Elevator modernization vs. full replacement: making the right decision

When a building's elevators are 15 to 25 years old, every owner meets the same question: upgrade what is there, or replace it all? Both cost a lot of money, and the right answer depends on your building and your circumstances.

This guide sets out what to weigh, for building owners and property managers.

What the two options mean

Modernization means upgrading parts of the existing elevator while keeping its basic structure: the guide rails, the car frame, the counterweight and the shaft. Typical upgrades are:

• A new controller and drive
• New door operators
• A refurbished car interior
• Upgraded safety systems
• Destination dispatch added

Full replacement means removing the whole system and installing new equipment from the ground up: new machines, controllers, cars, doors, guide rails and everything that goes with them.

When modernization makes sense

Modernization is usually the right choice in these situations.

The structure is sound. If the guide rails, car frames, counterweights and shaft are in good condition, there is no engineering reason to replace them. With proper maintenance these parts can last 40 to 50 years or more.

The real problems are control and performance. Old relay-based controllers and early computer controllers are the most common cause of poor performance in ageing elevators. A new controller and drive can greatly improve waiting times, ride comfort and energy use, often for 40 to 60 per cent of the cost of full replacement.

The budget is tight. Modernization lets you spend first on the parts that improve performance most, and leave less urgent upgrades for a later budget.

Disruption has to stay low. Modernizing usually takes each elevator out of service for 2 to 4 weeks, against 6 to 10 weeks for full replacement. That is easier to manage in an occupied building.

The building itself has limited life left. If the building is due for redevelopment, full replacement may never pay for itself.

When full replacement is necessary

Replacement becomes the right choice in these situations.

The shaft and structural parts have deteriorated. Corroded guide rails, worn car frames or structural problems in the shaft mean an upgrade would be built on a weak base.

The gap to current safety codes is wide. If bringing the old system up to today's codes needs changes so large that they cost nearly as much as replacement, new equipment is the practical choice.

The existing arrangement no longer fits. If you need a different speed, capacity, travel height or number of entrances, that usually means replacement, because those are basic features of the system.

The machine room equipment is worn out. Worn gearboxes, obsolete machines or machines that fall short of today's efficiency standards may force replacement, especially if you are moving from geared machines to gearless, machine-room-less technology.

The long-term cost favours replacement. Add up the cost of modernizing, of continuing to maintain the older parts and of likely future failures. Compare that with the cost of a new system over its life. Sometimes replacement wins.

How the costs compare

Actual costs vary by region, building type and scope. As a general guide:

These are general ranges, and your building may differ. An independent assessment gives you accurate figures.

Working in phases

In a building with several elevators, working in phases keeps a minimum service running throughout, whether you modernize or replace. Three questions matter:

• How many elevators can be out of service at once? In most occupied buildings, no more than two.
• Which go first? Start with the worst performers or the most critical.
• Will old and new work together? If controllers are replaced in phases, the old and new systems must be able to work as one group during the changeover.

What we recommend

Every building is different. Before you commit to either route, we recommend four steps.

1. An independent condition assessment. Have an expert who is neither your maintenance contractor nor a manufacturer inspect the mechanical, electrical and safety condition of the system.
2. A whole-life cost comparison. Compare both options over 20 to 25 years, including the capital cost, expected maintenance, energy use and what the equipment will be worth at the end.
3. A performance check. Measure how your elevators really perform against industry standards. The gap is sometimes smaller, or larger, than it feels.
4. A detailed comparison of options. Set out the scope, cost and timeline for both modernization and replacement, so the decision rests on facts.

At Doug & Danny we provide all four as part of our modernization service. Because we are independent of every manufacturer, our recommendation is based on what suits your building, not on selling equipment.

Next steps

If your elevators are approaching 15 to 20 years old, or are already giving trouble, now is the time to start planning. The earlier you begin, the more options you will have.

Ask for a modernization assessment

Doug & Danny are independent vertical transportation consultants. We give owners unbiased advice on modernization and replacement, so they can invest with confidence.