Risk Level
HIGH
BID WITH CONDITIONS. Include escalation contingency (15-20% of labor), phasing allowances, and explicit exclusions for structural/fire alarm modifications not shown on drawings.
Total Findings
129
Critical
15
High
30
Standard
74
Executive Summary
This is a 50-unit elevator modernization spanning passenger, service, and freight elevators across a high-rise hotel and casino resort. The specification requires full machine, controller, and door operator replacement with cab refurbishment. Key risk areas include firm pricing over a multi-year phased schedule, turn-key code compliance responsibility, and extensive owner/GC interface coordination. The project demands careful attention to phasing logistics, material escalation contingencies, and by-others scope boundaries.
Go / No-Go Scorecard
Est. Value
$8M - $12M
Risk Level
HIGH
Exposure
$1.2M - $2.5M
RFIs
9
Recommendation
BID WITH CONDITIONS. Include escalation contingency (15-20% of labor), phasing allowances, and explicit exclusions for structural/fire alarm modifications not shown on drawings.
Flagged Items
Turn-key code compliance responsibility transfers all risk to contractor
Unbudgeted code upgrades could add $200K-$500K per phase if AHJ requires seismic or fire service changes beyond spec scope.
Firm and final pricing over 4-year phased schedule with no escalation clause
Material costs (steel, copper, controllers) could rise 15-25% over project duration without contractual relief.
Liquidated damages of $500/unit/day for late completion
With 50 units across 4 phases, schedule slippage on any phase compounds LD exposure to $25K/day.
Owner reserves right to add units at original bid prices
Additional units at year-1 pricing in year 3 or 4 erodes margin. Cap quantity or add escalation trigger.
Contract Terms
Payment Terms
Net 60 from approved invoice. Progress billing monthly based on % complete per unit.
Retention
10% retained until substantial completion of each phase. Final release 60 days after punch list.
Bonds
Payment and performance bonds required. 100% of contract value.
Insurance
$2M general liability, $5M umbrella, workers comp per state requirements.
Liquidated Damages
$500 per unit per calendar day beyond scheduled completion date.
Warranty
2-year full parts and labor warranty from date of final acceptance per unit.
Escalation
No escalation clause included. Firm pricing for duration of contract.
Spec Completeness
26 items need clarification before pricing
Drawings referenced and phasing defined, but no addenda included with spec package. 2 missing drawing references and 1 conflict between Division 14 and Division 26 scope boundaries.
Tier Distribution
Key Decisions (5)
Section 1.01 GENERAL CONDITIONS: E. Bidding documents: 3. The Elevator Contractor shall be responsible for all building modifications to provide a code compliant elevator modernization. All sub-contractors will be contracted directly with the elevator contractor. Elevator contractor shall obtain bids from sub-contractors that are approved by the Owner and/or Owners Representative. This is a turn-key modernization and no change orders will be approved for code required work (at the time of permit) that was not included in the bid amount.
GENERAL CONDITIONS: B. All pricing shall be firm and final. Bidders should take into consideration the overall amount of time it will take to complete the modernization and shall price labor costs accordingly. No adjustments will be allowed for labor increases.
This is a turn-key modernization and no change orders will be approved for code required work (at the time of permit) that was not included in the bid amount.
Section 1.06 RELATED WORK INCLUDED BY ELEVATOR CONTRACTOR IN THIS SECTION: 4. Card readers: Including wire from machine room j-box to car top j-box, interfacing with elevator controls and installation in elevator car, connection in machine room and testing of system. Note card reader panel is not allowed inside the machine room. Contractor shall coordinate with sub-contractors to complete all required work at no additional cost to the Owner. Reuse existing or Owner supplied new card readers.
Liquidated damages in the amount of $1,000.00 per day per elevator will be assessed for each calendar day after the substantial completion date that the elevator is not available for normal service
Equipment Inventory
| Unit | Type | Capacity | Speed |
|---|---|---|---|
| E-1 | Passenger | 3,500 lbs | 500 FPM |
| E-2 | Passenger | 3,500 lbs | 500 FPM |
| E-3 | Passenger | 3,500 lbs | 500 FPM |
| E-4 | Service | 4,500 lbs | 350 FPM |
| E-5 | Service | 4,500 lbs | 350 FPM |
| E-6 | Freight | 6,000 lbs | 200 FPM |