Please note: the author is a US-based fire-protection expert but has written the article with an international audience in mind
The true cost of a fire alarm and detection system has to be in terms of profit and asset loss, and not the installation cost.
Very few fire alarm and signaling systems are installed that are not required. In most cases, laws and insurance companies will require their use. Codes and standards will dictate the minimum amount of protection required and of the systems that are installed, most will only have the bare minimum.
Homeowners and business owners spend much more time and energy selecting paint colours, interior decoration and amenities. The most critical aspects of the building construction that will enhance asset protection and the survivability of occupants during a fire are not considered.
“Stakeholders will see the cost of maintaining a fire alarm and detection system to be a liability and not investing in business continuity.”
Fire alarm systems that are not wanted are also neglected. The same laws and insurance stipulations that require a fire alarm system will also require they be inspected at regular intervals.
Stakeholders will see the cost of maintaining a fire alarm and detection system to be a liability and not investing in business continuity. Most operations who focus on their bottom line will select a company with the lowest bid or service rates.
Typically, companies that do not pay well will not have the most competent technicians and installers. Stakeholders that are not proactive about fire protection who hire a service company without qualified technicians are compounding their liability and increasing chances the system will not respond when needed.
Case study
A sign-making company underwent a review of their business and operations by their insurance provider. The insurance company informed them that to continue coverage their premium would increase due to the risk of fire.
Wood was predominately the raw material used to produce the signs which creates wood filings, shavings and dust. Under the right conditions, saw dust can be as explosive as flammable gas.
When you weigh the cost, you must think worst-case scenarios
The owner decided to pay the increased insurance premium rather than investing in a fire alarm system. When you weigh the cost, you must think worst-case.
In other words, do not think how much the system costs to install and maintain, but how much your business would lose in assets and operating income. In the event the structure was destroyed by fire, or shut down temporarily for repairs, after a week the losses could have paid for the fire alarm system. And as always, no amount of money can replace the loss of life.
Cut cost on the curtains and not the fire alarm system
Stakeholders should take an interest and be involved in the fire detection and protection of their structure. This applies to someone who is building or buying a home, renting a space for their shop, operating an eatery or a corporation constructing a factory to produce goods.
The architect or general contractor the stakeholder retains will select sub-contractors from the lowest bids. Our information age and the Internet make it very easy to do some research about the fire alarm contractor selected.
The stakeholder can influence the contractor’s choice and should use the same prudence when selecting a company to maintain the system. Cut cost on the curtains and not the fire alarm system.
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Paul,
A great article. You are so correct. Too many times prospects also look for the lowest bid when looking for a contractor, and not t the experience, training, credentials and extent of coverage they would be getting.