February 23, 2012
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Question
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Ken:
Many alarm panel manufactures are now offering very well integrated home control systems. These systems are making smart homes a viable commodity and I believe offer great opportunity for sales and RMR to installing companies and central stations alike.
However to accomplish full integration it seems that the knowledge of additional trades and licensing and other legal issues may come into play. Since lighting control may require the installation of line voltage hardwired switches, outlets, and other devices to the house's electrical system is a licensed electrician required to do that portion of the work? Likewise is the installation of controllable door locks
required to be done by a locksmith? What new liability issues do these services open up for the installer?
Now for your favorite part of the discussion. What contract do you have or will be available to covers this type of work?
Mark S. Fischer
www.systemssupportspecialists.com
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Answer
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One of the manufacturers is Honeywell who has Tuxedo Touch [ http://www.thesecuritychannel.com/ ] which, according to the web site will control the security system, lighting, door locks, blinds, and thermostats. I agree that adding any service that affords the opportunity for additional RMR is good business.
The alarm license permits installation of alarm / security and typically low voltage products that are or can be tied into the security system. But, work that requires licensed trades will require that the alarm company engage the licensed trade. Easily identifiable trades would be plumbers and electricians. Installing such things as home vacs, telephone systems, television, computer or audio wiring most likely would require a home improvement license. Different jurisdictions will deal with license issues differently. In New York for example, the fact that you are licensed to install an alarm system would not permit construction of a cabinet or rewiring electrical systems. Some jurisdictions may permit some work incidental to licensed work but not technically covered by the license. California comes to mind. Keep in mind that the penalty of performing work that requires a license when you don't have the license is often that the Subscriber doesn't have to pay for the work and any contract is unenforceable. Make sure you have the right license to perform your work and services. We do have a licensing department at Kirschenbaum & Kirschenbaum and you can contact Jennifer Kirschenbaum, Esq. 516 747 6700 ext 302 for alarm licensing information.
The existing Standard Form Contracts can be used. The All in One covers the installation, monitoring and service of security equipment and provides for remote access and control by the Subscriber. While there are other contracts that may be more specific, such as the Remote Video Monitoring Contract [used for video remote access through manufacturer's server] or the Subscriber Enabled Monitoring Service Contract which is used for Subscriber's remote access and control of the security system and any other integrated systems connected to the security system [this contract does not provide for central station monitoring].
The CCTV Sales contract also now provides for Subscriber remote access