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 white list ken@kirschenbaumesq.com ******************************* How new owner assumes contract / Comment on subcontractors December 26, 2019 ****************************** How new owner assumes contract ******************************* Ken, If we allow the new subscriber to assume the contract as you state below, is there a special form they should fill out so we have this in writing? Thank you, Roman ************************** Response *************************** A couple of issues; you don’t have to permit a new owner to assume the old contract; it’s not assignable by the subscriber, assuming you are using the Standard All in One Agreements. But you can permit the assignment. The act of assigning is performed by your existing subscriber. The new owner or assignee, has to accept the assignment, and that is accomplished with an Assumption Agreement. It should be in writing unless you want to get into a hassle later over whether the action by the new owner [allowing service or monitoring and making payments] is tantamount to assumption. So get the assumption in writing. The writing doesn’t have to be an elaborate complex document, though it certainly can be. Writing on the actual contract, or a copy, “The undersigned assumes all obligations of the subscriber” or something along those lines would be sufficient. Of course get the new owner to sign as the undersigned. You don’t need a new contract, though this would be the perfect time to get one. The old contract is going to have less time left than a new one, and signing a new one gives you the opportunity to add additional equipment and services, raising the RMR. Be sure to use an updated contract. If you’re going to the trouble of getting a new contract signed it may as well be an updated form which will have the most value for your bottom line. ************************** Comment on subcontractors from December 10, 2019 article *********************** Ken Just a note on this. General Contractors in California require workers comp insurance on Sub Contractors, if we perform work for the General Con. and use Sub Contractors. Also, California has really changed the law regarding subcontractors. They rarely accept them as sub-s any longer, and you the primary gets hit with fees, for not withholding, etc. etc. This has created a huge mess with lots of folks out here. Several friends of mine were almost forced to stop business with all the penalties, etc. California gets nastier. Keeps finding ways to generate more money to fund the illegal’s that are granted Sanctuary. More and more business are leaving the golden state, for better business friendly states. Tim *********************** Response ************************ California has taken perhaps the toughest position on subcontractors. There are a bunch of factors that can disqualify a subcontractor from being a subcontractor [and not classified as your employee – with all the benefits and expense], but one to really watch out for is that you cannot have employees that engage in the same services as subcontractors you want to engage [in CA]. So if you have installation or service crew you can’t use subcontractors who also do that work; they need to be treated as employees. Sure you might get away with it if it’s really an occasional engagement [and no one gets hurt], but you won’t get away with it if it’s on a regular basis and you get a workers comp audit, and you will. If you use subcontractors be sure to use our Subcontract Agreement. For all employees, use our Employment Agreement. *********************** To order up to date Standard Form Alarm / Security / Fire and related forms, click here:www.alarmcontracts.com ************************* CONCIERGE LAWYER SERVICE FOR THE ALARM INDUSTRY PROGRAM 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. *********************** NOTICE: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles *********************** THE ALARM EXCHANGE
This area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. There is no charge to post a listing here.Include your contact information, phone, email and web site. If you would like to submit a post, please send an email to ken@kirschenbaumesq.com. To create a reciprocal link to our website, click here. ************************************************ Getting on our Email List / Email 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. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** 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
