Lloydminster city council has awarded a service contract to Kone Inc. for the elevators in the Cenovus Energy Hub.
Pete McHugh, City of Lloydminster manager of building services, presented the sole-source contract award at the Jan. 19 regular council meeting.
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“With the elevators at the Cenovus Energy Hub now fully commissioned and in operation, administration is required to ensure the elevators are serviced and maintained regularly,” he said.
During the procurement process, PCL Construction Management provided typical costs for service agreements from each vendor that placed a bid.
“Kone Inc. provided the lowest cost to supply, install and service the elevators,” said McHugh.
He says the service from Kone, who also services the RCMP building’s elevator, has been good.
“The service received has been very good. Across the City, all elevators are maintained by their manufacturer,” he said.
The annual cost of $9,960 is for a 10-year term and has an added benefit.
“This agreement doubles as an extended warranty – all parts and labour of the 10-year period are covered,” McHugh explained. “(There will be) reduced costs for any work not covered by the agreement and there has been an incident in the elevator where Kone was required to attend the site. That was people jumping up and down, it’s a safety mechanism and it locked the brakes on.”
Kone will be remotely monitoring the system and will be able to identify issues before it results in the elevator breaking down.
There is, however, an escalating price to the contract.
“They’re not able to tell me exactly what the increases are going to be, but looking at the past five years, it’s ranged from two per cent to seven per cent dependant on the year,” said McHugh.
Council awarded a 10-year contract to Kone for the servicing and maintenance of the Hub’s elevators at an annual cost of $9,960.
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