April 9, 2011
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Question
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Ken,
I've been approached by a fellow alarm co for assistance in programing an alarm system for them. Do you have some magic document that protects me in this situation?
Thanks,
Jamie
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Answer
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A subcontractor contributing to a security system has plenty to worry about besides getting paid for the work. The risk of being sued for the alarm failure is almost as high as the alarm company in direct contractual relations with the subscriber. Although the subcontractor would not be sued for breach of contract, all of the tort causes of action would be available to the subscriber against the subcontractor.
Generally a subcontractor will not have a contractual relationship with the subscriber. Therefore the subcontractor will not have a contract that contracts away liability for the subcontractor's negligence in performance.
How can the subcontractor get some protection? Unless the subcontractor can get the subscriber to sign the subcontractor's contract, the subcontractor has to rely upon the protective provisions in the hiring alarm company's contract. As a subcontractor you should insist on seeing the subscriber's contract and make sure the alarm company and its subcontractors, including you, are protected by the contractual provision exculpating or limiting liability.
As the subcontractor you should also have a Subcontract with the hiring alarm company, and you shou