Comprehending Security Contract Agreements
This security contract agreement ("Agreement") is a contract between you and the security services company you are hiring to guard your facility.
Why Is This Important? Both the security company and the client want the same thing: to have optimal safety for everyone at the facility. Accurate security is designed to prevent negative situations from occurring as much as possible. However , neither party has a crystal ball! There are always circumstances that cannot be predicted. A good security agreement will go a long way in ensuring that the responsibilities of both are clearly set out, so that both parties know who is responsible for what in both expected and unexpected circumstances.
Factors that Constitute a Security Contract
A security guard company contract should contain detailed information covering the security services to be provided, payment details, a start and end date for the contract, termination provisions, liability and hold harmless language, insurance coverage, security officer work schedules, and several other provisions. The following provides a list of these elements, and a brief description of each, which can assist security guard companies in crafting their agreements with customers:
Description of Services to be Provided
A listing of each service to be provided, such as:
Compensation / Fees
The price of the services to be delivered by the security company, and the manner and method by which payment will be made. Payment may be made by the hour, per shift, or on an annual basis.
Term
The proposed start date, and the end date of the agreement.
Termination
The provisions by which either party can terminate the contract, and the obligations of each party after the termination.
Limitations of Liability and Indemnification
Should an incident occur which results in injury or damages, provisions which mentally and financially protects both the company and the client. The person seeking payment may only be entitled to pursue the party most responsible for any actions or inactions leading to injury or damages. If the client is partially at fault, then the client may be prevented from seeking full compensation from the company.
Insurance Requirements
The amount and type of insurance each party is required to carry.
Work Schedule of the Security Officers
The schedule, to include days and hours, that the security officers will be working under the agreement.
Confidentiality
The manner in which each party protects the confidential information of the other, and possible penalties for sharing that information without consent.
Compliance with Federal, State and Local Laws
The security guard company and the client will agree to comply with all federal, state and local laws, and agree to seek legal counsel should there be a violation of those laws. A violation of any law may be grounds for termination of the agreement by either party.
Assignment
The ability of either party to assign the contract to another person or company.
Tailoring Your Security Contract PDF
Like any other document, your contract must be a reflection of your needs as a business that is providing a service as well as the needs for your client. So what does that mean? It’s simple: it means you need to adapt the document to your specific circumstance, both based on the expectations that you have for the service and the obligations that the law imposes on the business you have created and the service you are providing. Anyone can take a cookie cutter document and adjust some of the words but if you do not consider not just the needs of yourself and your client, but also the needs further along the line, the risks you are exposed to as a business, and the obligations imposed upon you by law, you are putting yourself in jeopardy. The law cannot be customized, nor can the obligations imposed upon you if you are a corporate entity. Rights of employees or other outside contractors are reviewed and evaluated in a different way than is the case for your business and this is why you to consult with an experienced business attorney to ensure you have everything covered and that the agreement meets your requirements for your business. For security businesses, there are few areas in which you might have concerns related to the law. For example, whether or not your employees will be subject to sporting safety laws, they might be handling weapons, dealing with potentially violent people or circumstances, etc. – all of these issues are handled by relevant sections of the law and have requirements that must be met by the company. An experienced business attorney from UpCounsel can help you custom tailor your agreement to maximize your protection while meeting the needs of your clients and the requirements imposed upon you by law.
Legal Requirements and Regulatory Adherence
Areas of law that may come into play with a Security Contract agreement include: (1) licensing requirements, (2) insurance obligations, and (3) local and federal laws and regulations.
Many states require security service companies to be licensed to operate. Some require the actual officers of the company to be licensed. In addition, these companies should be licensed as Alarm Systems Agents if they deal with alarm monitoring systems. Installing alarms is a regulated business also. The states that regulate alarm systems also usually have rules regarding the notification of law enforcement authorities. Sometimes you will find regulations prohibiting things like false heat alarms and emergency contacts being parked in front of the system’s control panel.
The need for bonding may apply to security guard companies or other employees that will be handling cash or other valuables.
Security guard companies and alarm monitoring companies should obtain sufficient insurance coverage to protect the insured and their clients from losses that could be incurred from a failure to provide services. The policies can be based on the number of guards employed or the amount of revenue being generated. Coverage for lawsuits filed against your company, allegations of slander, privacy violations, fraud, sexual harassment, and other liability issues is available.
The Significance of Digital Signatures in Executing Agreements
The use of digital signatures is crucial in the execution of security contract agreements. Digital signatures offer a convenient way to provide a unique electronic fingerprint that can be verified by software. This verification process can determine and confirm the authenticity of the document’s creator, allowing the entire process to be easily automated and bringing multiple important advantages to the process.
By using digital signatures, businesses can significantly reduce the amount of time involved in executing security contract agreements. The signature can be instantly and automatically verified, with no further need for human review or other costly overhead. Such quick execution is far superior to traditional, manual methods of signing, and can give your business a competitive edge.
Digital signatures also provide legal validity to your security contract agreements . Since they incorporate a public key encryption and an encrypted hash in the signature, both parties can be assured that the identity of the document’s creator is accurate and that the text has not been altered or tampered with once the signature is applied. Because of this, digital signatures have a proven track record of their reliability in court. Having this level of trust associated with your executed documents helps to reduce disputes, future costs involved in resolving such disputes and other issues related to the collection process.
Another factor to consider is the environmental impact of executing security contract agreements in their traditional form, as opposed to a digital signature. With a paperless approach, you are effectively eliminating the need for physical copies of signed documents, as well as the associated hard drives, storage facilities, and shredding. Going paperless with your security contract agreements will help to eliminate a substantial amount of waste in your organization and leave less of a carbon footprint, allowing you to project a positive image to your clients and others.
Steps for Designing a Specialized Contract PDF
The next step in your security contract preparation is to create the contract PDF. You may choose to use an online security contract or download a security contract template. If you choose to use an online template for your security contract, it is important to maintain a consistent format for your contract. Your contract should be free of typos, spelling errors and easy for the reader to follow. When you create your security guard contract PDF to give to clients, you will need to ensure that you use the correct font size. Your security guard contract should be created using 11 or 12 point font size. This will ensure that your document can be read easily by your client. In addition, 11 or 12 point font size will help when keeping a printed copy of your security guard contract. Make sure the pages of your security guard contract are numbered, and use 1 inch margins on all sides. Ensure you have a header at the top of each page so that the reader knows what they are reading even if they flip through pages at random. It is also important that your contract uses bullet point lists, lists with numbers, bold text and hyperlinks where appropriate. Your security guard contract should be broken into sections, and sections should be labeled numerically. Those main sections should then be broken down into additional subsections that have letters assigned to them such as: If you have any additional items you do not feel belong to a particular section of your security guard contract, or you would like to add a separate section, simply add it and number it accordingly. Finally, once your security guard contract has been completed, be sure to share it with a professional, certified contract lawyer. As a professional in the field, they will be able to make additional recommendations and answer any questions about your security guard contract.
Evaluating and Modifying Security Contracts
It is essential to regularly review and update your security contract to ensure that it accurately reflects the services you are providing and any changes to the law. If you fail to update your contract, you risk being legally bound by outdated terms.
Security contractors should take the time to review their contract at least once every year. To ensure that your contract is as comprehensive and up-to-date as possible, you should conduct a thorough contract review process. During the contract review process, you should:
• Confirm that the contract mirrors the services you are offering. If your contract does not accurately describe your service package, you need to update the contract to reflect the competitive services you are providing.
• Consider changes to the law and whether those changes should be reflected in your contract. If you like an industry standard, then choose an article in the new contract that addresses issues specific to your industry. If you do not like or agree with an industry standard, then make it clear to your attorney what you want changed . An attorney will only write the contract and reflect the views of the servicing company if you tell them what you want!
• Expand sections of your contract that may need additional detail. For example, if your scope of services at the time you prepared the contract was not as robust as it is now (because you had fewer services to offer) then you may re-evaluate your scope of services to see if there are any limitations (like the exclusion of services) that are no longer needed.
• Consider whether your contract should include certain boilerplate terms. Be sure to consult with your attorney to determine the best way to address these issues.
• Think about whether there are any new contracting methods that should be included. Use the contract review process to consider whether a master contractor agreement would be beneficial.
Updating your contract may seem difficult, but it can give you peace of mind down the line that you will not be held to out-of-date obligations. A contract review process can help ensure that you don’t face any unpleasant (and costly) surprises down the line.