KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Considerations when engaging subcontractors May 29, 2025 ****************** Considerations when engaging subcontractors ****************** Ken What do we need to do to have subcontractor’s do the service work on out of state accounts. We will require the subcontractor to be licensed in the state they are doing work in, and they will sign the KK subcontractor agreement and provide us with their insurance and name us as additional insured. Sean ********************* Response ********************** Engaging subcontractors is common in the alarm industry and there are a number of things you should keep in mind. You mention important issues in your question, licensing, signing the K&K Subcontract agreement, procuring insurance and naming you as additional insured. Keep in mind that if you are licensed in your state you must also be licensed in the state where you are contracting to perform licensed activities. Licensed activities might in include selling, installing, servicing and monitoring security systems and fire alarm systems. Security systems include but are not limited to intrusion and fire alarms, cameras, audio and environmental detection devices. Even wiring might be included in the definition of alarm work and require the alarm license. If you are venturing beyond the state where you are licensed you should have K&K do a survey of all the jurisdictions you want to do business in for license and other requirements. Generally the subcontractor is going to be required to meet and comply with the same standard required of you in the contract with the customer. Be particularly careful when signing the customer's form agreement rather than your K&K form agreement. The customer's form agreement will require insurance, from you and your subcontractors, and require the owner and often others to be named as additional insureds. Be mindful that your central station will not name you or your customer as an additional insured, so don't agree to that in your main contract with the customer. There are suitable ways to modify the customer's contract and you will need proper counsel to navigate those changes. The K&K Concierge Program includes as one of its benefits a free half hour per month for contract review and negotiations. To be fair to your subcontractors you should keep in mind that they depend on your contract with the customer for whatever contractual protection they might have. Since they have no contract with the end users the will be subject to ordinary rules of negligence leaving them wide open to claims that they are to blame if the system does not "prevent" a loss. A subcontractor who thinks it can maintain anonymity is in for a big surprise if there is a law suit because whether the hiring company wants to or not it will have to reveal the information for the subcontractor. The K&K Standard Form Agreements extend their contractual protection to the subcontractors and subcontractors should and do rely on that protection. An issue that comes up a lot is whether you should be responsible for the negligence of your subcontractor. Unless you assume that responsibility in your customer contract the answer is that you are not responsible for the subcontractor's negligence. You do remain liable for your own negligence, perhaps, in selecting that subcontractor and for breach of contract, because you are the one who agreed to perform the work in the first place. Many subcontractors are listed on The Alarm Exchange, and many companies looking for subcontractors is also listed. ******************** STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth *********************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477 ************************* Getting on our email list / Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. ************************** 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
