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Question
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Ken,
Here is something you can opine on for your readers.
Alarm company installs a system and obtains a contract
6 months later, goes back at the request of the subscriber and installs a
low temperature device to the existing system. There is nothing formal for paperwork except the invoice which has no contractual language. The low temperature device fails. Does the contract provisions include or exclude the additional device?
Thanks
Bart A. Didden, Executive Claims Manager
Security America Risk Retention Group - SARRG
877-872-1266
bdidden@securityamericarrg.com
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Answer
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I am defending a case presently where a commercial fire alarm was installed [actually hadn't yet been fully installed but it was operating]. Sale and installation was pursuant to proposal. Year after the installation started a monitoring contract was entered into. Then there was fire loss. I'll spare you the details, but the subscriber, actually its insurance company suing under subrogation, sued the alarm company. While the monitoring contract has some protective provisions the plaintiff is claiming that the monitoring contract had nothing to do with the installation, and the claim is that it's the installation that was negligent. This of course is a very avoidable mess. The alarm co should have used a Commercial Fire All in One which covers sale, installation, service, inspection, monitoring and more. No confusion and a lot less hassle and uncertainty getting out of the lawsuit.
We see this more often in the context of service calls. If you don't have a Service Contract then you don't have the contractual protection when you perform the service call. Your Monitoring Contract won't cover you unless it is written is broad terms, which is unlikely and less likely to work to protect you.
This is not "brain surgery". You have to use contracts. And you have to use proper contracts. The best and most reasonably priced are found here: www.alarmcontracts.com. Why the best? Because these contracts are the product of constant feed back from alarm companies and constantly being updated to keep up with the changing technology and shifting legal landscape. Why reasonably priced? More alarm companies use these contracts than any other forms and we price them accordingly. For you "big" "national" "upscale" "different" alarm companies that prefer to have expensive custom contracts prepared by expensive fancy lawyers - no problem. Just let me know, I'll put on a suit and be happy to charge you more.
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Question
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Ken,
I am installing a burglar alarm and a cctv system in a home. The owners are married but for professional reasons use there maiden names. Do I need both names and signatures on the All in One residential contract?
Bob D
UB&F
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Answer
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It would be prudent to get both signatures on the Contract since both reside in the premises. It doesn't matter that they use their maiden name. Think ahead to either a loss or if you have to commence litigation to recover money owed to you. A non signing spouse will claim he or she is not bound by the contract terms, doesn't owe you money for your services and is not bound by any protective provisions in the contract. Can we get around those arguments? Maybe. It's easier to avoid them and sign up the contract right from the get go. Incidentally, what should you do if one of the spouses isn't home to sign the contract? The contract should be prepared for both signatures. you can ask one spouse to sign for the other, either by signing other's name or their own name on behalf of the other. it's not ideal, but it's better than not getting the signature. You can always follow up with the non signing spouse to confirm that the signing spouse had authority to sign for the other.
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Question
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Ken,
We’ve started working with an investment company that flips houses. We charge them (using your Sales Contract) to install an alarm system during renovation. They provifr incentive to their potential buyers with one-year pre-paid monitoring. They have just sold their first home and want to activate the alarm. Now it’s time to use the All-In-One Residential contract. The subscriber is the homeowner since it’s their property now. Where does the investment company get listed on the contract since they are paying the initial year up front?
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Answer
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Assuming you are not doing any monitoring for the investment company you can use the Sales Contract [though you need the All in One form so you can use the Sales portion of that form - you don't need the separate Sales Contract]. When the home is sold you will need the new home owner to sign the All in One because it includes not just monitoring but service and pretty much any other services you will be providing. That All in One will call for RMR payments for your services, including the monitoring. You will note on the contract that first year's monitoring charges are paid by the investment co. It's pretty simple and doesn't have to be in special form. You can indicate it on the front of the contract of part on the Schedule of Equipment and Services rider form that we give you when get the All in One.
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Question
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Ken
digital contracts. Do you have them available?
Joe Carney
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Answer
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You can learn how to create and use digital contracts [using our Standard Form Contracts] at http://www.alarmecontracts.com You can find this company on The Alarm Exchange under the Miscellaneous category. Let me know how you like their services and instruction. And hand in hand with digital, use a credit card processor familiar with the alarm industry: applynow@skybankfinancial.com also found on the The Alarm Exchange under the Financial Services category. Let me know if you got the best pricing and services.
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Question
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Ken.
Thank you for your daily information.
I have a customer I have been monitoring for a while (several years). We recently sent out new contracts to update our files. (Yours, thank you.)
They do not want to sign it without several, and I mean more than 65% of the contract changed. The situation is that neither of us can produce a copy of the original agreement. (Very strange, but this is the situation). They have been paying us for years. While we are doing our job daily, we do not technically have an agreement. The site has 24 hour security people with a Guard House. All calls for the alarm go directly to the on site guard house.
I don’t think this matters, but I thought I would mention it. With no agreement, what truly is my liability when they continue to pay for services that have been consistent for years?
This brings up an interesting conversation I had with another owner in the industry. How come I never hear about a little company getting in trouble for not having an agreement.
Thank you.
TW
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Answer
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Your alarm goes to the in house guard station, so I suppose your exposure in this situation is somewhat limited [compared to traditional alarm services]. You should of course have a contract because without it you've given up the right to "contract away liability for your own negligence" which will reduce or eliminate exposure for loss when the alarm services don't "prevent" the loss.
How come you don't hear about the little guy getting into trouble for not agreement? Because they aren't around long enough for anyone to hear about them or care about them. Now I am not talking about or to the few big successful alarm companies out there who have operated for decades without contracts and are doing just great. Those alarm company owners could have - and still can - save a lot of effort by shutting down their business and just buying a power ball lottery ticket. They are obviously lucky as heck.
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com. Most comments and questions get circulated.
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Northeast Security & Systems Contractors Expo Thursday, May 22, 2014 10 am to 5 PM at Royal Plaza Trade Center, Marlborough, MA. registration https://www.expotracshows.com/neacc/2014/ Presentation on Alarm Law issues and Q&A will be at 2 PM. For more info contact Gary Spaulding, NEACC President
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