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Question re cameras in nursing home
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Ken
    thanks for the informative forum here. I use your fire contract at present.
     I have a client in Illinois  that has asked me to install cameras in an assisted living facility. It's more like a nursing home from the looks of it as the
residents live in rooms that have a bed  and gets assistance with everything from
getting out of bed if they are able to whatever is needed next.
    They want the cameras installed in these rooms right away as well as hallways.
    My question is; can they use cameras In this environment and if so what legal provisions need to be meet if any in their contracts with residents and what
contract would I need.
Regards
Brett
Security Solutions
Chicago IL
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Answer
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    Of course there is expectation of privacy in the bed room, but a resident can consent to the cameras in the admission forms.  The cameras should not be covert, and safeguarding the data should be a primary priority.  Your obligation is simply to advise the subscriber to check local laws for usage and responsibilities.  The facility is most likely well acquainted with privacy issues because it is a health care facility.
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Question re getting long time subs to sign contracts
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Ken
    I own a small alarm company maybe 1500 accts our company has been in business for 27 years and has changed owners one time before it came back into the family.   That being said,  in the late 80's early 90's the contract we had was a simple 1 page contract more to ensure payment than hold on to that customer.  As the business sold the owners had no contracts with any customer and when we acquired the business back we took it with no contracts.  I am afraid that if we try to make our customers sign a contract now since they don't already have one they will either say no or go elsewhere.  
    Do you know of a way to make someone sign a contract without presenting them one in person or mail?   I guess my question is can the contract be posted on our website or somewhere and a letter be sent to show the customer their new contract without their signature on it?  I'd love to use all of your contracts but am afraid the customer loss would out weigh the gain.
Any help?
Thank you
Z
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Answer
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    When you used contracts in the past I am guessing that it wasn't to "ensure payment and hold on to the customer".  Then, and even more now, the single most important feature of the alarm contract is to "contract away liability for your breach of contract and negligence".   Enforcing payment is a second reason.  Together, these two provisions comprise the single most important reason for using proper alarm contracts, enhancing and maximizing the value of your company.
    You should not have too much difficulty getting your subscribers to sign contracts.  Other alarm companies have overcome this issue with considerable success.  Your first letter should get a 50% response.  The others will come on board with a little prodding.  Will you lose any accounts?  Maybe, perhaps probably.  But let's see if it's worth the effort and risk.  
    Because your subscribers have no contracts you are likely to face a reduction in multiple at time of sale of minus 5 x RMR.  Let's see how that may impact you.  1500 subscribers [and that's not a small company] should generate at least $30,000 RMR.  That means your company could have a value of over one million dollars.  A reduction of 5 x for no contracts is really misleading, because it's likely that the starting point for the multiple will also be lower.  I've also found that a company that doesn't use proper contracts is more likely to ignore other factors that enhances company value.  Quite frankly, if you lost a bunch [I am tempted to say 25% to 50% but that may be too many] of your subscriber base but got your business practices on the right path and the remaining subscribers under contract, overall valuation might end up pretty close, though your RMR cash flow would take a hit for a while.
    You can get your subscribers to sign up in a variety of ways.  A mailing is the first step.  Every time a service call is made is another.  You can post your contract on line and ask subscribers to go on line to sign up, but they are going to have to do a few things affirmatively to evince that consent.  You can't simple send them a letter stating that their new contract is on line and continued service constitutes their consent; that won't hold up.  Use the click through procedure on line to get their consent to the contract.
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Question re service tickets - paper and electronic format
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Ken
    Thank you for the great daily emails, they've been a big help to our business and educating my employees on many issues.
    We have purchased your contracts for sales agreements, service agreements and monitoring but I was wondering what your thoughts are for daily service tickets terms and conditions.  Most of our customers are under some type of a service agreement, but we do have some that only call us when they need us and we service their systems on an as need basis at a higher rate.  Should we have something on the back of our daily service ticket with additional T&Cs?
    On top of what you feel may be needed on the back page of a hard copy service ticket, we just recently switched to electronic forms on iPads for our service tickets, is it ok to just make page 2 of the ticket the T&Cs?
Thank you,
Brian
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Answer
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    A service ticket is not a substitute for a Service Contract.  The Standard Service Contract provides for an option for "per call" on a T&M basis, or RMR with labor and material included [for ordinary wear and tear].  Since the first order of priority is to "contract away liability for your negligence and breach of contract" either option for service is fine as long as the Service Contract is signed.
    You will note that a Service Slip is not on our order form for the Standard Alarm Contracts.  We do have the form but you have to call our Contract Administrator Eileen Wagda at 516 747 6700 ext 312 to get it.  The reason for this procedure is that the Service Slip is not a substitute for the Service Contract.  It's something you can use in addition to the Service Contract, especially if you have a "per call" service subscriber.  The terms and conditions will go on the back of your service slip form, and yes you can set it up electronically.  
    My main reason for suggesting that the Service Slip is not a substitute for the Service Contract is that I am concerned that you won't get the Service Slip signed for every service, or that it will be signed by an unauthorized person, or that it won't be given the same weight as a Service Contract.  Almost in all cases you are going to get that Service Slip signed after you perform the service.  The subscriber may decline to sign it or may not be home to sign it.  
    A Service Contract gets signed once and you are good to go thereafter.   I suggest using the Completion Certificate in conjunction with the Service Contract.  The Completion Certificate, also not a substitute for the Service Contract, provides that the alarm was working when you left the premises.  You get these contracts at www.alarmcontracts.com

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