KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Can Sprinkler Co sub fire alarm install and after-install services to Fire Alarm Co July 29, 2025 ******************* Can Sprinkler Co sub fire alarm install and after-install services to Fire Alarm Co ******************* Ken, We have been approached by a sprinkler contractor (we only do fire alarm, not sprinklers) to potentially be subbed under them for monitoring and inspections as they would like to offer customers a “complete package” of services. It sounds like good business for us as they’re essentially going to find RMR for us, and we will still be the ones installing, managing it, etc. to make sure it’s up to our standards. My only concern is they’re likely to want to sign the contract themselves rather than their customer/the end user as the sprinkler contractor will be the one we’re billing and they’re going to upcharge the customer. Do we need to insist on the end user signing the contract, can they sign it, or is there a different contract we should have them sign? Any/all thoughts appreciated. Thank you, Steve *********************** Response *********************** My initial thought, which I am going to stick with, is that this arrangement will not work. It's one thing for a GC [and the sprinkler company may not even be a GC] to hire a licensed trade to perform installation within its trade, but it's another for a GC to contract for licensed services when it doesn't have the appropriate trade license. The contemplated structure is not a good idea for you if the GC is going to own the contract with the end user. You want to own the contract for lots of reasons, including liability issues and creating value for your company. You can have the sprinkler company, acting as GC, engage you to install the fire alarm. I'd prefer the Fire All in One be signed by the owner, even if provides that you'll be paid by the sprinkler company for the install. You should have the Fire All in One signed by owner for all the after-install work. If you want to give the sprinkler company a finder's fee or whatever you want to call it, then do that. ********************** STANDARD FORM AGREEMENTS: To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** WEBINARS: https://www.kirschenbaumesq.com/page/alarm-webinars *********************** ALARM ARTICLES: You can always read our Articles on our website at www.kirschenbaumesq.com/page/alarm-articles updated daily ******************** Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth *********************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* PODCASTS: https://podcasts.apple.com/us/podcast/ken-kirschenbaum-presents/id1794851477 ************************* Getting on our email list / Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. ************************** 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
