March 6, 2012

 

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Question re paperless contracts

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Ken,

We allow faxes and scans since that is where the world is. We have a line in our contract that states "A facsimile or scanned copy shall be deemed as originals by both parties"

Although between the two parties there would be an agreement, in your opinion, would not having original ink affect the value of my accounts as a whole?

Robert Aiello, Vice President

High Rise Fire and Security

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Answer

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Copies of documents are acceptable evidence in court provided someone can testify that the copy is a true copy of the original. Some jurisdictions may still require testimony that the original is missing or disposed of as a matter of regular business practice.

Some buyers may want an original inked contract, no matter what the evidentiary value of a copy may be. Those potential buyer won't be interested in your accounts and that may affect the value by limiting competition among buyers which sometimes places a role in determining a selling price.

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Recommendation for printer

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Ken,

I hope this E-mail finds you well! I just wanted to take a moment to thank you for recommending www.monitoringcontracts.com.

We have used them to print the Contracts we purchased from you as well as business cards for all our employees as well as door hangers for our sales team. The quality of their work is top notch and their response and turnaround times are very impressive. They have worked hard to make sure our needs are met and that any modifications needed still meet all your legal requirements.

Respectfully,

Gregory J. Ohanessian Jr.

I-Tech Security

Mineola, NY

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Question re videofied verification

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Ken -

Thanks for your response. We have already started using the Videofied product and have been successful with it. The product only allows us to receive a 10 second clip of video upon the activation of the motion detector and there is

no way for the client to even view the image from the camera. In many ways it

is a video equivalent of the Sonitrol Audio detector. Based on that

understanding what do you consider to be the best contract?

Mike

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Answer

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Videofied system is for central station video verification. The Standard Monitoring Contract can be used. By using the Monitoring Contract you cover not only the video verification feed but any other modes of communication and monitoring systems.

Be sure to use the Sales Contract to install the system and a Service Contract if you're doing any service work after the warranty period on the sale. Keep in mind that the Monitoring Contract calls for servicing only the Communication system, which includes communication software, radio, cellular and Internet Connection device. This definition by the way is in the latest updated Monitoring Contract and All in One.

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Messy CCTV Question

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Hello Ken,

Re: Warranty, Power Outages, Ineffective Router, Customer Refuses to obtain a Static IP Address, One DVR stopped operating due to constant power failures, lack of maintenance, no contract…

What advise do you have on the following scenario:

If a company installed and 8 camera video system back in June of 2011 and the customer refused any maintenance on the system to this date. This particular customer has been having all of kind of problems with power outages, brown outs, router, alarm system, ruining the DVR, camera to stop working, alarm system to malfunction. We do nothing but Video Security Camera Systems.

Warranty Expires: June 27, 2012

The following reply from the subscriber was received:

"Thank you for your response. We are appreciative of your efforts and understand some of these circumstances are out of all our control. At this point, we need to get a handle on the complete situation. It is too difficult working with so many different individuals and companies. Each wanting to fault the other for the problem. I just want a functioning and operating system, which I have paid good money for! We are going to evaluate our options and look for an individual that can handle each one of these problems. Please hold off on coming to make an assessment. We will be in touch to let you know if we have faulty equipment.

Thank you for your help"

The question is:

If the customer retains another technician, and the technician finds faulty equipment, who will be responsible in replacing the faulty equipment that are still under warranty for 5 more months?

Since we were allowed to conduct an assessment, we suspect they are going to find one burned power supply and nothing else. They were complaining that one camera they cannot see anything out of that is very blurry we believe they are referring to a license plate camera

Nevertheless, your assistance will be greatly appreciated and await your response.

Sincerely,

Al

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Answer

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What a mess, and it's a pretty good example of how a security company, in this case specializing in CCTV, can create confusion by not using proper contracts. How do I know from the question? The word "maintenance" gave it away, compounded by the obviously unclear warranty terms.

If there is a sale, which is apparent here, with a warranty that hasn't expired, then the customer is entitled to the warranty that is expressed in the Sales Contract. I have no idea what warranty this CCTV operation has offered, but if they used the Standard Sales Contract, or the CCTV Sales Contract, then there would be a 90 day parts and labor warranty, and repair or replacement part would be optional with the security company. If the equipment was tampered with, which doesn't mean inspected by another, then the warranty is voided.

Once the warrant period is over a Service Contract should be entered into, either "per call" or "recurring revenue" relationship. Security companies are not generally responsible for electric surges or outages, lightening, communication pathways, be it POTS or VoIP, radio or cellular. Of course not using a proper contract can confuse everything and then you can expect subscribers to make demands for repair, replacement or refund for interruption or equipment failure or communication failure - all things you never intended to be responsible for.

And, what do you mean lack of mantenance? If you undertake to "maintain" then you better make sure its always working. Get yourself a cot and park yourself at the subsciber's location. Not what you have in mind? Then provide "service", which you perform, if contracted for, when you get a request for service. [note to the fire guys - I know some AHJ regs require you to "maintain" - and that's because the AHJ and even some of the regulartory agencies don't make the distinction between "maintenance" and "inspection and service"].

My suggest is that you offer to comply with your warranty, whatever that may be.