Commercial Fire - Who is the Subscriber and Who Owns the Phone Line?

Question:

**********

Ken

    Help!

    I am new to fire alarms, and I have had some legal issues. I work for commercial customers only.  When a tenant improves an empty shell building or completes a major remodel they have to install a fire alarm, but my question is who pays for it and who do I contract with? The owners of the building or the tenant?

    I'm having some issues when it comes to General Contractors; I explain that I can only do a contract with the building owner and not the GC or tenant. Am I correct?

    Now what about the phone lines? Who should own and pay for that?

    Also I would like to lease all my panels fire included, I'm having a hard time explaining to the customer a lease that has no buy out?

Please clarify..

Guido in NY

***********

Answer:

********

    You can contract with either the owner or tenant.  If the tenant, make sure the lease between the owner and tenant imposes that obligation and that the tenant is authorized to install the fire alarm, since that installation necessarily involves some alteration to the structure.  The Standard Form Contracts do provide that the tenant represents that it has the authority from the owner to make alterations to the premises to install the alarm system.

    You don't need to own the phone line.  The contract imposes that obligation on the subscriber. 

    If the subscriber is leasing the system, you will own it - with no buy out option.  Leasing the equipment strengthens your argument that the equipment remains personal property, not part of the realty, which could be an important distinction if there are prohibitions limiting the enforcement of exculpatory or indemnity provisions when real property is being repaired or maintained.  [NY has such laws.]  You need to learn how to market and "sell" the lease deal, just like you need to learn how to sell alarm systems and service.  There have been a number of articles suggesting how to best present and use the Standard Contracts.

*************

Comment on monitoring fire alarms

**************

Hi Ken,

    Joel Kent hit the nail on the head with his post regarding the monitoring of

smoke alarms. The building, fire and electrical codes are clear;

     “Listed or labeled equipment shall be installed and used in accordance with any

instructions included in the listing or labeling.”  So let the designer,

seller and or installer beware many, if not all,  smoke alarm relays

specifically point out that they will not operate on loss of AC power.

    For example Firex (Kidde); MULTI-FUNCTION RELAY MODULE No. 501instruction manual notes; “READ THESE INSTRUCTIONS CAREFULLY BEFORE INSTALLING THIS MODULE!” followed by “CAUTION: The MFRM will not operate without AC power.”

Reference:

http://www.firexsafety.com/NR/rdonlyres/225505B1-6732-4FBA-86DC-F9239F6CA9C1

/0/1101176B501.pdf

Sincerely,

Yours in Life Safety

John Drucker, CET

Fire Protection Subcode Official

Fire/Building/Electrical Inspector

New Jersey

***********

Comment on gaining access to building

*******

To Luis Arellano, III:

    We do the same thing and I have come up with a large, orange sticker that we stick to all entrances to the structure (think evidence seal stickers).  In our contract, we also have a consent to enter paragraph stating that we can enter the building, during our normal business hours, by any means necessary.  Now, while we’re probably not going to break down doors for a dialer, the language has been very, very persuasive in getting people to let us enter the home.  When it comes to Realtors, I don’t even ask for the name of the buyer; I don’t care.  I just tell them that if they want to close, I’d better get access to the building or we’ll lien the house (probably couldn’t do it but they might not know).  We’ve also shown up at “Open House” events in plain clothes and, with copy of contract in hand, disco the panel from the phone line.  It’s also very easy to call the broker the Realtor® works for.  He or she is responsible for the actions of the people that work under their brokerage license.  To date, we’ve never been totally unable to get into a structure.  I’d also suggest joining your local Realtor® associations, MLS and networking with home inspectors and their groups.  You’ll build powerful contacts and you’ll generally end up knowing someone that is involved in the sale or works for a company that is.  I have an Outlook™ distribution list that all of these people are in.  Then you slide $25 or so to the person that helps you and your problems start going away.

David Myers

Myers Protection Services

*****************  Sounds like you need one more item at the ready - a criminal defense attorney on retainer.

*****************

Summer program alarm companies

**************

Ken –

     Interesting on article on Pinnacle and New York. You pose a great question on how many subscriber will bail. When one of the other door-knocking companies experienced a similar judgment in Maryland, the company itself announced that a couple of days after the claim notice was sent out only 15% of the subscribers had decided to stay with the company. Here is a link to the story:

http://www.herald-mail.com/?story_id=218627&cmd=displaystory

I was amazed that only 15% of the folks in MD who responded were

planning to stick with APX - seems low, but perhaps they all felt they were

trapped and wanted to get out when they could. Once something is perceived as

a scam, folks head for the exit.

Rogers, Peter

************

no term contracts

************

re: TJ / NO TERM CONTRACTS:

    I hope that TJ realizes that the marketing strategy of not locking customers into a term contract is great for them but terrible for him.  What is TJ going to do when he needs a bank loan to grow his business, buy more equipment, etc?  What’s he going to do when it comes time to sell.  Without a term contract, his “business” is going to be worth nothing; a big fat zero.  I’ve bought several alarm companies over the years and I can certainly say that no buyer is going to purchase the accounts without a term contract or a God-awful holdback.  TJ: Think of a better marketing strategy. If not for you, for your family.  One day, someone is going to want to sell the business and retire.

David Myers

Myers Protection Services

Indianapolis, IN