August 27, 2011
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Question
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Ken,
If I’m a sub to an electrician, installing a fire alarm system, do I need to use any of your contracts and if so who signs them.
Thanks
BW
Spectrum Systems
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Answer
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You can try and get the electrician to sign my form Subcontracting Agreement. One important feature of that contract is that it provides that the electrician is licensed to install alarms, and that there is a contract with the subscriber.
If you are working as a subcontractor you will not have a direct contract with the subscriber. You are therefore dependent upon the company hiring you to get the proper contracts signed so that you protected. You want to be covered by the provision that "contracts away liability for your own negligence" and limits your liability exposure. Without a contract you have no limits.
You should insist that your electrician, acting as your general contractor, get an All in One Fire Alarm Contract signed by the subscriber. Then both you and the electrician will be protected as best a contract can provide protection.
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Question
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Ken is that statement true? On the worth of his business if he puts all assets in wife’s name? [see comment below]
John P
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Here is the comment referred to above:
comment on long term contracts August 10, 2011
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Ken
If JE has no interest in long term contracts, he shouldn't need any contracts.
As long as puts his house and his cars in his wife's name, he should be
judgement proof, as the remainder of his business would be worthless.
B
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Response
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What B is referring to is that if you conduct business without a contract your business is going to have no value. He was not suggesting that putting your business in your wife's name would render it valueless.