KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Comment on Contract execution on website, Click Through or Wrap Around / ISC East private meeting – schedule now
September 26, 2024
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Contract execution on website, Click Through or Wrap from article on September 13, 2024
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Ken
Hey Mitch, I love buried surprise clauses in contracts. Thanks for bringing up this one. My two favorites are in general contractors’ subcontractor agreements.
1. After we install our equipment and it becomes part of the building, if vandals come through and destroy or damage the equipment, we are responsible to replace at our cost. I guess they do not wish to carry construction insurance.
2. The Convenience Clause which allows the contractor to cancel the contract for no reason, at any time. Convenient for them.
Stan Corn
Alarms, Inc.
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Response
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You need to be very careful when you sign others’ contracts, and that most definitely includes GC’s contracts. Often those contracts are AIA forms or knock offs. You could end up:
* Being responsible for damaged or lost equipment during the job
* Required to carry insurance you don’t have
* Being responsible for losses you aren’t responsible for in your K&K Contracts
* Indemnity requirements you should not agree to
* Loops and hurtles you have to go through to get paid; when and if you get paid
* Dispute resolution provisions that would make litigating or arbitration all but impossible for you.
It’s pretty simple. Concierge Clients should not sign another’s contract, including a GC’s contract, a Property Manager’s contract, an Institutional Customer’s contract, a municipality’s contract, without having it reviewed and negotiated. If you think your Uncle Vinnie can do it, good luck. Concierge Clients are entitled to a free half hour contract review and negotiation every month. The review and negotiation if necessary is usually accomplished within that half hour. And you don’t have to run into Uncle Vinnie at the next family to together. Just pick up the phone – better yet – if you are a Concierge Client send the contract over to me in WORD if possible and let me know if you identified any issues.