Elevators installed in condominiums and buildings require regular inspections to ensure safe use for occupants.
Since landlords are primarily responsible for elevator management, it is worthwhile to have knowledge about inspections.
Many elevator inspections are legally mandated, and various types of examinations and regulations are stipulated.
In fact, maintenance contract types are divided into two categories: "POG contracts" and "FM contracts," each with its own advantages and disadvantages.
Many people may not even be aware that different contract types exist for inspections.
That is why this article provides a detailed introduction to the basics of elevator inspections.
To ensure that the elevators in your owned or managed properties operate safely without accidents, please use this article as a reference when carrying out inspections and examinations.
Understanding the Basics of Elevator Inspections
Landlords who manage properties with elevators are likely aware that inspections and examinations are required.
However, some landlords may not know exactly what takes place during an elevator inspection.
Inspections have different types and examination items, and there are laws and regulations concerning them.
To manage your property with confidence from both a legal and safety management perspective, you first need to understand the basics of elevator inspections.
Types of Elevator Inspections
Elevator inspections fall into three categories: "periodic inspection reports," "performance inspections / periodic voluntary inspections," and "maintenance inspections."
Inspections are legally required as an obligation of the property manager, and all of them must be carried out.
Let us introduce the details of each type of inspection one by one.
Periodic Inspection Report
The periodic inspection report is an inspection system stipulated under Article 12 of the Building Standards Act.
Neglecting this inspection can result in a fine of up to 1 million yen.
Periodic inspection reports are conducted by first- or second-class architects or elevator inspection engineers, with the management responsibility falling on the owner, such as the landlord.
The inspection targets include all products except home elevators, elevators subject to performance inspections, and elevators with a load capacity of 1 ton or more.
Inspections are conducted approximately once every 6 months to 1 year, and when an inspection is carried out, it must be reported to the relevant specific administrative agency.
What Is the Specific Administrative Agency to Report To?
As mentioned above, periodic inspection reports are mandated under Article 12 of the Building Standards Act.
Article 12 of the Building Standards Act states that "qualified personnel must conduct periodic inspections and report the results to the specific administrative agency."
The "specific administrative agency" referred to here can be found in the list of specific administrative agencies maintained by the National Building Examination Board Association.
Failure to report may result in penalties, so always make sure to submit a report after conducting an inspection.
The reporting documents required for this process can be handled on your behalf by the inspection contractor.
Performance Inspection / Periodic Voluntary Inspection
The performance inspection and periodic voluntary inspection are inspection systems stipulated under the Industrial Safety and Health Act.
Neglecting to conduct these inspections can result in imprisonment of up to 6 months or a fine of up to 500,000 yen.
These inspections are conducted for elevators with a load capacity of 1 ton or more, and consist of three tests: appearance test, operation test, and load test.
If the elevator you manage falls under this category, make sure to carry out the inspections.
The performance inspection is required once a year, while the periodic voluntary inspection is required once a month.
The Necessity of Performance Inspections and Periodic Voluntary Inspections
Some people may not fully understand the difference between performance inspections and periodic voluntary inspections, or why they are necessary.
Most elevators are subject to periodic inspection reports, but for those with a load capacity exceeding 1 ton, both the performance inspection stipulated under the "Industrial Safety and Health Act" and the periodic voluntary inspection stipulated under the "Crane Safety Regulations" are mandatory.
Qualifying elevators receive an inspection certificate upon manufacture after passing the required permits and inspections, but this certificate has an expiration date, and a performance inspection must be conducted to renew it.
Furthermore, elevators subject to the mandatory performance inspection are also required to conduct a periodic voluntary inspection once a month.
To summarize: the performance inspection is necessary to renew the validity of the inspection certificate, and a periodic voluntary inspection must be conducted once a month.
Performance inspections can only be conducted by labor standards inspection offices or performance inspection agencies certified by the Minister of Health, Labour and Welfare, with owners and managers bearing responsibility.
For periodic voluntary inspections, the performance inspection agency conducts the examination, and the business operator bears responsibility.
Maintenance Inspection
Unlike periodic inspection reports and performance/periodic voluntary inspections, maintenance inspections are not legally mandated.
As a result, it is easy to think that maintenance inspections are not necessary, but be aware that Article 8 of the Building Standards Act contains an "effort obligation."
Article 8 of the Building Standards Act states that "owners, managers, and occupants of buildings are required to make efforts to maintain the site, structure, or building equipment of the building in a lawful condition."
Although not legally required, this indicates that buildings must always be kept in a safe condition.
There are guidelines for appropriate maintenance management, and maintenance inspections are conducted at frequencies such as once a month or once every three months, depending on usage frequency.
The content of maintenance inspections is described in detail in the Ministry of Land, Infrastructure, Transport and Tourism's "Standard Contract for Elevator Maintenance and Inspection Services."
Since this document serves as the basis for inspection content, make sure to confirm the scope of work when requesting services from an inspection contractor.
Maintenance Contract Types: "POG Contract" and "FM Contract"
Are you aware that elevator maintenance contracts are divided into two types?
The two main contract types are the POG contract and the FM contract, both used in elevator maintenance agreements.
Below, we will explain each of the POG and FM contracts.
What Is a POG Contract?
The "POG" in POG contract stands for "Parts," "Oil," and "Grease," and refers to a contract that covers only basic inspections.
If maintenance issues are found during an inspection, repair costs will be charged separately.
Advantages
With a POG contract, you only pay the contractor for the cost of performing maintenance.
Therefore, if the elevator does not require any repairs or parts replacements, it is possible to keep costs down.
Annual maintenance costs per elevator unit range from 150,000 to 200,000 yen, and some contractors may replace consumable parts within a predetermined scope.
Disadvantages
The main disadvantage of a POG contract is that repair and parts replacement costs are not included.
As mentioned in the advantages section, costs can be kept low when no repairs or parts replacements are needed, but depending on usage frequency and age, this can become a disadvantage.
When an elevator has been in service for many years, the frequency of breakdowns and malfunctions increases.
As a result, if repairs and parts replacements are not covered in the contract, you will need to pay repair costs on top of maintenance fees.
Cases Where a POG Contract Is Recommended
Since a POG contract only covers basic inspections of parts, oil, and grease, it is better to choose a POG contract for "newer properties" where repairs and parts replacements are unlikely to be needed.
However, a POG contract is very helpful for landlords who want to minimize maintenance and management costs regardless of the property's age.
For landlords who do not mind negotiating individually when repairs are needed, there is a high likelihood of being able to keep management costs down.
What Is an FM Contract?
Next, let us introduce the FM contract.
The "FM" in FM contract comes from "Full Maintenance."
An FM contract covers not only the basic inspections included in a POG contract, but also all repair and parts replacement costs as part of the maintenance fee.
The monthly fee is higher than a POG contract, but no additional costs are required even if repairs or parts replacements are identified during maintenance.
Advantages
With an FM contract, no charges beyond the monthly maintenance fee will be billed even if repairs or parts replacements are found during inspections.
Since you know the costs agreed upon at the time of contract, this also has the advantage of making it easier to track annual elevator expenses.
With a POG contract, when repairs or parts replacements are needed, the contractor first presents an estimate to the landlord, and work begins only after approval is obtained.
With an FM contract, on the other hand, only the maintenance fee needs to be paid and no additional costs are incurred, making it possible to carry out work without the time and effort involved.
Disadvantages
While the advantage of saving time and effort exists, many contractors set their base fees at a higher rate.
The statutory useful life of an elevator is 17 years, and a newly installed elevator will rarely experience breakdowns.
Therefore, for newer elevators, a POG contract is more likely to result in lower maintenance costs.
Cases Where an FM Contract Is Recommended
Older properties tend to experience elevator breakdowns and malfunctions more frequently.
Since repairs and parts replacements are also needed more often, an FM contract will help keep maintenance costs down in such cases.
Also, properties with many units will naturally see higher elevator usage frequency.
Higher usage frequency leads to greater parts wear and an increased number of repairs and replacements.
For landlords who own multiple properties, an FM contract, which reduces the effort required for management, is also recommended.
Market Rates for Elevator Inspections by Contract Type and Contractor
Now that you understand the details and necessity of elevator inspections, you are probably curious about how much they cost.
Below, we will introduce the market rates for elevator inspection costs.
Market Rates for POG and FM Contracts
The cost of elevator inspections is higher for FM contracts than for POG contracts.
As introduced in the sections above, this is because FM contracts include the cost of repairs and parts replacements in the monthly fee.
The difference between POG and FM contracts amounts to approximately 20,000 yen per month per elevator unit.
POG contracts range from 20,000 to 50,000 yen per month, while FM contracts range from 30,000 to 60,000 yen per month.
When calculated over a year, this results in a difference of approximately 150,000 to 200,000 yen, so consider the age of the property and the elevator when making your decision.
Two Types of Elevator Inspection Contractors
There are two types of maintenance contractors for elevator inspections: "independent companies" and "manufacturer-affiliated companies."
Manufacturer-affiliated companies are subsidiaries of elevator manufacturers such as Toshiba and Mitsubishi, and can only perform maintenance on their own manufacturer's products.
On the other hand, independent companies have no affiliation with any manufacturer and can generally handle maintenance for any type of elevator.
Costs Differ Between Independent and Manufacturer-Affiliated Companies
For FM contracts, the market rate is 40,000 to 60,000 yen for manufacturer-affiliated companies and 30,000 to 50,000 yen for independent companies.
For POG contracts, the rate is 30,000 to 50,000 yen for manufacturer-affiliated companies and 20,000 to 40,000 yen for independent companies.
Comparing these contractors, independent companies are 20 to 50% cheaper than manufacturer-affiliated companies.
Therefore, landlords looking to reduce costs should choose an independent contractor.
Independent Contractors Also Have Disadvantages
While independent companies offer the advantage of lower costs, they also have disadvantages.
Independent contractors with less experience and knowledge may have inferior technical skills compared to manufacturer-affiliated contractors.
However, manufacturer-affiliated contractors have been in operation for a long time, giving them extensive inspection track records and years of experience.
They possess specialized technical skills and knowledge for the elevators of the manufacturers they service, so you can entrust them with confidence.
While the desire to reduce elevator inspection costs is understandable, elevator safety is a critical matter that affects people's lives.
When selecting a contractor, choose one that is trustworthy not only in terms of cost, but also in terms of technical skills and knowledge.
Which Should You Choose for Elevator Inspections: POG Contract or FM Contract?
Which should you choose for elevator inspections — a POG contract or an FM contract?
The key is to understand the characteristics of each contract type and choose the one that best suits your property so you can maximize the benefits.
Below, we introduce the cases where each contract type is most suitable.
POG contracts are best suited for newly built or relatively new condominiums.
Elevators in new or newer condominiums are also new, making them less prone to breakdowns and requiring fewer repairs.
Therefore, a POG contract will result in lower repair costs than an FM contract.
While individual negotiations are required each time a repair is needed, which takes some effort, repair costs can be kept lower.
On the other hand, FM (Full Maintenance) contracts are best suited for "condominiums with many units," where elevator usage is naturally higher.
When the elevator is used more frequently, the number of repairs will inevitably increase.
In such cases, having an FM contract makes repairs more cost-effective.
Additionally, FM contracts are also recommended "for older condominiums with frequent elevator breakdowns" and "for those operating multiple real estate properties."
This allows you to take full advantage of the FM contract's benefit of "reducing the management burden on the landlord."
What Is "Existing Non-Conformance" in Periodic Inspections?
Next, we will explain in detail what existing non-conformance means in the context of periodic inspections.
What Is Existing Non-Conformance?
Existing non-conformance refers to "a situation where a condominium was built or an elevator was installed in compliance with the law at the time of construction, but subsequent legal amendments have rendered it non-compliant with current laws."
Laws such as the Building Standards Act change slightly every year, and the content may have changed significantly between the time the condominium was built or the elevator was installed and the present day.
This discrepancy between old and new laws is referred to as existing non-conformance.
In Japan, there is no compulsory enforcement to comply with new laws, so leaving existing non-conformance as-is does not constitute a violation.
However, if you wish for residents to use the condominium and elevators safely, it is necessary to address existing non-conformance.
Events That Triggered Legal Amendments
In 2009, the Ministry of Land, Infrastructure, Transport and Tourism enacted amendments to elevator regulations.
There were two events that triggered these legal amendments.
The first event was an elevator malfunction caused by a major earthquake in northwestern Chiba Prefecture.
The earthquake caused more than 60,000 elevators to stop, trapping people inside, which became a major social issue.
This social problem of elevator entrapments became the catalyst for the legal amendments.
The second event was a personal injury accident involving Schindler Elevator Corporation.
In June 2006, the accident occurred at "City Heights Takeshiba," a 23-story rental apartment building in Tokyo.
A high school student who was attempting to exit the elevator backwards while pushing a bicycle was killed when the elevator suddenly moved and trapped them.
Following emergency inspections of Schindler Elevator Corporation's elevators, the safety of the elevators was called into question, leading to the legal amendments.
What Changed with the Legal Amendments
So how exactly did the elevator regulations change with the legal amendments?
The first change was the mandatory installation of seismic control devices.
By mandating the installation of seismic control devices, it became easier to prevent the problem of people being trapped inside elevators during earthquakes.
The second change was the mandatory duplication of brakes.
By installing two independent brakes, it became possible to safely hold the elevator car even if one brake fails.
Differences in Safety
Seismic control devices existed before, but their installation in elevators was not mandatory.
As a result, there were elevators with seismic control devices installed and elevators without them.
However, following the legal amendments, the installation of seismic control devices is now mandatory in all elevators.
By installing seismic control devices, elevators now stop at the nearest floor and open their doors when seismic vibrations are detected.
This has made it possible to prevent people from being trapped in elevators during earthquakes.
Additionally, the mandatory duplication of brakes has improved the safety of elevator cars.
A "specific distance detection device" that detects when the car has moved away from the landing has been introduced, enabling detection of door-open travel.
Through the mandatory installation of seismic control devices and the mandatory duplication of brakes, elevators have become safer to use not only during normal operation but also in emergencies.
However, since previous elevators also had safety devices installed, the level of safety has not changed dramatically.
It is best to understand this as having made elevators somewhat more reliable in emergency situations.
How to Address Existing Non-Conformance
Existing non-conformance simply means the elevator does not comply with current laws — it is not a violation per se.
Many elevators in condominiums built before 2009 are likely to fall under the category of existing non-conformance.
While no penalties are imposed for leaving existing non-conformance unaddressed, it is necessary to address it if you want to improve the safety of the condominium and elevator.
To resolve existing non-conformance, the elevator must be replaced.
For landlords managing multiple apartment buildings and condominiums, this may require funding of close to several million yen in some cases.
Therefore, try to address existing non-conformance in conjunction with the elevator replacement cycle.
Many landlords replace their elevators after 20 years, in line with the useful life of the equipment.
If the elevator was installed or replaced between approximately 2003 and 2008, before the legal amendments, the guideline is to replace it with a new elevator within 5 years.
For elevators installed or replaced before that period, consider addressing the existing non-conformance.
What Is "Remote Monitoring," the New Maintenance and Management Contract?
Companies such as Japan Elevator Manufacturing, Toshiba Elevator and Building Systems Corporation, and Japan Elevator Service Holdings Co., Ltd. are now offering "remote monitoring" as a new maintenance and management contract.
What are the features and challenges of remote monitoring?
Features of Remote Monitoring
Let us look at the common features of elevator remote monitoring systems.
・Remote Automatic Monitoring
Remote monitoring watches for and diagnoses abnormalities such as elevator entrapments, door opening/closing failures, safety circuit activations, electrical system abnormalities, and startup failures.
If someone becomes trapped inside an elevator, remote rescue and temporary restoration can be carried out through the intercom installed in the elevator.
・Remote Automatic Inspection
Remote diagnostics is a function that automatically diagnoses the elevator without human intervention.
The car's travel condition, door opening/closing condition, brake operation status, intercom operation status, and whether safety switches including the hoistway limit switches are operating normally are all automatically diagnosed remotely.
Challenges of Remote Monitoring
While a system capable of remote automatic monitoring is convenient, remote monitoring still has some remaining challenges.
Let us introduce two of the main challenges.
・Communication Security
If the communication security of remote monitoring is weak, there is a risk of hackers taking over the network.
To ensure safe remote monitoring, security precision must be improved.
However, building a large-scale network system requires funding.
As a result, securing the necessary funds can be a challenge for remote monitoring in smaller condominiums.
・Cost Balance Including Communication and Installation Costs
When implementing remote monitoring, a dedicated communication line is used.
The communication costs will be higher than conventional systems, and the cost and quality vary.
In addition to communication costs, there are also initial costs such as installation fees and equipment costs.
The fact that these costs are incurred, and the overall cost balance, are also cited as challenges.
How to Choose an Elevator Inspection Contractor
Here are three key points for choosing an elevator inspection contractor.
Landlords who are unsure how to select an inspection contractor should use this as a reference.
Check the Contractor's Track Record
When selecting an elevator inspection contractor, always check the contractor's track record.
When you learn about a contractor through a phone directory or a referral from an acquaintance, it can be difficult to determine which contractor is reliable.
There are cases where someone casually contacts a contractor to come to their condominium for an explanation, only to discover the contractor was disreputable.
Therefore, it is important to verify the contractor's track record to ensure you can confidently entrust them with inspections.
Track records can be confirmed on the contractor's website.
If a contractor's website does not list or introduce any track record, they may not have much experience.
In such cases, avoid choosing contractors that appear to lack a track record.
A contractor with an extensive and well-regarded track record will be easier to entrust with inspections confidently.
Confirm Emergency Response as Well
When selecting an elevator inspection contractor, one often overlooked point is how the contractor responds in emergencies.
If a contractor provides no support in emergencies, residents will have to use stairs when the elevator breaks down.
Additionally, failure to respond promptly during a disaster could lead to further problems.
To prevent such situations, it is important to choose a contractor that responds promptly in emergencies.
Before hiring a contractor, ask them how they respond in emergencies.
It is even better if you can get specific details about how they have handled situations in the past.
Learn to Recognize the Characteristics of Disreputable Contractors
In recent years, the presence of disreputable contractors among renovation companies has become a problem.
Most contractors are reputable, but disreputable contractors do exist among elevator inspection companies as well, so caution is necessary.
When selecting an elevator inspection contractor, take care not to be deceived by disreputable contractors.
Here we explain the characteristics of disreputable contractors so you can avoid being misled.
・Contractors Who Offer Extreme Discounts
Contractors who discount elevator inspection fees to an extreme degree may be disreputable.
Elevator inspections and replacements tend to involve large sums of money.
However, the breakdown of costs is often difficult for non-specialists to understand, making it hard to judge from an estimate whether the price is high or low.
Disreputable contractors tend to create inflated estimates in advance and then offer steep discounts to entice clients into signing contracts.
A truly reputable inspection contractor will prepare an estimate at a fair price and explain in detail why each cost is necessary.
Be wary if you encounter a contractor offering extreme discounts.
・Contractors Who Do Not Improve Design Plans
Suppose you decide to replace your elevator with a new one and contact a contractor.
Even in cases where you ask the contractor to prepare an estimate based on a design plan you have already prepared, saying "I would like you to create an estimate for replacing the elevator with this design plan," caution is still needed.
A reputable contractor would not adopt another company's design plan as-is for an elevator replacement.
Due to considerations of ethics and safety, they would not simply adopt the design plan unchanged.
Even if you want to commission construction cheaply, do not hire contractors who claim they can do it cheaply without revising the design plan.
Consider them a disreputable contractor.
Summary
In condominiums equipped with elevators, elevator inspections must be conducted to ensure safe use.
When commissioning inspections, you will choose between two maintenance contract types.
A POG contract involves hiring a contractor and paying for repairs individually whenever repairs become necessary.
An FM contract includes basic inspections and repair costs within the maintenance fee.
For new or newer condominiums, repair frequency is low, so a POG contract will be more cost-effective.
On the other hand, for older condominiums or landlords operating multiple condominiums as real estate investments, an FM contract tends to be more cost-effective and less burdensome to manage.
Please use this article as a reference when commissioning elevator inspections from a reputable contractor.
Frequently Asked Questions About Elevator Inspection Contracts
Q1. Which is more cost-effective, a POG contract or an FM contract?
For newer properties, a POG contract keeps costs lower. For properties 20 years or older, an FM contract is more reassuring as it includes parts replacement costs.
Q2. What happens if elevator inspections are neglected?
It constitutes a violation of the Building Standards Act and a fine of up to 1 million yen may be imposed. If an accident occurs, criminal liability may also be pursued.
Q3. What are the typical costs for elevator inspections?
Monthly fees of 30,000 to 50,000 yen for POG contracts and 40,000 to 80,000 yen for FM contracts are common. Costs vary significantly between manufacturer-affiliated and independent contractors.
