Elevator & Escalator Installation Contracts: Complete Contractor Guide 2025
Win elevator and escalator installation contracts. Learn about vertical transportation systems, code requirements, modernization projects, and how to bid on new installation, maintenance, and repair contracts.
Elevator & Escalator Market
Vertical Transportation Market Quick Facts
US Market:
$22B+
Annual industry
New Installation:
$8B
Annual segment
Service/Maint:
$10B
Annual contracts
Modernization:
$4B
Annual upgrades
The elevator and escalator industry is dominated by major manufacturers but offers significant opportunities for independent contractors, particularly in maintenance, modernization, and repair work. Understanding the regulatory environment and building owner needs is essential for success.
Major OEMs
Otis, KONE, Schindler, TK Elevator dominate new installation. Often proprietary maintenance requirements.
Independent Service
Growing segment of independent maintenance contractors. Open protocol equipment increasing opportunities.
Modernization
Aging building stock driving modernization demand. Both OEM and independent contractors compete.
Equipment Types
Geared Traction
- • Low to mid-rise applications
- • Speeds up to 350 fpm
- • Machine room required
- • Cost-effective option
- • Modernization common
Gearless Traction
- • Mid to high-rise
- • Speeds 500+ fpm
- • Higher capacity
- • More energy efficient
- • Premium cost
Characteristics
- • Compact machine in hoistway
- • No separate machine room
- • Low to mid-rise (up to 30 floors)
- • Energy efficient
- • Growing market share
Considerations
- • Hoistway space requirements
- • Service access considerations
- • Code requirements vary
- • OEM-specific designs
- • Training requirements
Applications
- • Low-rise (2-6 floors typical)
- • Freight elevators
- • Parking garages
- • Residential (LULA)
- • Cost-sensitive projects
Considerations
- • Machine room at base
- • Oil containment required
- • Temperature sensitivity
- • Environmental concerns
- • Declining market share
Escalator Types
- • Commercial (retail, office)
- • Heavy-duty (transit, airports)
- • Outdoor/weatherized
- • Inclined moving walks
- • Horizontal moving walks
Key Systems
- • Drive system (chain/direct)
- • Step chain and steps
- • Handrail system
- • Safety devices
- • Controller
Project Types
New Installation
New construction projects. Typically spec'd by elevator consultant. OEM-dominated but subcontractor opportunities exist.
Modernization
Upgrading existing equipment. Controller, door operator, fixtures, and machine upgrades. Growing segment.
Maintenance Contracts
Ongoing service agreements. Full maintenance, parts-inclusive, or parts-exclusive options. Recurring revenue stream.
Repair & Service
Emergency repairs, callbacks, and non-contract service. Higher margins but unpredictable volume.
Modernization Scope Levels
Controller Only
- • New controller/drive
- • Retain machine/motor
- • Update safety devices
- • $50-100K typical
Partial Mod
- • Controller + door operators
- • Cab interior refresh
- • Fixture upgrades
- • $100-200K typical
Full Mod
- • Complete replacement
- • New machine/motor
- • All components
- • $200-400K+ typical
Codes & Standards
ASME A17.1/CSA B44 Safety Code
Primary safety code for elevators and escalators. Updated every 3 years. Adopted by all US jurisdictions.
ASME A17.3 Existing Elevators
Requirements for existing equipment. Retroactive compliance requirements. Key for modernization projects.
ADA/ICC A117.1 Accessibility
Accessibility requirements for elevators. Car dimensions, controls, signals, and communication requirements.
International Building Code
Building code requirements for elevator quantities, accessibility, fire service features, and hoistway construction.
Contractor License
- • Most states require license
- • Insurance requirements
- • Experience requirements
- • Bonding requirements
- • Continuing education
Mechanic Certification
- • QEI (Qualified Elevator Inspector)
- • State certifications
- • Union apprenticeship (IUEC)
- • Manufacturer training
- • OSHA certifications
Finding Elevator Projects
Building Owners/Managers
Direct relationships with property managers and building owners. Service contract opportunities.
Elevator Consultants
Consultants specify equipment and recommend contractors. Build relationships for bid invitations.
General Contractors
Elevator is typically subcontracted on new construction. Build relationships with commercial GCs.
Government Procurement
Federal (GSA Schedule 56), state, and local government contracts for maintenance and modernization.
Winning Elevator Bids
Licensed and Certified
State contractor license, certified mechanics, and QEI inspector capability.
Equipment Expertise
Manufacturer certifications and training. Ability to service multiple brands preferred by owners.
Response Capability
24/7 emergency response. Geographic coverage. Adequate staffing for service commitments.
Insurance and Bonding
Adequate liability coverage. Bonding capacity for larger projects. Umbrella coverage for property owners.
- Not verifying current code requirements for jurisdiction
- Underestimating hoistway modifications for modernization
- Missing proprietary equipment issues (codes, parts availability)
- Not accounting for building occupancy during installation
- Inadequate site assessment before bidding
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