Planning Lift capital costs over ten years

Lifts are among the most expensive assets in a building to replace. Yet in many buildings the first anyone hears of a modernisation is when the contractor says a part is obsolete, or the Lift fails for good.

A capital plan sets out, years ahead, when each Lift and Escalator will need work, what that work will involve and roughly what it will cost. Replacements then become budgeted projects, planned around the building.

This article explains what a Lift capital plan contains and how to build one.

Why a capital plan matters

• Owners and committees can see big costs coming and fund them gradually.
• Work can be scheduled for quiet periods and alongside other building works.
• You negotiate from a stronger position, because planned projects can be tendered properly and emergency repairs cannot.
• It helps with compliance, since owners corporations and bodies corporate in several states must plan and budget for major works. The requirements differ between states, so check what applies to your building. Lifts are usually one of the largest items in these plans.

10 years

the standard horizon for a lift capital plan, reviewed every year

What goes into a Lift capital plan

1. An inventory

A list of every Lift and Escalator, with its brand, model, year of installation, controller type, number of floors served, and any previous modernisation.

2. The current condition

This should come from an independent audit, not the contractor's opinion. It records the condition of each major component: machine, controller, drive, doors, ropes, car interior, fixtures and safety equipment.

3. Remaining life, component by component

Components wear out at different rates, so a lift doesn't usually need everything replaced at once. Controllers and drives often need replacing after 15 to 20 years, as parts become hard to source, while machines, rails and structural items can last much longer.

4. Obsolescence risk

The plan should show which components are, or will soon be, unsupported by their manufacturer. Obsolescence can bring forward a replacement by years, and it varies between manufacturers and contractors. See Before you renew your lift maintenance contract.

5. Compliance and accessibility upgrades

This covers work needed to meet current standards, safety requirements or accessibility expectations, even where the equipment still works.

6. Costs and timing

Each item gets a likely year, a cost range and the options. A range is more useful than a single figure, because building works that can't be seen until the job starts can change the price.

Keeping the plan accurate

A capital plan is only useful if it stays current.

Update the plan when

• The annual audit is completed each year
• The contractor declares a part obsolete
• There is a major breakdown or incident
• The building's use changes, such as a new tenant or a change in occupancy

Planning across a portfolio

Across several buildings, the plan becomes a portfolio view: which sites need work first, how costs spread across years, and where projects can be grouped to get better prices. LML brings the audit results, equipment data and forecasts for every building together to do this.

Where the numbers come from

The plan's years and dollar figures depend on the assessment behind them. LML's lifecycle and feasibility assessment gives each lift a remaining-life estimate, a high-level scope of works, a budget price and an indicative programme. Those four outputs feed straight into the plan, and they are refreshed after each annual audit.

Questions people ask

How far ahead should a lift capital plan look?

Ten years is probably standard, reviewed every year. Some owners plan further ahead for major modernisations.

Who should prepare the capital plan for our lifts?

Someone independent of the maintenance contractor, who can assess the equipment's condition and the real options without selling the replacement.

How much should we budget for lift modernisation?

It depends heavily on the building and the equipment. A condition assessment and capital plan give a realistic range for your lifts.

Talk to us about a capital plan

LML Lift Consultants prepares capital plans for single buildings and whole portfolios, based on independent audits and experience from more than 230 modernisation projects. We sell no equipment and take no commissions.

Talk to us about a capital plan or call 1300 001 565.