Tariffs have become a reality. Price increases are inevitable. The alarm industry gets much of its equipment form China, particularly the cameras. My guess is that most of the equipment is from other countries.
Price increases are also evitable. You are probably wondering what you can do about price increases affecting contracts you have already signed and contracts you’re about to sign.
First, the price increase is not a Force Majeure event. You can argue it, but I doubt you win in the end. And Force Majeure would only allow you to cancel your performance; you won’t get paid. It’s not the issue or the answer.
If you use updated Kirschenbaum contracts, you are covered. The contracts contain a provision: “Should ALARM COMPANY be required by existing or hereafter enacted law to perform any service or furnish any material not specifically covered by the terms of this agreement Subscriber agrees to pay ALARM COMPANY for such service or material. The pricing to be paid by Subscriber in this agreement is based on current pricing by ALARM COMPANY’s suppliers and vendors. In view of supply shortage and inflation, Subscriber agrees to pay any increase for equipment or services to ALARM COMPANY by ALARM COMPANY’s suppliers and vendors in connection with equipment and services to be provided by ALARM COMPANY to Subscriber.”
We don’t mention tariffs and I don’t think we need to. It could of course be included specifically.
If you aren’t using Kirschenbaum contracts or not using updated contracts, I urge you to get them without delay. They are constantly being updated to keep pace with technology, changes in custom, practice and laws.
