How to stop your Lift Maintenance Agreement from rolling over (with a sample letter)

If you do nothing, your Lift Maintenance Agreement will probably renew itself. Most contracts include a roll-over clause: unless you give written notice by a set date, the contract continues for another term, often as long as the original. Stopping the renewal takes one letter, given in accordance with the contract requirements.

Step 1: Find the roll-over clause

Look for a clause headed "term", "renewal", "termination" or "roll-over". It will say:

• How long the notice period is, typically 30, 60 or 90 days before expiry
• How notice must be given, for example in writing, by email or by registered post
• How long the contract renews for if you don't give notice

Note the clause number, because you will quote it in your letter.

Step 2: Work out your deadline

Count back from the expiry date by the notice period, as in this worked example.

Worked example

The contract expires on 1 July 2027 and the notice period is 90 days, so notice must be received by 2 April 2027. Send it today and record the acknowledgement.

Put that date in your diary and your contract register. Don't wait for it before sending the notice.

Step 3: Give notice now

You can give notice at any time, even the day after the contract is signed. Early notice only stops the automatic renewal. The contract still runs to its expiry date, and you can decide nearer the time whether to renegotiate, re-tender or reappoint.

Once notice is given and acknowledged, record the date in your register and move on.

Step 4: Send the letter

Send it to the contact named in the contract, in the form the contract requires. Adapt the sample below.

Copy the letter

Copy the letter below onto your letterhead and replace the details in square brackets.

Subject: Notice to prevent automatic renewal, Lift Maintenance Agreement, [building address]

Dear [contractor contact],

On behalf of [owner or owners corporation], and in accordance with clause [number] of our Lift Maintenance Agreement for [building address], which expires on [date], we give written notice that we do not accept the automatic renewal of the agreement for a further term.

This notice is not a reflection on your company's performance. It gives [owner] the opportunity to review the Agreement before it expires, and your company will be invited to take part in any Tender.

If the review or tender is not complete by the expiry date, we ask that you continue to maintain the equipment under the current agreement's terms, on a month-to-month basis, until a new agreement is in place.

Please acknowledge receipt of this notice.

Yours sincerely,

[name, title, organisation]

Step 5: Get it acknowledged

Ask for written acknowledgement, and follow up if it doesn't arrive within a week. Keep the letter and the acknowledgement with the contract.

What if it has already rolled over?

If the notice date has passed and the contract has renewed, read the termination clause. Many contracts allow early termination but charge a fee based on the remaining term, often from around 40% of the remaining contract value up to its full value. Some contractors will negotiate, particularly if performance has been poor. An independent review of the contract and the equipment's condition strengthens your position.

Next time, give notice the week the new contract is signed.

Questions people ask

Does giving notice cancel my lift maintenance?

No. The contract continues until it expires. Notice only stops the automatic renewal.

Will giving notice upset my contractor?

Not if you explain it's routine. Good contractors expect it, and your letter can say they will be invited to tender.

Can I give notice by email?

Only if your contract allows it. Check the notice clause for the required method.

Using the notice period

Giving notice buys you time to review what the contract covers and how the contractor has performed. Our guide Before you renew your lift maintenance contract explains what to check. If you would like a hand working out your notice dates, contact us.

LML Lift Consultants reviews lift contracts and runs re-tenders for owners, owners corporations and managing agents. Talk to us or call 1300 001 565.