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PHASE INSTALLATION

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Ken
    I have a client that wants to do the installation of their commercial alarm system in phases due to cost constraints.  How should this be structured when doing the contract?   They want to install the key components and necessary sensors of the alarm system first then add on additional keypads and sensors at later dates. They are also considering adding on a video verification system like videofied within
the next 2-3 months.  We will also be doing a camera system at the same time.
    My question is does a completely new contract with monitoring agreement have to be done every time they choose to add a couple sensors here and there?   I figured that if we're integrating a videofied system into their alarm system at a later date that a new monitoring agreement will be
needed to reflect the addition of the videofied monitoring.
    Thanks for all the helpful info.
Brice
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RESPONSE
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    Use one contract, the Standard Commercial All in One.  Your Schedule of Equipment and Services [or your proposal if that's what you use in place of the Schedule] will specify the phases and the cost and payments.  Be sure to stay ahead of this subscriber - way ahead.  If a phase gets canceled you will want to be paid for your work and for anticipated profit on the job.  Be sure to provide in the contract rider that the system is not to be operational until you intend it to be operational.  
    If the job is complete and operational and the subscriber wants to add new equipment, such as Videofied, you are better off getting a new contract signed, again the Commercial All in One because you will be selling new equipment, adding new RMR, and may as well get the RMR items updated.  If new equipment is requested while you're still installing the main system then you can easily use the Supplemental Rider for the add on.
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QUESTION RE: PERSONAL GUARANTEE
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Ken
    Am I creating a legal hole if a customer doesn't sign the personal guarantee, but does sign the main line of the Commercial All in One Agreement?  
    Payment isn't a concern in this case so I'm considering letting it slide if it's not a big deal
Chad
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Response
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    The provision for a personal guarantee on the Commercial All in One and the Commercial Fire All in One is not critical to render the agreement complete, binding and enforceable.  A corporate entity may be less likely to default in payment if the owner is also a guarantor, but if a business is going down it often takes the owner with it, so the guarantee certainly doesn't "guarantee" payment.  In most cases if you can get the guarantee then get it.
    When you are dealing with a start up entity or one you know to be in financial trouble, and you are fronting the cost of equipment, material and labor, you should be more concerned with the subscriber's financial well being.  You need that subscriber to pay you well into the term of the agreement to recoup your investment.  In that situation a meaningful guarantee is a better plan, and by meaningful I mean that the guarantor is financially sound and won't be able to dodge responsibility if push comes to shove.  
    If your subscriber isn't particularly financially sound and the guarantor isn't much better off, you may want to consider taking advantage of the UCC provision in the All in One Agreements which grants you a security interest in certain property, makes you a secured creditor, and puts you in a better position under certain circumstances.
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PIONEERS OF THE NEW YORK ALARM INDUSTRY - YOU MAY WANT TO COORDINATE THIS WITH YOUR NEXT TRIP TO NYC
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The Second... Pioneers of the New York Alarm Industry

A DINNER FOR ALL MEMBERS OF THE ALARM INDUSTRY NOT JUST MBFAA MEMBERS
Thursday night, October 29th, 2015
at Terrace On The Park, Flushing Meadows Park, Queens, NY.
with Master of Ceremonies, Ron Davis

Every profession, every industry, had its beginnings somewhere, sometime, and by someone. We call these people pioneers. The pioneers of the alarm industry date back to the 1850’s. While the pioneers of the 1850’s are not around any longer and we can only read about them, the pioneers of the modern (post World War II) era alarm industry in metropolitan New York are mostly alive and well.

The Metropolitan Burglar and Fire Alarm Association of New York, Inc. (MBFAA) is bringing together these pioneers of the metropolitan New York area alarm industry* at an alarm industry dinner in the New York City area on Thursday night, October 29, 2015 - at Terrace On The Park, Flushing Meadows Park, Queens, NY.

Why? Because the MBFAA is New York’s oldest incorporated alarm association with some of the oldest companies and oldest members in the industry. The MBFAA is bringing together the individuals, alarm companies, manufacturers, distributors, and contract central stations that have been in the industry for at least 35 years, to discuss and reminisce about their roots and the beginnings of their involvement in our industry. These discussions and reminiscing will be documented in pictures, and the written word to be forever cherished by those attending and archived for future generations.  

YOU GOTTA BE THERE!  PLEASE OPEN AND READ THESE FILES: 

Pioneers Letter Oct 29 2015_01E.pdf  

AWARDS ELIGIBILITY FORM OCT 29 2015_01B.pdf

SECOND PIONEERS DINNER EVENT PAYMENT FORM OCTOBER 29, 2015_01B.pdf

Alan Glasser, Executive Director

METROPOLITAN BURGLAR & FIRE ALARM ASSOCIATION OF NEW YORK, INC.
PO Box 54, Brooklyn, New York 11204-0054
(718) 894-6712 o7 eFax (718) 228-7940
mbfaa.ny@gmail.com   www.mbfaa.com
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