What happens when you underestimate the job / Register for Webinars September 23, 2023

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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What happens when you underestimate the job
/ Register for Webinars
September 23, 2023

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What happens when you underestimate the job

Ken,
          We have been thinking about how best to ask for extra hours when a job goes longer than anticipated. We want to get paid for the extra hours.
          We had written that "the quote includes 100 hours and we will give you 5 hours at no additional cost. If it exceeds 105 hours, you agree to pay $120/hour."
          Any thoughts?
AJ

Response

          The first problem is that while you have this in your “quote”, which I assume to be your proposal, you need it in your agreement with the subscriber.  I know you use the Kirschenbaum All in One agreements, so I know that you use the Schedule of Equipment and Services.  Since most of you use proposals and some of you simply put “see proposal” on your Schedule of Equipment and Services, I just want to be clear that your “deal” with the customer is found in the contract, not proposal.  Yes, you can incorporate the proposal in the contract; then it’s in the contract.
          There are two common ways to make you can get paid for your services, a fixed amount or on a Time and Material deal.  The T&M deal isn’t common in the alarm industry, so you’re going to be working on a fixed price.  The Kirschenbaum Contracts™ already have built in provisions for increases in some circumstances.  For example, you can raise the RMR up to an agreed amount each year; you can raise the price by an increase cost in material; you can raise the price if the AHJ requires additional equipment or service; you can raise the price if installation is delayed.  There is no provision that permits an increase just because you underestimated the job, unless the price you gave is so off the wall it could not be disputed that you lacked capacity to contract in the first place.
          I suppose that one legal concept may help; that would be when both you and the customer made a material mistake in the job.  A mutual mistake by both parties is ground for voiding the contract.  A mistake by one party, and not the other, is not grounds for voiding the contract [absent a finding of unconscionability, in which event the court won’t enforce the contract]; ie, you quote $3000.00 for a $45,000 job.
          The simple words proposed by AJ above is not likely to be well received by a customer because it’s too open ended.  You can’t quote a price, quote the estimated time for completion of your performance, and then demand more money, a lot more money, because you didn’t estimate the job correctly, at least without some justification that I would suggest be in the contract.
          For example, you and the customer really aren’t sure of the scope of the job [maybe building isn’t fully designed or constructed] or how long it might take.  In that case it would be appropriate to state just that in the contract [in your case it would go in the Schedule of Equipment and Services] that time and material could not be fully determined at time of contract and that the parties agree to T&M after a certain stage of the job or after fixed number of work hours have been exhausted.
          What you should remember is that you can put most anything in your contract as long as it’s clear, not entirely unreasonable [unconscionable] and it’s agreed to.  Probably best to involve your attorney when trying to structure and word hybrid deals like this one.  AJ happens to be a Concierge Client, which you should be too, so he gets a free half hour each month for contract review and assistance.  You should sign up today for the Concierge Program if not already a member.  Call K&K Concierge Coordinator Stacy Spector,Esq at 516 747 6700 x 304 or SSpector@Kirschenbaumesq.com.

WEBINARS SCHEDULE and REGISTRATION: SOFTWARE  //  CENTRAL STATIONS

SOFTWARE WEBINARS:
         With all the discussion, and dissatisfaction, about management software our first webinar series is by software providers offering comprehensive software programs for the alarm industry.

Title:  Fieldhub: All In One Operations and Accounting Software For Security and Fire Integrators
When:  October 3, 2023 noon ET
Why attend:  FieldHub is a comprehensive software program that integrates proposals, planning, warehouse inventory management, scheduling, field technician mobile applications, invoicing, accounting, tracking systems and devices, creation and linkage of a central station account, and much more
Who should attend: managers and owners
Presented by: Miles Fawcett, Founder and CEO of FieldHub Inc. 202.417.8196; miles@fieldhub.com     www.fieldhub.com
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum PC
Register here:  https://attendee.gotowebinar.com/register/2290942861013931612
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Title:  Micro Key Solutions
When:  October 4, 2023 noon ET
Why attend:  Robust Accounting and Monitoring Solutions for the Security Alarm Industry delivering user-friendly, seamlessly integrated accounting, service, and central station monitoring software that centralizes your data, integrates service tracking, and streamlines operator communications.
Who should attend: managers and owners
Presented by: Victoria Ferro, President, Micro Key Solutions, 407-870-0040; vferro@microkey.com www.microkey.com
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum PC
Register here:  https://attendee.gotowebinar.com/register/6163494282721597275
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Title:  Innovative Business Software:  operating software for central stations
When:  October 5, 2023 noon ET
Why attend:  Innovative Business Software is central station solution to smooth operation and integration
Who should attend: managers and owners
Presented by: Jen Kolind, President and CEO of Innovative Business Software Inc. 469 556 2822; jens.kolind@innovative247.com   www.innovative247.com
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum PC
Register here: https://attendee.gotowebinar.com/register/2817426411948243036
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Title: WorkHorseSCS
When: October 11, 2023 noon ET
Why attend: Alarm business operating software solution for Sales, Field Service, Customer Service, RMR (Recurring Monthly Revenue), Electronic contracts and Digital Signatures, all conveniently housed in one unified platform. Streamlines your alarm company's processes with Single Point of Data Entry solution. Integrates with over 40 Central Stations, along with leading platforms like Alarm.com, Alula, resideo, SecureCom, and SecureNet.
Who should attend: Managers and owners
Presented by: Steven Hayes, 941.229.8200 steven.hayes@workhorsescs.com www.WorkHorseSCS.com
Hosted by: Ken Kirschenbaum, Kirschenbaum & Kirschenbaum PC
Register here: https://attendee.gotowebinar.com/register/3965237386615522648
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Central Stations series: Why You Should Be Monitored By Our CS
Hear from the leading central stations and “Why you should be monitored by” that central station. The topic of remote operator monitoring from outside the central station facility and the dynamics that issue presents is sure to come up. The question you need to be asking is why isn’t your central station participating and why are you still using your central station if it’s not participating?

October 17, 2023 noon ET, Emergency 24
Registration Link:  https://attendee.gotowebinar.com/register/5032873072502046552

October 18, 2023 noon ET, Statewide Monitoring Corp
Registration Link:  https://attendee.gotowebinar.com/register/3560536843132524128

October 19, 2023 noon ET, Legacy Security Services
Registration Link: https://attendee.gotowebinar.com/register/4084258420664728661

October 24, 2023 noon ET, National Monitoring Center
Registration Link: https://attendee.gotowebinar.com/register/106284724856601695

October 25, 2023 noon ET, Dynamark Monitoring
Registration Link: https://attendee.gotowebinar.com/register/5050152997423183449

October 26, 2023 noon ET,  COPS Monitoring   Registration Link: https://attendee.gotowebinar.com/register/1774793620122519136

October 31, 2023 noon ET, Rapid Response Monitoring Center
Registration Link: https://register.gotowebinar.com/register/2959829660260960857

STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com
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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
www.KirschenbaumEsq.com