QUESTION:
Ken,
Here is my situation; I’m a fire alarm contractor in central Florida looking to take on some fire alarm installations for a larger alarm contractor in the area. The larger alarm contractor sells, designs, services and monitors the job. They are asking us to pull the permit and install the equipment they provide to us, per their design and specs.
My question is where does the liability go once the job is complete, them, us or both? If I’m pulling the permit under my company name and we satisfy and complete the installation, pass our inspection and satisfy the design and specs for the other alarm company. Then they turn around and pass the completed work as their own to the customer. Who is liable should the system fail? I’m concerned because in the past we have done work for them under a standard sub-contractor agreement for CCTV and burglary systems but never Fire alarm. Should we have them sign a contract releasing us from liability once we satisfy the installation contract? And if we do, should anything happen to that building and records in the county or city show we pulled the permit for the jobs are we still liable?
I look forward to your advice, Thank you.
Alex
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ANSWER:
You should be concerned about liability if you are involved with the fire alarm system. If there is a serious enough fire anyone involved will likely be brought into the lawsuit(s).
Since you are pulling the permit it's your application and your responsibility. Although the "larger alarm contractor" provided the specs and design, ultimately it is your application and you who are dealing with the AHJ.
To be prudent you need to make sure the "larger alarm company" has the subscriber sign a well drafted Fire Alarm Sales contract [which they can get at www.alarmcontracts.com] because that contract should [and mine does] not only protect the general contractor but the subcontractors.
Alternatively you should have the subscriber sign your Fire Alarm Sales contract, probably not a viable option in your situation.
If there is a loss and a lawsuit commenced then liability and damages will be apportioned among all of the players. The fact that the system was designed according to NFPA or building department requirements and approved by the AHJ will not be the end of the investigation. Installation can still have elements of negligence and if the Subscriber - Plaintiff can prove negligence then AHJ approval won't save you. Conversely, circumventing AHJ approval can bury you in the lawsuit.