February 15, 2012
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Question
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Ken,
We have been dealing with a management company who has changed their name several times, had several different people follow up on the bills for a UL fire alarm account and is now very delinquent. UL certificates are issued for a period of five years, as I'm sure you are aware, and are for the property being monitored. We originally had the builder sign for the account when it was built as there was no association at that time. Later the association developed and hired an individual company to manage their books. At that time we informed them the certificate goes with the property we monitor, not the change in management. They have been trying to play lets make a deal, offered us $500.00 for a past due bill of over $1700.00. They have paid individual service calls but refuse to pay for monitoring services rendered.. What actions can we take as they would not sign a new contract when the original five year term was up last year?
Gordy Neumann, President
Always Secure Alarm Protection, Inc.
St Paul, Minnesota
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Answer
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I think your problem is more than the past due balance. Sounds like you're continuing to provide fire alarm service without a contract with the end user. That could prove to be more of an issue than a $1200 hold up.
You installed a fire alarm for the builder and the builder probably signed a Sales Contract [you don't indicate if you are using the Standard Form Contracts, so I am not sure what protection you actually have]. You obviously completed the job because you issued a UL Certificate. That certificate is not a contract and not only doesn't offer any protection, contractual or otherwise, to the alarm company, and in fact imposes the duties and obligations required by UL to issue the certificate. UL listed accounts must meet the standards established by the rating agency, Underwriters Laboratories.
Your relationship with a commercial fire alarm subscriber should include not only the installation, but Service, Monitoring and Inspection. These components are all covered by the Fire All In One.
The expiration of the UL Certificate is not the expiration of a contract term. Seems like you don't have a contract to expire. You need to get a contract covering the services you are provided, most likely including service, inspection and monitoring.
If your subscriber won't sign a contract I suggest you give up the account unless your insurance coverage is enough to make you comfortable. Make sure your insurance carrier is going to provide coverage when it finds out you don't have a contract.