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when you can't get your Fire Alarm All in One signed May 4, 2017

KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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when you can't get your Fire Alarm All in One signed
May 4, 2017
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Next Webinar: May 9, 2017.  
Title: All You Need to Know Before You Add DIY to Your Business
Presented by: Megan McDonald, VP of Marketing, Alarm Capital Alliance and MyAlarm Center
Register here:  https://attendee.gotowebinar.com/register/1457595459244475906
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when you can't get Fire Alarm All in One signed
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Ken: 
    Most of our work is installation of fire alarm systems in new construction high rise buildings.  As a condition of being awarded a contract from the General Contractor, we are required to sign and use the contract provided by the GC which states almost verbatim, the same conditions as the contracts we have purchased from you and require us to assume all liability, indemnify the GC, owner and architect even from their own negligence. If we won’t sign, we don’t get the work. 
    The contracts even state that our company being paid is condition precedent on the owner paying the GC.  I am well aware of the exposure this causes my company but without the work we would not be in business. So far this has worked out for us for 13 years now and the contingency plan in the event of a major claim is to just go out of business.  I’m curious how other companies handle this situation and if you think there is a better way.
    We do use your contracts for monitoring and inspections.
Matt
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Response
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    It's not surprising that you can't get your contract [Fire All in One] signed all the time.  General Contractors will be using the AIA contract form, and you are correct that it is exactly opposite in terms to your Fire All in One.  You will be indemnifying the GC, architect and owner for your and their negligence.  Read carefully.  You may be responsible for their design mistakes too.  
    You need to have an updated Fire All in One because if you don't have this form then certainly none of your subscribers will be signing it.  The Fire All in One is also going to have more specifics then the GC's form and you may be able to get your form attached as an exhibit.  A little rangling and you may be able to get your form approved as the governing document when there are inconsistencies between your agreement and any other document.  You negotiate the best you can.  Then you cover your butt with enough insurance to cover your potential risk.  If you know the cost of insurance in advance you may be able to include it in your bid or proposal.  
    Also keep in mind that the GC is only interested in the installation.  You will want to provide the compulsory inspection, repair and monitoring of the commercial fire alarm system.  You should be able to get your Fire All in One signed by the owner for those services.  In fact, for those services you should take a harder line and demand that the owner sign your Fire All in One.  The RMR services are rarely worth taking excessive risk by giving up your "protective provisions" in the Fire All in One.
    Incidently, the pay when paid provision may not be valid; it's not in New York.  
    Your contingency plan of going out of business doesn't seem like a very good plan.  Getting proper insurance will be cheaper and less aggrevating then engaging in fraudulent conveyances or playing the dead-beat game.  It won't be that easy to make your RMR contracts disappear.  
    OK, so how do other companies deal with this issue.  Probably not too many options, good ones anyway.
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WEBINARS:  Sign up for any or all of the webinars that interest you.
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FREE Webinar Series "All You Need To Know About" alarm industry issues. 
Register for one or all.  Each presentation scheduled for half hour to hour.  Not recorded.
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Title: All You Need to Know Before You Add DIY to Your Business
When: May 9, 2017 12 noon EST
What will be covered: This session will cover the basics of the DIY model, the critical factors of succeeding with a DIY business, the DIY customer and how the market has shifted over the last few years.
Who should attend: Alarm company owners, managers and those interested in DIY business model
Presented by: Megan McDonald, VP of Marketing, Alarm Capital Alliance and MyAlarm Center. 866-484-4800 x 8470   megan.macdonald@myalarmcenter.com 
Register here:  https://attendee.gotowebinar.com/register/1457595459244475906
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Title: All You Need to know about getting NICET certified
When: May 23,  2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered:  Why you should get NICET certified and how to do it
Who should attend: Alarm company owners with technical skills, technicians
Presented by:  Bryan McLane, National Training Center, 4148 Mantle Ave., N Las Vegas, NV 89084. Direct phone 828-649-1337  Bryan@NationalTrainingCenter.net
Register here: https://attendee.gotowebinar.com/register/1545079201485816579
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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
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