Huge loss incurred to Saket due to the decision to give Lift Contract to OTIS

Mail sent to society on May 11, 2018


(Uploaded late)

The Chairman/Secretary,
Saket CHSL.
Thane.

Dear Sirs,

Apropos the above, I want to bring to your notice that as I mentioned in yesterday's Joint meeting between Managing Committee and Repair Committee:
1) proper due diligence and application of mind was not done while awarding the lift renovation contract to OTIS 
2) and due to it, not only the society has been saddled with a 40 years old, outdated technology, but we have made a loss of at least 25 lakh rupees.

I will not allege that money exchanged hands because I can't prove it.

Please read the following very carefully.
For the price society is paying OTIS - Rs. 3.30/lakhs per lift, the following is available in the market:
a) Modern Technology
Distance based VF technology with creep less stopping and cabin speed regulation as a safety precaution.
(Otis has given us conventional single speed, brake stopping system, which is outdated).
b) Make or brand.
Monarch Innova brand which is inter nationally acclaimed, used extensively by other reputed companies like Kone, Thysen Krupp etc. They are the best in the latest distance based technology.
c) Ride quality: 
Smooth, seamless ride without starting or stopping jerks and thud's.
(Saketians can comment better on Otis).
d) Lift movement:
It has a digital, rotary encoder used to regulate cabin speed. This gives better floor leveling, gives over speed protection, prevents lift free fall for user safety.
(Saketians can comment better on Otis)
e) Effect of Power fluctuations:
Very rigid and stable for any supply condition.
(Otis is weak during power fluctuation. Its customized data in Microprocessor board gets changed, lift processor requires power resetting)
f) Call buttons and display:
From the best brands sought worldwide with 10 years life assurance.
(Otis sources from local vendors)
g) Floor leveling:
Dead floor level is not depending on load weight.
(Otis is +/- 2 inches)
h) ARD:
ARD system is embedded with the control system. Operates on single phase UPS ARD of 2KV power, coat appx. Rs. 2500/- of the UPS with life of 2 -3 years.
(Otis has not given ARD in their package).
I) Electricity saving:
Up to 40%
(Otis gives only 10%).
j) Maintenance:
One year full free comprehensive maintenance - all parts included.
(Otis condition was that we should give them 5 year AMC before signing contract. There also they cover only simple wear & tear parts. Main equipment like machine set, ropes, brake coil, transformer etc are not covered)
k) Market existence and availability:
The company has its HQ in Chennai and R&D center at Noida. Products and spares are available in the market easily. Brands like Kone, Thy-Krupp regularly use their products.
(Technology given to us by Otis is outdated.)
l) Life Assurance:
Minimum 15 years without any expenditure.
(Otis lift being outdated has no life assurance ).
m) Cost of AMC after free period:
Rs. 30,000/-/lift/year comprehensive.
(Otis offer not known clearly)
Reduction in existing breakdowns:
80-90%.
(Otis is unknown - they are not giving any indication)
n) Cabin: 
SS 304 Hairline with Mirror combination.
(Otis has given us only SS).
o) ARD Device:
Included in cost.
(Otis does not include ARD).
p) Cost of lift:
Rs. 3,25,000/- all told.
(Otis is charging us Rs. 3,30,000/- for the "rubbishment"... ohh, sorry refurbishment.

Will you still call the decision to give OTIS was good ?

Actual market costs of what Otis has done:
New Cabin : Rs. 55,000/-
Microprocessor: 18,000/- to 24,000/-
Rest: Rs. 20,000/- Max.
Let's give them 100% profit.
Still cost is Rs. 2 lakhs.

'Saket ko 1 Lakh per lift ka choona lagaya'.

Doesn't your blood boil..?

Nahi...?? To bolo...

Bollo ALL IZZ WELL...

Regards,

Dayanand Nene
(Very upset Member of the Managing Committee).

Society letter to Otis placing order:



Comparison between Market and Otis




Letter of Electrical Inspector checking lifts


Remark by Electrical Inspector that even after renovation, ARD not there.











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