A method includes plumbing an elevator shaft, installing a lowermost first section of guide rail elements manually to walls of the shaft, arranging an upwards and downwards in the shaft with a first hoist movable lifting frame, arranging an upwards and downwards in the shaft with a second hoist movable installation platform provided with a guide apparatus, an installation apparatus and an alignment tool, drilling holes and fastening support brackets to the walls of the shaft with the installation apparatus, lifting guide rail elements with a third hoist from the lifting frame and guiding said guide rail elements into position with the guide apparatus, joining consecutive guide rail elements with the installation apparatus, and aligning opposite guide rail elements with the alignment tool and locking the support brackets with the installation apparatus.