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Comment on RMR upon activation
January 17, 2022
Comment on RMR upon activation from article on January 4, 2022
          The article on January 4, 2022 discussing when the monitoring term begins caught my eye as I have been guilty of altering the start date. 
          Thank you for explaining the logic but perhaps something else should change too.  Consider if I have a large job in which I offer a 10-year term but allow the client to negotiate to a 5-year term or maybe he was offered a 5-year term. 
Perhaps I discounted the installation and the profit is really only in the monitoring, inspection and service.
          The project is expected to take 18 months for buildout. Now in the CoVid world of supply chain shortages, suppliers closing doors, people getting ill or isolating for other reasons, jobs being closed due to CoVid. All of these things impact the completion and the project drags out to 36 months or more.  Now, once I do begin monitoring, my contract says that I really only have 24 months or less of monitoring "VALUE" for it will expire 5 years after the start of the job. I never get to really collect on the time of the installation unless the client defaults and the contract is enforced and a settlement/judgment is made.
          I appreciate the purpose of starting RMR on the first of the next month. You mentioned an option is to waive the RMR until the installation is complete. I might waive the RMR but the contract still has an expiration date. I have waived the RMR (my asset and my income) but that does not extend the contract term. How do I write this to keep from losing the 60-month value of the contract AND assure that I am still preserving the intent of "commencing on the first day of the month next succeeding"? How do I maintain the contract as a specified term even if the services do not start for several months?
Jersey Jerry
          Your All in One agreements are presented in standardize forms.  Just like the pants you buy, the contract may require modification for a particular account.  That doesn’t mean you change the form, because in most cases the form terms should be acceptable. 
          If you know you have a delayed completion you can make accommodation by indicating in the Schedule of Equipment and Services that provided subscriber is not in default the start date for the recurring services [the post installation services] will begin to run upon installation, or upon successful test signal, or upon AHJ approval, or upon your designation of substantial completion, or upon a set date, whatever the deal is and whatever makes sense.
          In other words, you need to be flexible.  Here’s what else you need; you need to join the Concierge Program because you can’t be spending your time on contract terminology and modification.  One of the main benefits of the program, and a benefit that more than pays for the entire program, is a free half hour each month for contract review and negotiation.  You don’t think you need my assistance?  Well you do.  Don’t confuse your Internet search with my law degree.  That’s a joke.  Don’t confuse your long time experience with contract negotiation in the alarm industry with mine; that’s not a joke, unless you’ve been at this for 50 years and spend most of your day dealing with alarm contracts.  Join the program; The Concierge Program has a 95 percent retention rate.  Trust me, the 5% will end up missing the program.
          It’s not possible to have a form agreement that covers every sale and job unless you are mass selling [which some of you do – and there’s nothing wrong with that].  But if you’re a typical alarm dealer customizing your jobs and actually meeting with your potential customers, you will be faced with contract discussions, challenges, objections and modifications.  Sometimes you bend and other times you don’t.  Each deal has to be looked at independently [again, unless you do mass market and don’t want to spend a minute making any changes or exceptions]. 

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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