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master agreement for PERS and other agreements / excessive alarms / Holding license December 23, 2017

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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master agreement for PERS and other agreements / excessive alarms / Holding license
 December 23, 2017
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master agreement for PERS and other agreements
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Ken:
    I have purchased and use your contracts.  Regarding the PERS contract, I have a situation where a healthcare agency customer sends me authorizations to install a PERS system for their client; I bill the agency for the installation and monitoring.  I use your contract, having the sub sign (cancellation forms included) and then have an authorized signature from the agency sign in the lower left guarantee section. The problem is I cannot enter the dollar amounts where required, as I bill the agency lower, obviously, than what they bill to whatever governmental/entitlement program applies to their situation.
    Do I leave the amount blank and fill in upon sending the contract for signature to the agency?  The contract should be complete in my opinion because the subscriber is ultimately responsible for the care of my equipment and performance of the agreement although their ability to do so is another matter.
    OR
    Do I need a master agreement with the agency – possibly by modifying  the PERS contract I already have?
    I’ve met and spoken with you a few  times and yet must say it again, as many others do also, thank you for your dedication to and hard efforts for our industry.
Respectfully yours,
Vince
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Response
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    This is a perfect set-up for using the Master Agreement.  We add "master agreement" language to the Standard Form Agreement and also provide a Master Agreement Rider.  The Master Agreement, in your case, is signed by the agency.  That agreement will deal with the money - and everything else that needs dealing with to protect you.          The Master Agreement specifies how you are to be authorized to provide your services to multiple subscribers covered by the Master Agreement [called the Rider for multiple locations].  Typically you will get a purchase order, email or some notice to provide the service to the subscriber.  The Master Agreement also works for a subscriber who wants you to provide services to multiple locations, existing or in future.  
    Getting back to your scenario, The Master Agreement is signed once with the agency.  Then you will want each subscriber - end user - to sign your PERS agreement.  Instead of inserting what's to be paid you will simply put "paid by agency".  You still need the end user to sign an agreement because you need to have the protection afforded by the agreement.  Don't be fooled thinking that the agency is your only customer.  That's who pays you, but the service is being provided to an end user and you want that end user to agreement to your contractual terms.
    There is a way to avoid having each end user sign an agreement [I do not recommend this instead of getting every end user to sign a contract].  The agency, or whoever is signing your Master Agreement, could agree to include all of the terms of your contract in the agency's agreement with the end user.  By incorporating your agreement in its agreement the end user is agreeing to your terms.  Problem with this method is that must agencies will not agree to incorporate your terms, and you may not be able to ascertain that the end user has in fact signed anything with the agency that incorporated your terms.
    This scenario is the same for other situations, such as a landlord who provides alarm services to tenants in the building; a developer who builds homes in a community, etc.
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comments on excessive signals from December 22, 2017 article
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Ken
    Response to Excessive Signals:
    Excessive Signals during testing should NOT have to be processed by the Central Station.  When testing, the account should be placed in a TEST Status so that signals are logged only and do not require operator intervention. A panel’s event log in the panel hold only so many signals before it starts to write over the events anyway.   It is easier to just let the CS handle it.
    This keeps a clean record of everything tested and the time signals were received. 
    Excessive Signals can also be costly.  Some Central Stations have clauses in their contract to charge for excessive signals.  If you know that you are bringing on an account that will have a large number of signals, it is better to negotiate a flat rate before you put the account on line.  Hospitals, warehouses, large churches…etc all fall under this umbrella. 
  Signed,
Mary from Memphis
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    What a dumb question on central station activity when referred to the central station signal traffic when testing is being performed at the site.   The signals are logged automatically if the fire alarm control is not too old but there can be limits based upon the size of the history log.  When you, the central station took that dealer’s  hospital account you had to know the ramifications and decided at that time whether to take it or not as well as to charge more or not based upon this.   The question here is if the dealer has to send in all those signals and confirm such as a requirement?   With many controls there is a switch that would prevent this from happening (signals from being sent) that is usually called “City Tie” or similar languish for a switch to do this and if properly programmed it can prevent sending signals if operated.   For all those who intend to state this is not allowed because it can be left off don’t bother.   There is a visual and audible indication when it is operated to show such.   This central station should just tell the dealer to move to another central station if they need to ask this question here.  
name withheld on request
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comment on qualifying for company
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    On the question having to do with lending your license, call it what you may but it is more commonly known as whoring out your license and that is what it is.   Why do all these firms need others to cover for them instead of getting their own licenses?   Don’t tell me that that got a national chain and it does not pay to do so for one location in one state.   Allowing and doing this undermines all those who do work in that state with a license and encourages carpet baggers to come in and compete in a market that they do not have a license to do so.   Do attorneys engage in this a practice as well or even allowed?   Yes Ken, I know that you are going to say this is OK and you have an agreement for such, so call it what you want to but it is still whoring out your license.   How desperate does one have to be to do this?
    Yours truly,
What a way to end the year!
name withheld on request
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Response
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    You make a number of assumptions, and they are not necessarily correct.  You may not have noticed but many alarm companies are owned by business people.  They don't go on sale calls, don't run wire, etc, all the things that many alarm companies owners did when getting started and even now.  But many of today's owners are not technical in the alarm industry.  Another change is that the alarm industry, particularly the DIY market, lends itself to nationwide operations.  It's not easy to get licensed in every jurisdiction and stay licensed; it's not even practical.
    There is nothing wrong with holding a license for a company owned by another.  The Qualifier Agreement clearly spells out each party's responsibilities.
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Christmas gift
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                Ron still has books left - get yours today!! Thanks to Ron Davis’ generosity we are offering his smash hit, must have, book, The Start of the DealIt’s free and no annoying promotions.  You just have to click here and fill out the form.  So, Click Here   I told Ron I'd sell out his First Edition, so EVERYONE should get the gift book right now.  This offer is available until December 25, 2017 and Ron promises to personalize and sign each book.  
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THE ALARM EXCHANGE

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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
516 747 6700
www.KirschenbaumEsq.com