KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Property manager won’t approve Fire Alarm contract and wants to work through GC
May 5,  2022
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Property manager won’t approve Fire Alarm contract and wants to work through GC
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Ken,
          We normally use your All in One Fire agreement. We have a scenario in which the building owner is using a Property Management company serving as the owner’s agent.
          The Property management/Agent is unwilling to sign our All in One Fire Agreement and requested that we sign its contract (with minimal redlines).
We redlined the contract and added many of the previsions you push us to carry. They did not agree with it.
          They then suggested we work through a GC that they use.
          If we were to get the GC to sign the All in One Fire Agreement would this this be a solution?
Thank you,
Susan
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Response
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          This is fairly common issue.  Either the agent or the owner won’t sign the Fire All in One because
  *  agent or owner always insist that their form agreement be signed and not your agreement
  *  agent or owner want to work through a GC who will engage you as a subcontractor
          I’d be rather surprised if the GC was willing to sign the Fire All in One.  They usually like to work with an AIA contract or a very similar home grown form.  The fire alarm installation is profitable enough you can sign the owner’s or GC’s form agreement but watch out for the hoops you will be required to jump through to get paid and be sure to name owner, agent, architect and GC as additional insured on your E&O policy.  If you see anything you don’t understand you should send it to counsel for review.  Concierge Clients get a free half hour each month for contract review.  Join the program.
          You need to consider another threshold question before signing the owner’s or GC’s agreement, and that question is whether the installation job is worth doing if you’re not getting the after-install services, monitoring, repair service and inspection.  You should know about the after-install services before you commit to the installation contract.  In fact, you should insist on the owner [or owner’s agent if you’re sure the agent has authority to bind the owner] signing the Fire All in One before you sign the installation contract.  You may conclude that the installation job isn’t worth it unless you’re getting the RMR after-install services, or you might decide that you have to increase the installation charge since that’s all you’re likely getting.
          Same analysis goes for security systems, though it’s the Commercial All in One.    I think a good analogy is would you be willing to install a residential alarm at or below cost if you weren’t getting any after-install RMR services.  I doubt it; you’re not in business to break even or lose money.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com