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Contract Updates and Alarm.com
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Ken
Quick question,
We would like to update our All in One contract. Is there any coverage for the emerging automation offerings? We had a line inserted in out last version stipulating acceptance of the alarm.com terms and conditions. Is this sufficient? We would also like a new completion certificate. Do you have service sheets as well if does the completion cover it?
Thanks for your help!
Jon
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Answer
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The most current All in One covers all of the automation and other security services [Commercial All in One and Residential All in One]. Upon request we will add specific services of Alarm.com, however, I am not a fan of Alarm.com's required contract verbiage so I won't include it in the Standard Form Contracts. I also don't think that referencing the Alarm.com Terms in your contract is sufficient. If you are intent on using Alarm.com then, upon request, we will include the specific Alarm.com services, indicate that the Alarm.com rider is attached, and require the subscriber to sign the 2 page Alarm.com Terms. You better hope the subscriber doesn't read those terms, and when the subscriber wants to know why they are different than yours I recommend a "shrug of the shoulder's response".
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Re: Alarm Co. Who Did The Job Before Getting A Signed Contract From The March 14 2014 Article
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Ken
With regard to the March 14 questions and answers........... If you don't have a signed agreement prior to installation, you don't have an agreement........you take the risk for everything. ...... period.
John W. Yusza, Jr
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Ken
Thank you.
I emailed earlier this month about monitoring someone without having a contract. In an effort to update all our files we, and the subscriber both could not produce the original contract. The Changes they requested on your agreement included almost every paragraph.
We continue to do our job, they pay us, but we don’t have an agreement. What is my liability. I like the horse example as we are always trying to better our procedures. This example keeps me up at night.
How exposed am I? What can happen? I am still perplexed you do not have more horror stories about NOT having an agreement in place and a little company getting wiped out because of it.
Thank you.
Tim Weldon
Pointe Alarm
MI
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Response
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A lot of things can go wrong when you don't have a proper contract in place. You could find it hard to obtain Errors and Omissions Insurance. You will not be able to sell or finance your company assets for nearly as much as you would if you had proper contracts in place. You could get sued for a loss, exceeding your insurance coverage, assuming you have insurance coverage. The cost of defending a lawsuit could run into the hundreds of thousands of dollars. Damages claimed can run into the millions. If the defense costs don't bankrupt an adverse judgment, exceeding your insurance coverage, will. If you were on the job you may be sued also. If not on the job then if you are a corporate entity you aren't personally on the hook for your employee- generally - though you could be sued for negligent hiring. If a judgment is entered against your corporation the judgment creditor will have a right to scrutinize your books and records to see if you took out money that you shouldn't have.
Bottom line. it's crazy to operate a security or fire alarm business, or suppression business, without a proper written contract. You're not going to get a better contract than the Standard Form Contracts at www.alarmcontracts.com, and you're going to pay a lot more somewhere else.
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Question: contract on Indian reservation
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Ken,
What is your advice as far as servicing customers who live on Native American Reservations? Would I be subject to their laws? Would your contracts still afford any protection? I have a decent size reservation in my service area and am leaning toward NOT offering my services to anyone living on the reservation (due to concern over legal issues as well as the fact that emergency services must get permission to respond onto the reservation) but I wanted to check with you first.
Thanks,
Rich Manfredi, President
Manfredi Systems LLC
President of Central New York Alarm Association
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Answer
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You have to find out if the reservation has agreed to local law and courts. If not, then you will be resolving dispute according to Indian law and jurisdiction. Seems like it's as bad as dealing with a foreign country or diplomat.
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Question on permit revocation
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Ken,
I use your up to date contracts and am a daily reader of your newsletter. Thanks for your service to our industry!
If a municipality requires an alarm permit in order for a user to have an alarm installed and or subscribe to monitoring services, and that permit is revoked for some reason by the municipality (not caused by the alarm company or their monitoring provider), what effect if any would this have on the enforceability of your contracts? Is this specifically addressed within the contract, not specifically addressed and not an issue, or not specifically addressed and possibly an issue?
Thanks,
Rich Manfredi, President
Central New York Alarm Association
Owner – Manfredi Systems LLC
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Answer
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The Standard Form Contract does address what happens if police or fire refuse to respond to the alarm - the subscriber is nevertheless responsible to make the monthly contract payment. If a permit is revoked because the alarm fails to comply with code or AHJ, and the contract provided for compliance, then the contract is suspect - probably the subscriber could justify refusing to pay. Failure to comply with code or AHJ rules does not create liability unless the statute provides as much, and I can't recollect one that does. But the failure to comply with law is a factor to be considered when assessing liability.
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TO SUBMIT QUESTIONS OR COMMENTS REPLY TO THIS EMAIL OR EMAIL Ken@Kirschenbaumesq.com. Most comments and questions get circulated.
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Speaking Engagements
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Sonitrol Verified Electronic Security. Annual convention March 22, 2014 at The Worthington Renaissance Fort Worth Hotel in Fort Worth, Texas.
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SentryNet's 19th Annual Dealer Conference. April 22 - 24, 2014 at Harrah's in Tunica, MS. register at http://www.sentrycon.us or call Peggy at 800-932-3304 for more information. www.sentrynet.com
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Northeast Security & Systems Contractors Expo. Thursday, May 22, 2014 10 am to 5 PM at Royal Plaza Trade Center, Marlborough, MA. registration https://www.expotracshows.com/neacc/2014/ Presentation on Alarm Law issues and Q&A will be at 2 PM. For more info contact Gary Spaulding, NEACC President
207-384-2420 gary@spauldingsecurity.com
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Alabama Alarm Association. AAA's Fall Meeting and Trade Show - October 21, 2014 from 3 to 5 PM at DoubleTree Hotel 808 South 20th Street Birmingham, AL 35205 for more info contact AAA Executive Director: director@alabamaalarm.org (205) 933-9000
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Electronic Security Summit for 2014. October 22-24, 2014 at the landmark Broadmoor Hotel. Colorado Springs, CO. For more information contact Alexander J. Quirin, CEO & Managing Partner, Advisory Summit Providers, LLC., (786) 999-9738 alex.quirin@aspsummits.com www.aspsummits.com
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