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New contract or Supplemental Agreement
March 19, 2021
New contract or Supplemental Agreement
          We have a client that has been growing like crazy and is constantly requesting additional work to be done after the initial agreements were signed.  For example, they'll add additional doors for access control or another camera here and there.  We charge for the installation but we also add onto the RMR in these cases.  However, it has become cumbersome to revise the agreement every time to reflect the additional work that was done.  This happens frequently because they are constantly modifying buildings or expanding from 1/2 of a building that they occupy to take over the whole building.  In one case, they built a corporate headquarters doubled the size.
          We get requests from various people within their Facilities, Security, IT and HR Depts for work that needs to be done.  Generally, we send them a proposal which they sign off on....and it's always a case of get the work done yesterday.  We are looking for a simple way that all of the additional work requested becomes part of the already signed contract that is in place.  Could we do this by either creating an addendum to the contract to reflect the new devices and charges (Equipment, Installation and RMR) or write a sentence into the proposal that the accepted proposal becomes a part of the agreement and is subject to all terms and conditions of that agreement?   
          I do have one question regarding the Supplemental Agreement.  Does the statement regarding the term for on-going services apply only to the new equipment that was installed as part of the rider or is it also updating the term on the original agreement that was signed?  I ask because our immediate application for this is a customer that has existing buildings and they keep adding equipment (access control, cameras, etc) onto the original systems that were installed.  It doesn't make sense to me to have a new term on part of the system and an old term on the original part of the system since it's all the same system.
Name withheld
          When we provide the All in One Agreement for commercial or residential we also provide a Supplemental Agreement which is designed to be a rider to the main agreement for changes to the installation or after-installation services.  The form provides that the terms of the original All in One govern the new part of the installation or service.  The “term” for the after-install services covered by the RMR is the original term in the All in One; it does not start the term anew.  We did have that in the form but got too much push back.  That change can be made easily to provide that the Supplemental Agreement extends the original agreement. 
          There is a fine line to decide whether to use the Supplemental Agreement or get a new contract signed.  The Supplemental Agreement is really designed for modification of the install or services, not an entirely new installation.  The phrase “the tail doesn’t wag the dog”.  If the add-on is bigger than the original job it seems to me you need a new contract signed. 
          You can never do wrong by getting a new contract signed. 
          Keep in mind that if you have a customer with multiple locations you can use the Rider for Multiple Locations rather than getting a separate contract for each location. 

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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