KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Fire alarm contracting with GC and owner  
August 12,  2024
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Fire alarm contracting with GC and owner
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Ken,
            I wanted to ask a few questions in regards to the fire alarm contract All in One we have.
           Here's the situation: Customer is renovating a space its lease from the property landlord. The general contractor (GC) handling the renovation reached out to the electrical contractor (EC) and inquired if they had a fire alarm contractor. The EC contacted me, and I provided an estimate which was subsequently approved.
My company will be handling not just the parts and smarts but the entire permit, installation, and fire alarm checkout. Monitoring and inspections will be under a separate contract directly between Customer and my company.
            I have a couple of questions:
            Can I use the Commercial Fire All-In Agreement solely with the EC and only complete the installation portion?
            Do I need an agreement with the GC, even though I am a subcontractor to the prime EC?
            I suspect the EC marked up my price and doesn’t want the GC to know about it.
Thank you for your guidance on this.
Kind Regards,
JM
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Response
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            You've been engaged to install the fire alarm by the GC; you will be contracting with the GC.  You can use a Fire All in One using the sale and installation part only.  You can leave the other parts because they won't apply.  The GC may require you to sign its contract.  It's a good idea to get that contract reviewed and likely modified.  That review would be covered by the Concierge Program, so you should join if you're not already a Concierge Client.  You can relax many of the Protective Provisions when you are just doing sale and installation.  The Protective Provisions are most critical for the after - install services.
            You will have a Fire All in One with the owner for the after-install service.  You will be using all of the contract other than the installation provision.  While it appears you have a relationship with the owner, so the contract with the owner is likely, if that was not the case you would need to consider if you were interested in the installation work without the after-install services where you will be charging RMR. 
            Keep in mind that by contracting with the GC it's the GC who will be paying you.  If the GC falls behind you should immediately let the owner know; you may have to insist on direct payment from the owner if GC becomes unreliable.  Be mindful that an owner need only pay once.  So if the contractor is paid and doesn't pay a subcontractor the owner would have no liability, as general rule.
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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
www.KirschenbaumEsq.com