style Contract	Argon VTPMA
Inspector finds MCP 30 days out of date	Ops issues deficiency > 45 days later elevator may be red-tagged. Owner pays fines + lost tenant revenue.	Contractor has 10-day cure; pays fines, updates MCP, indemnifies owner.
Personal-injury incident	Owner files report. Contractor’s $1 M limit may not cover claim.	Contractor files report, carries $5 M coverage + indemnifies owner.
Mid-term sale of building	Buyer insists on new service bid; owner must buy out 2½ years remaining fees.	Seller terminates with 60-day notice—no penalty.

Take Action—Secure Your Elevators and Your Balance Sheet

Don’t wait until OPS’s 2026 rules expose the weaknesses in a standard elevator company contract. Upgrade to Argon’s VTPMA and lock in compliance, transparency, and true cost control today.