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COMMENT ON HIRING UNLICENSED CONTRACTOR FROM FEBRUARY 12, 2016 ARTICLE
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Ken
    On the question of an ACO hiring a licensed C10 contractor to do his fire alarm work, it is still illegal to do so in California. Only a general contractor can hire a subcontractor to complete an entire part of the job for them.  In California, a sub can hire another sub but it must be for less than 10% of the total job. This would be like a C10 electrical sub hiring a C19 sprinkler contractor to install the OS&Y valve when completing the fire alarm installation.  Our company always talks about protecting ourselves from the liability of the worst case scenario for a job. In the fire alarm industry we protect lives every single day. The liabilities are huge. That's why we use Kirschenbaum contracts. If you are being paid for the job have the proper contractors licenses and the proper contracts. 
Steve Sopkin
Mijac Alarm
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RESPONSE
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    Chances are that if you are contracting for the work or performing the work you need to be licensed.  Licensed or not, the contracting party and the one performing the work both need to be protected by contract, which we accomplish with the All in One Agreements and the Subcontracting Agreement.
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MORE ON RETAINING TITLE TO EQUIPMENT FROM FEBRUARY 13, 2016 ARTICLE
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Ken
    Here can the "agreed to value of the installed equipment" be posted in your Commercial All in One contract.  On your older contracts we were able to state the equipment value, thus enabling us to add that amount to the outstanding balance in the event of a default.
BF
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RESPONSE
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    Quite right.  On the older form we had the alarm company retaining the right to the communication equipment or software and including an "agreed value" for that equipment.  In the event of subscriber default the alarm company could elect to sell that equipment for the "agreed value".  We were asked too many times to modify this provision, or explain it, and eventually moved away from this model.  Instead, the alarm company retains title to all Intellectual Property, but there isn't a provision for an "agreed value" or election to sell that IP to the subscriber.  
    Companies that didn't think about going after defaulting subscribers weren't that interested in retaining the title to the communication equipment, especially since in most if not all cases the communication equipment was integral to the alarm system.  
    We can modify the new All in One Agreement to include retention of title and agreed value.  By the way, this issue is for the Sales agreement.  The All in One Lease does include a provision for agreed value and the option to sell the equipment.
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