Behringer Harvard

Location: 
Nationwide
Role: 
Maintenance Evaluation
Elevators: 
400

CHALLENGE

Behringer Harvard was struggling to manage elevator maintenance for a 70-property real estate investment trust spanning 13 cities: All 70 properties had separate maintenance contracts, with differing service specifications and pricing defined by their respective maintenance providers. These contracts were generally written to each provider’s advantage, and tracking and managing them was a hassle, creating internal expense for the company while allowing service providers too much opportunity to “nickel and dime” Behringer Harvard for non-contracted repairs.

Behringer Harvard needed a firm with deep elevator expertise to evaluate each building’s equipment, write owner-focused maintenance specifications for each of the properties, renegotiate the properties’ maintenance contracts, standardize pricing, and reduce the overall cost of maintaining the REIT buildings’ elevator equipment.

WHAT WAS DONE

Behringer Harvard retained BOCA Group to perform a comprehensive assessment of the elevator maintenance needs for all 70 REIT properties, define an optimal service scope for the REIT, and identify contractors to meet those specifications.

BOCA Group deployed its nationwide resources to conduct simultaneous on-site evaluations of more than 400 elevators at 70 properties in 13 cities, identifying any necessary pre-maintenance repairs and establishing a baseline level of functionality. Using this survey information, BOCA then wrote consistent, owner-focused maintenance specifications, including on-site work hours and billing terms, for all the REIT’s properties. Once the scope of work was defined, BOCA Group conducted a RFP to collect bids from five national elevator maintenance service companies. BOCA Group evaluated the bids and recommended that consolidated maintenance contracts be awarded to two national service providers, creating volume pricing discounts as well as efficiencies in contract management. Once contracts were awarded, BOCA Group assisted with the transition process to ensure that work was done to specifications and building operations were unaffected by the change.

OUTCOME

Behringer Harvard expects to save at least $400,000 each year with the REIT’s new maintenance contracts. By creating new, owner-defined contract terms and specifying on-site work hours, Behringer Harvard has been able to improve the quality of service and virtually eliminate costly non-contracted repairs. Billing is now simple and predictable, reducing contract-management time and associated costs for the client.

BOCA Group continues to be a full-service elevator consulting partner for Behringer Harvard, conducting maintenance evaluations and third-party inspections, along with modernization work and due diligence equipment evaluations to protect the client in its real estate transactions.

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