Should you contract for Fire Inspection with Service by others

Should you contract for Fire Inspection with Service by others?

Question:

Ken,

Thanks for your quick response. I agree a service contract is the only

smart approach & we will certainly take a look at your contract. I look

forward to your remaining thoughts on one company performing the Testing

and Inspection Service and another company performing the necessary

service. It's a real hot issue with our team.

Thanks so much

Bonnie

___________________________

Answer:

Although I think it would be an unusual relationship for your

subscriber to trust you with the inspection but not the actual service or

repairs, I don't see any problem with it. The Fire Inspection Service

Contract I offer provides for recurring revenue for the Inspection only.

If service is necessary the contract provides that the subscriber has to

pay Time and Material charges, but the subscriber is not under obligation

to use you and can call in another company to provide the service. Your

obligation under the Inspection contract would not oblige you to make your

next Inspection until the next scheduled date, which may be annually.

If you are on the other side of the issue, the one performing the

service and not the scheduled inspections, then your responsibility is to

make the repairs, check the communication, get your completion certificate

[certifying that the system is working] and leave. Make sure you are

providing service pursuant to the Service Contract, which has two options,

recurring revenue or per call service.

If you are under contract to provide the Inspections and your

subscriber also wants a contract for service including service and

material, then you use the Fire Inspection / Service Contract, and the

separate Service Contract.

What happens if the is a loss after your inspection and after the

service provided by another company? The answer will be fact sensitive.

If your Inspection and repair recommendation did not pick up the real

defect then you may face exposure, though more than likely if a repair has

been made after your inspection then the repairing company will have tested

the system. The repairing company, the last company there, has the greater

exposure. As the Inspection company you would have to miss a problem that

was also not discoverable by the repair company. It can be confusing and

both companies are likely to be sued unless the cause of the loss is easily

found.

In conclusion, I would not refuse the contractual relationship for just

Inspection or just service on a fire alarm if your only consideration is

potential liability.

Question:

Ken,Thanks for your quick response. I agree a service contract is the only smart approach & we will certainly take a look at your contract. I lookforward to your remaining thoughts on one company performing the Testingand Inspection Service and another company performing the necessaryservice. It's a real hot issue with our team.

Thanks so much

Bonnie

___________________________

Answer:

Although I think it would be an unusual relationship for yoursubscriber to trust you with the inspection but not the actual service orrepairs, I don't see any problem with it. The Fire Inspection ServiceContract I offer provides for recurring revenue for the Inspection only.If service is necessary the contract provides that the subscriber has topay Time and Material charges, but the subscriber is not under obligationto use you and can call in another company to provide the service. Yourobligation under the Inspection contract would not oblige you to make yournext Inspection until the next scheduled date, which may be annually.If you are on the other side of the issue, the one performing theservice and not the scheduled inspections, then your responsibility is tomake the repairs, check the communication, get your completion certificate[certifying that the system is working] and leave. Make sure you areproviding service pursuant to the Service Contract, which has two options,recurring revenue or per call service.If you are under contract to provide the Inspections and yoursubscriber also wants a contract for service including service andmaterial, then you use the Fire Inspection / Service Contract, and theseparate Service Contract. What happens if the is a loss after your inspection and after theservice provided by another company? The answer will be fact sensitive.If your Inspection and repair recommendation did not pick up the realdefect then you may face exposure, though more than likely if a repair hasbeen made after your inspection then the repairing company will have testedthe system. The repairing company, the last company there, has the greaterexposure. As the Inspection company you would have to miss a problem thatwas also not discoverable by the repair company. It can be confusing andboth companies are likely to be sued unless the cause of the loss is easilyfound.In conclusion, I would not refuse the contractual relationship for justInspection or just service on a fire alarm if your only consideration ispotential liability.