KIRSCHENBAUM & KIRSCHENBAUM, P.C. ATTORNEYS AT LAW
200 Garden City Plaza
Garden City,  New York 11530
516-747-6700

What contracts does the typical alarm company need?
  
       Most alarm companies install, monitor and service various types of alarm
systems.  Subscribers are residential and commercial.  The usual transaction is
sell to residential and lease to commercial subscribers.
       Home owners will want to own the equipment, not lease it.  For
residential transactions you will need a sales contract, monitoring contract
and service contract.
       The sales contract covers the design, installation and warranty work.
       The monitoring contract covers monitoring service and service of the
communication software.  As pointed out in numerous articles, this contract is
not the same as the one provided by your Central Station.  This is your
monitoring contract with your subscriber. It details your responsibility and
relationship with the subscriber, and it is the contract that you will rely on
if sued, if you have to sue the subscriber, or if you sell you business or
subscriber accounts.
       The service contract covers you for service work beyond the warranty
work.  Keep in mind that if your subscriber suffers a loss and you have
performed any service, unless the cause of the loss is known, you are likely to
be sued for design, installation, monitoring and service of the system.  Only
the service contract will cover you for service.  The service contract provides
for either periodic payments by the subscriber or per call payments, so that
you and the subscriber can decide which method you prefer.  Also, when you sell
your subscriber accounts only the periodic payment contracts will add value to
your business.
       The residential package is 3 contracts, and they are separate.  Those of
you who are reluctant to have separate contracts will appreciate the separation
when you see that separate contracts are easier to use and explain, especially
when you are not providing all 3 services, sales, monitoring and service.  I do
have an "all in one" contract but it is not front and back like all the other
contracts.  The lay out is 3 pages and I suggest that you print it in booklet
form if you insist on this contract.  (It has to be specially ordered since it
is not on the order form on my website Alarm Contracts .]
       For commercial subscribers you should be leasing, and will require the
lease contract.  Commercial customers are use to leasing and the write offs are
more advantageous.  From your perspective you need to learn how to market and
sell the commercial lease.  You will get the same amount of money on the
installation as you would on the sale, and your monthly charge will be higher.
You will also have more control over the account since you will continue to own
the equipment.  See prior articles on the best way to present the commercial
lease option to your customer.  Alarm Articles
       All contract are front and back with the hand written insertions and
signature on the front only.  All contracts will be mailed, hard copy, and
emailed to you in WordPerfect format (unless other arrangements are made).
       When you purchase the 4 basics, sales, monitoring, service (or the all
in one) and lease, all other contracts ordered at the same time are half price.



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