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subcontractor issues / video monitoring April 19, 2018

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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subcontractor issues / video monitoring
April 19, 2018
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subcontractor issues
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Ken,
    My first questions is regarding Sub-Contractors; as you know working with subcontractors has become a very big part of our industry. I’m sure that the majority of the wire pullers are not licensed and that is the problem. If the sub does work for the licensed company and does not have a NYS Alarm License, who is responsible??   Am I liable as the qualifier??
    Second question; does a master electrician installing Fire Alarms need a NYS Alarm License or does their license cover that? I understand they can fill out a waiver, does that exempt them from the NYS Alarm license?
    Lastly we will need your guidance very shortly on new contracts. We are processing an All in One proposal which we would like to incorporate the contract verbiage into. Is there any of your contracts that would be generic enough with all of the clauses that you would suggest using.
Thanks,
Mike
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Response
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    Though this is from a NY license holder the principles are similar in all licensed jurisdictions.  A licensed company cannot engage an unlicensed subcontractor to perform the work without making that subcontractor an employee and registering that employee the same as all other employees.  Without question the licensed company would be liable for the work of the subcontractor.  This is so not just from a licensing standpoint, but a licensed contractor engaging an unlicensed subcontractor, who makes mistakes in the installation, would likely be liable for negligent hiring as well as breach of the original contract.
    If you engage a subcontractor you must make certain that the subcontractor has the required license and that all employees of the subcontractor have been registered, certified or whatever process is required in the jurisdiction.  Additionally, make sure the subcontractor has insurance, all the insurance you hopefully carry, which includes Workers Comp and liability with errors and omission.  It's a good idea to use our Standard Subcontractor Agreement.  It lays out the relationship and responsibilities. 
    In NY a master electrician must register with the Department of State as an Alarm Installer and must also comply with the documentation required for employees.  The master electrician waives in, but must register.
    The 
All in One Agreements are complete documents, so I am not sure what you want to "incorporate".  The actual description of equipment and services will be detailed in the Schedule of Equipment and Services, and that schedule can be your proposal [which should not itself be a binding contract but merely a detailed description of the equipment and services, pricing and any other terms that you have agreed to with the subscriber.  The terms and conditions in the All in One are carefully drafted and you should be very cautious making changes.  I am available to assist, and you should avail yourself of my services when in doubt.  Contact our Contract Administrator Eileen Wagda to engage my services.  Her number is 516 747 6700 x 312.  Fees run from "no charge" [I know that's your preference] to several hundred depending on how much time is involved.
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video monitoring
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Ken
    We are in desperate need of a new remote camera monitoring agreement for our dealer program. We are now offering third party monitoring services to all of our dealers as we will be monitoring all of their clients security cameras. Our dealer program will involve our dealer selling the remote camera monitoring services to their clients and utilizing us as a third party monitoring provider. We would like to use your expertise and ask for your help on this matter. We're looking to start the dealer program as soon as possible. 
name withheld
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Response
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    As a dealer program you will need an Agreement that details the program and the relationships, the terms of which will depend on your program.  If you are going to be a wholesale central station specializing on video monitoring then you need two agreements.
    The 
Dealer Agreement which is between you and the dealer
    A 
three party agreement which is between you, the dealer and the subscriber.  If the Dealer uses our Standard Form Agreement[either residential All in One or commercial All in One] then you don't need the three party agreement because the Dealer's All in One will cover you, the central station.
    There are a handful of central stations offering video monitoring and it's a good idea, as a dealer, to check these central stations out.  Video monitoring adds additional responsibilities for an operator, and this requires additional training and response policies.  The 
Standard Form Agreements are updated to include video monitoring.  If you're using a subscriber contract that was drafted before video monitoring was available then obviously it's time for an upgrade [or it's time for you to find another way to make a living or retire].  Update your contracts here:  www.alarmcontracts.com
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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