QUESTION:
Ken
I have a customer with 10 restaurants. They have been a very slow pay since we took them on, and now they haven't paid us for a store we completed for them several months ago. We sent them notice after notice requesting payment to no avail. We finally sent them a cancellation notice, which takes effect July 31, and asked them to find another vendor.
Now, here’s my issue. They now have another vendor taking over the accounts (which makes me happy), and they are asking us to unlock the installer codes for the new vendor (with one day notice of course). However, they still owe us about $1,500 for “one” store. If we release the panels, I can assume we won't be paid for the past due balance
Your recommendations?
Thanks
Rodney S
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ANSWER:
Who owns the lock out codes? Unless your state legislature has been specific legislation [and I'd like to hear from anyone who knows of any] your contract will determine who owns the code. If you have sold and installed a system then the subscriber will own the system and would be entitled to the codes. If all you are doing is selling and installing you really don't have any further interest in the code or the right to lock the subscriber out. Although an argument could be made that you don't want to share the code during the warranty period when you would be on the hook to make repairs.
However, if you have a service or monitoring contract [and of course if you have a lease] then you have a continuing relationship, and responsibility, and you may own the code. All of my contracts, other than the sales contract, would specify that you own the code. My monitoring contract provides that you won't release the code until the subscriber has fully performed the 5 year monitoring contract.
Revealing the code always comes up at a difficult time. Your subscriber has tossed you out, or is about to. More likely than not you are owed money. The relationship is strained and the new alarm company makes things worse by explaining the difference in cost between a new panel and retaining the old panel.
If you are really happy the subscriber is leaving you then make arrangements to pick up what you are owed and offer them the codes.
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