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QUESTION:  INSPECTION, SERVICE AND MONITORING ISSUES
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Ken,
    We have used your contracts for some time now and they have benefited us greatly.  We have come onto a situation that requires advice.  We were recently contracted to provide inspection/service work for a property management group (25 buildings) of which some were proprietary.  More specifically we inspected one building with a proprietary panel that was found inoperable, out of warranty,  and required replacement.  
    My question is two part, 1.  Is the client still obligated to honor the monitoring contract now that the panel is defunct?, and 2. If so, is the proprietary distributor required to provide the receiver numbers and account number to program the new non-proprietary panel to their monitoring station? 
     We have been at a standstill with receiving a response from the proprietary company after the second portion of this question was posed them by the management group.  Please advise.
RL
 Austin, TX
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RESPONSE
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    There is a lot of information omitted from your question which prevents a clear straight answer.  I guess it really doesn't matter if this is fire or intrusion or other system because your inspection and service obligations would be the same, except with fire it's the AHJ who will decide what replacement panel you'll use.  
    You entered into an inspection and service agreement, and you also have a monitoring agreement in place.  [hopefully you have the Commercial All in One that you are using].  Let's break down what you agreed to do and how you have to do it:

  •     Inspection:  You agreed to inspect the system and report your findings.  No repair service and no monitoring is required under this duty.
  •     Repair:  You agreed to repair the equipment on request, either under RMR or per call.  Let's assume its RMR, which means you get a monthly fee and you have agreed to provide necessary repair work, labor and material.  However, you do not have to repair obsolete equipment which is non repairable.  The out of warranty has nothing to do with your repair obligation.  
  •     Monitoring:  The monitoring would normally be independent of the other duties unless you agreed to provide repairs and failed in your duty, in which case monitoring could not be performed and the subscriber would be excused from paying for monitoring until the system is fixed.  If there is no repair obligation, either because you have no repair duty or the needed repair is outside your repair duty, then the subscriber remains responsible for paying monitoring charges even if you can't monitor the system.  

    Apparently you did not install the equipment.  Whether the installing company is obligated to provide receiver numbers or offer any other assistance depends on its contractual arrangement with the subscriber.  Was the entire system sold?  Did the other alarm company use the Standard Form Agreement which specifically reserved intellectual property rights, including codes and passwords?  I cannot opine whether the other alarm company is required to provide any information.  Some states do require release of passcodes, particularly when the subscriber has fulfilled its contractual obligations.
    You may need to replace the panel and perform the programming.  Should be at the subscriber's expense, but I am not clear on what you provided in your agreement with the subscriber.  This was a take over of a system from another alarm company.  Did you use the Disclaimer Notice, and if so, what did you provide on your takeover inspection and survey?  You should have noted on take over that the system needed repairs and that the subscriber needed to pay for them.  Once you take over a system, it's yours to service if that's what you agreed to do.  
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DIY AND MONITORING
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 Ken,
    I am a long time customer and purchaser of your contracts,  fire and intrusion.  I am giving serious thought to offering a DIY solution with professional monitoring included.  The product I am considering is Zero wire by Interlogix or the 2Gig. I assume you have a contract written for this.  If so can you enlighten me.
Thanks so much,
Respectfully,
WH 
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RESPONSE
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    Hopefully you read yesterday's article regarding LiveWatch's success in selling to Monitronics.  One day that could be you selling.  Get the nationwide DIY agreement by contacting our Contract Administrator, Eileen Wagda at 516 747 6700 x 312.  Warning:  it's not inexpensive, though a lot more than you'd have to pay someone else to get it wrong.
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Correction On 67 Million Dollar Purchase
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     Yesterday's article was proof positive that I am not that great at math.  I said the acquisition would take 2.6 years to break even, but the math is that it will take over 6 years to break even, and that does not factor in attrition.  Without new growth, which comes with its own cost, my guess is that it will take over 10 years to break even.
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