Question
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Dear Ken,
Could you please point me in the right direction with the type of alarm contracts you recommend for my company? Here is my situation:
New to the alarm business. We will be installing, selling and servicing residential, governmental and commercial burglary, fire and medical alarms. We will also be offering a remote video monitoring services and security guard alarm response services. We will be subcontracting out the alarm, camera and central station monitoring.
What do I need?
Thank you,
J. W. S.
Maryland
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Answer
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Welcome to the alarm business and it seems like you're off to a great and hopefully lucrative business career. I want to refocus your thinking, just slightly. New to the alarm business means you may be new to the business of RMR. Recurring Monthly Revenue. That's the new business you're in. Selling contracts that provide for continuous RMR. Learn your trade, be professional. You have a lot to learn. Electronic integration systems are being introduced all the time as technology rapidly changes. Integration of fire, intrusion, cameras, audio, lighting, guards, and who knows what's next, isn't easy to keep up with.
Then, if you're also new to business, learning how to run a business isn't easy. Think taxes are all you need to worry about; withholding, income, sales? There are OSHA regulations, employee laws, credit applications, contracts with central stations, radio and cellular services, guard services, alarm license requirements.
Understanding the above gets you ready to do your business, which is selling RMR contracts, and then of course being able to perform your end of the bargain. All of the Standard Alarm Contracts are designed to promote RMR, and at the same time protect you from claims. Building equity and helping you ensure that you hang on to that equity; that's what the proper contracts are for. Thinking about that now rather than 10 years from now is the right start.
There are two basic Standard Forms. For residential subscribers you should be using the All in One. This combines sale and installation, service and monitoring. The latest reversion includes remote access by the subscriber to arm and disarm the system, control the fully integrated system and view cameras [and even listen to audio]. Use this with the Disclaimer Notice. The Disclaimer Notice is an acknowledgment from the subscriber that you've offered or made the subscriber aware of other equipment and services, recommend POTS over VoIP, that you're not responsible for permit and false alarm charges, and deals with deficiencies in the system when you're doing a take over of a system you didn't install.
The second form you need, if you intend to do commercial fire, is the Fire All in One. This combines sales and installation, service, inspection and monitoring. You would also use the Disclaimer Notice.
If you look at the list of other Standard Form Contracts you will see many, and that's because the services you offer may be just as varied. For example, you mention that you'll be offering PERS. Well, you'll need a separate contract for that.
If you're not selling an intrusion system but a camera system that is accessed by the subscriber with no central station monitoring, then you'll want the Subscriber Enabled Monitoring Service Contract [which is for full remote access by the subscriber] or you may use the Remote Video Monitoring contract, which is for remote viewing of cameras only.
If you have questions which contracts to use I am always available and you can also call our Contract Administrator, Eileen Wagda at 516 747 6700 ext 312.
If you have licensing questions contact me or Jennifer Kirschenbaum, Esq at 516 747 6700 ext 302.
General business questions? You'll find that this forum responds to all kinds of issues, and you can also contact me off line or confidentially.