Notice:  

New contract now available.  Standard Fire Suppression Equipment Agreement.  This contract covers Installation, Inspection, Service of Sprinkler System, Portable Extinguishers, Kitchen Hood, Smoke Detectors, Fire Pump.  Order this standard contract form at www.alarmcontracts.com

     For Commercial Fire Alarms use the Fire Alarm All in One

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comment on whether DYI hurts alarm industry from December 13, 2013

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Ken, 

these comments remind me of history lessons lost to those who thought that micro computers were toys and ipods were cute gadgets.  Alarm dealers have to watch where OUR cheese moves! Sit back complacently and you are setting yourself up for ruin. SimpliSafe is a fast growing company that even a child could install.

Jim

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comment - modifying standard monitoring contract affecting valuation from

December 12, 2013

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Ken,

Monitoring agreements that have been modified are a factor in every transaction and valuation.  If the alarm company is able to use a strong contract, such as yours, and only make minor modifications, the issues may not be as bad as if the alarm company signs the customer's agreement.   In monitoring agreements there are infirmities (issues that may be worked around) and fatal flaws (issues that make the agreement worthless).   If the only modifications are to the term of the agreement and to the assignability clause, the agreeement is not as "impaired" as if the customer has made other changes.  If these agreements are a very small portion of the account base, many Buyers will accept them with the mindset that there is enough holdback to cover the small amount of cancellations that may result.  Other Buyers may accept the agreements, but ask for additional holdback to see if the customer accepts the assignment, and continues to renew over the next year. 

I realize that, especially in commercial and fire monitoring, customers may insist on these types of modifications.  Most property managers have year to year agreements with the property owners and may be willing to sign an agreement that automatically renews for a year at a time on the same date that their agreement renews.  If you sign a customer's agreement without consulting your attorney first, you do so at your own risk.  In addition to the immediate liability issues for you company, it is extremely likely that a perspective Buyer will elect not to purchase that agreement.

Mitch Reitman

S.I.C. Consulting, Inc.

Fort Worth, TX 76133

WWW.SICC.US

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comment on false alarm reduction from December 19, 2013

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Ken

Tuscon Alarm is to be recognized and congratulated for a blanket and aggressive method of FALSE ALARM REDUCTION.  I would also state that they have taken a great step towards ELIMINATING environmental and RF or transient alarms.  The shortcoming is that the USER is still the most unstable value in the equation. (But I will bet they also have an equally aggressive customer support and training program in place.) In fire if cross zoning is used to minimize false alarms ADDITIONAL detectors may be required to meed code requirements of NFPA72.  For burglary one must also use caution to insure that bothe devices will have the opportunity to detect an event simultaneously.

Good job and great effort. 

Joel Kent

FBN Security Co LLC

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comment on can you or should you offer to pay for sub's claims from January 9, 2014

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Ken;

I think alarm companies that offer to pay claims are trying to get out in front of a problem that THEY created.  Years ago, their technicians were top notch.  Today, I would say "Not so much."  I think that they have been installing sub-standard systems and are getting out from underneath what could be a landslide of lawsuits.  You can bet your butt, that if you have them install one of their bottom shelf crap systems and then suffer a loss, you are going to be pissed off.  By offering you $500 or even $1,000.00, you are signing off on agreeing to not go after them for more money.  I think they realized the depth of their dilemma after that Arizona (I think or maybe California) where the burglar broke into the house by breaking the glass on a sliding door and stepped through the hole.  They then proceeded to slit the throat of the man and his wife while they lay sleeping in bed.  Their children were awarded like 8 million dollars.)  

Well anymore, now I insist on installing a glass break detector on any system that has a sliding glass door, and if the customer doesn't want it, they sign off on it or I don't do the job.  And that is after explaining the Arizona lawsuit.  Getting back to the companies that offer to pay claims, I think they realized that it may be cheaper to just pay out the money on the relatively few houses that get burglarized with one of their systems, as opposed to going  back to how many thousands of installs and add equipment for FREE.  At any rate, I feel that I at least benefited from their misfortune in that Arizona suit and it in turn benefits my customers as well.

John from NJ

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