QUESTION:

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Ken;

 I provide security for a multi (2) tenant warehouse.  The building was built two years ago as a rental income property.   The building is fully sprinkle red and one tenant was occupying a space when the second tenant moved in. 

 The sprinkler system is NOT MONITORED.

 The Fire Marshall, before he allows the second tenant to get a Certificate of Occupancy, requires the TENANT to monitor the sprinkler system.

1- Under the code a sprinkler system shall be electronically supervised.  isn't this the responsibility of the building owner?

2- What if the tenant moves out? Does he remove the protection?

3- If the tenant pays to monitor the sprinkler system that was mandated to be installed prior to construction who should pay for monitoring?

 The customers lease is silent about the fire protection and any responsibility to inspect, test and repair the sprinkler system.  I am just an electrician but isn't this clearly the owners responsibility?

Joel

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Answer:

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 Ordinarily building owners contract for the installation and monitoring of a fire alarm system.  Buildings generally have a single fire alarm system, although buildings with tenants may have additional "fire" alarm systems which may be nothing more than smoke and heat detectors attached to the intrusion system.

 Landlords and tenants can provide by terms in the lease who has the responsibility to install and monitor the fire alarm system.  Alarm companies are rarely in a position to request the lease, and I'm not so sure you as the alarm company should care.  You expect some to sign your Fire Alarms Sales contract, a Fire Alarm Inspection / Service contract and finally a Fire Alarm Monitoring contract.

 Those contracts should be signed by the party who is going to be paying you.  That is the party you are responsible to.  The contract will specify that there are no third party beneficiaries to the alarm contracts; your duty runs only to the alarm subscriber.

 But ---- you know that others will be in that building.  You know that besides an owner, tenant, personal property, fixtures, equipment and inventory, employees and guests may be on the premises.  Fire can result in property damage, personal injury and death.  A fire can spread to adjacent buildings. 

 Your contract is with your subscriber, no one else.  The contract will protect you against claims made by your subscriber.  To protect against claims made by others who have not signed your contract you need to comply with local fire alarm installation codes and your AHJ.  Only your full compliance will insure that you will be able to successfully defend against claims.  Yes you will get some protection from your contracts because the contracts will specify your duty and to whom that duty is contractually owed, but failure to comply with AHJ requirements is a sure way to leave yourself exposed to unlimited potential liability.

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COMMENT & QUESTION on should be signing contracts:

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Hi Ken,

    “Keep in mind that if you get a check with both spouses, names on the check then the check is from both of them even if only one signs the check.”

    Keeping that logic in mind, does it also hold true if I get a contract  with both spouses names on the contract, that the contract is with both of them, even if only one signs the contract? Only one spouse ever signs my contracts, even with both names on the “Buyer’s Name” line as there is only one line for one signature and often only one spouse is present.

    If it is not the same legal logic, is it OK for me to legally adjust the contract within “Microsoft Word” to accommodate the additional signature line?

Thanks.

Andy Lapinski

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Answer:

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       If only one spouse signs the contract then you only have one, not the other.  Although the non signing spouse may claim some rights under the contract as a third party beneficiary you will not be able to sue that spouse to enforce the contract in a collection action.  If you get the signing spouse to sign on behalf of the non signing spouse then you can claim that that the signing spouse has authority, actual or apparent, as agent for the non signing spouse.  You'd need the contract signed twice.

      You cannot alter the contract once it's been signed without a signed consent by the other party to the contract.  So no adjustments when you get back to the office.

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Comment on Prorating revenue

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Ken,

    I, too, must agree with Justin; your newsletter is tops.  I have gained knowledge that I have been able to apply effectively, as well as, what to look out for in the alarm industry.  Thank you!

    Regarding "Prorating recurring revenue charges - Q&A" I am offering per your request (anybody out there) of what we do in our company.  We use a standard in house contract and yes, we begin our monitoring charges on the first of each month.  There are no industry regulations I know of; however, we do prorate from the date of activation for the first month for consistency in billing and contract review.  Hope this is helpful.

Regards,

Ed S.