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#37529 - 05/31/24 10:26 PM "Stealing" Maintenance Contracts  
Joined: May 2024
Posts: 1
Mozzie Offline
Mozzie  Offline

Joined: May 2024
Posts: 1
I'm in Sydney, Australia and help manage a complex with 12 elevators. A company called Strata Essential Services (SES) has approached the strata manager to put forward a proposal to the owners for a lift maintenance renegotiation (current agreement is half way through the 5 year contract). They make out as if they have negotiated with the current maintenance provider to improve the agreement and fees in favour of the owners. It all looked a little suss so I called the current provider and they knew nothing of it. On closer examination of the proposal I'm sure their aim is to get the owners to sign their agreement, they then cancel the current agreement (with owners paying penalties not disclosed by SES), and they would then engage another mob to do the maintenance. The owners think they'll be saving money but they would end up paying SES to impose penalties and higher costs to them. Has anyone else come across these people or know anything about them? It's scary that this almost got through except for me asking for more information and when it wasn't provided I convinced 1 member to vote no so it didn't happen. But the strata manager has put it back on the table after sending me some more suss looking info to look through. If others have knowledge of this sort of thing happeneing I can add it to my argument to the other owners to say no to it. Thanks everyone.

#37531 - 05/31/24 11:10 PM Re: "Stealing" Maintenance Contracts [Re: Mozzie]  
Joined: Aug 2017
Posts: 468
EElevator Offline
EElevator  Offline

Joined: Aug 2017
Posts: 468
Sounds like you about have it figured out. Unfortunately it's my experience that wise people are not often who runs things and can be easily fooled. It sounds like a win win for the sketchy company trying to propose this to the owners, no loss if owners turn them down and lots of money to make if owners accept. Like you said, it's not the new company that goes to court or has to buy out of the current contract.

No one does things for free, or out of the goodness of their heart (business folks that sign papers). This new company will make money somehow somewhere, I'd be looking for where. My company was letting pur sales lady go around and sell darn near full maintenance contracts for dirt cheap. The company was loosing money, but she was making big bucks on commission, with an absentee boss. Then she'd turn around and be dishonest and try to charge customers for proposer things that were covered by the contract. We got a new boss that figured her out and she left.

Anyhow what im getting at is old sayings are true. Follow the money. And if it sounds to good to be true, it probably is. Definitely figure out this new company's plan to make money from this.

For example, my companies current business model is lie cheat and steal customers money. Charge them for the maintenance according to the contract and NEVER show up. The only customers that see my face are breakdowns and customers that want a refund for missed maintenance visits. If this new company is truly cheaper, are they going to show up on time and do that quality work they should? What's your recourse if they don't show up? I wouldn't sign anything that allows a number of visits per year. It's gotta be on time. 4 visits in December is not the same as four quarterly maintenance visits.

In case you couldn't tell, I'm a mechanic with a bit of experience in contracts etc, not office staff.

#37532 - 06/01/24 11:14 AM Re: "Stealing" Maintenance Contracts [Re: Mozzie]  
Joined: Jul 2020
Posts: 75
Bowtiedrooster16 Offline
Bowtiedrooster16  Offline

Joined: Jul 2020
Posts: 75
Hey EElevator sounds like you work for Kone in CT USA lol..

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