Security Guard Contracts: Finding Your Inner Lawyer

Reviewing security guard contracts is tedious, but necessary

5. Beware of subcontractors. Never underestimate this possibilityâ¬especially when dealing with an agency that claims to be nationwide but in fact simply subcontracts out across the country. If you allow the contract guard provider to hire subcontractors, then you must ensure and define the terms.

Preferably, all the terms you require of the primary agency must be extended to its subcontractor. Also, it is important to demand in writing that any subcontractor must specialize or give proof of experience in your particular industry. For instance, if you contract with a provider for guards in a retail environment and that provider subcontracts with an agency specializing in commercial business, then this mix could be ineffective or worse. In addition, the company you have a contract with that subcontracts work will ask for â¬Shold harmlessâ¬ and additional insured language in its contract with its subcontractor. Therefore, you should specify language in your contract that you be named as an additional insured by the subcontractor.

6. Consider specifying wages, rates and benefits. You get what you pay for, period. Specify the range of hourly rates you want the guards to be paid, and then compare that with the proposed billing rate. A former contract guard agency owner tells me that a fair billing rate places the wage rate at around 65 percent of the billing rate. Also, you should understand whether the agency provides benefits to its security officers. Companies that provide benefits tend to have better security officers and better retention.

7. Include a cancellation clause. A 30-day clause in a contract is typical, but make sure the clause applies to both you and the agency. This protects you from an agency walking away and leaving you unprotected.

Of course, those are just some of the more critical components. Others may be just as important, such as scope of service and security officer responsibilities, vehicle usage, uniforms, recruiting and training, and supervision. However, at least now you can take some immediate steps to ensure that you protect your company.

Getting the Legal Help You Need

As far as securing contracts with good terms, as I see it you have a few options. The best option is to have an attorney from your in-house legal department assigned to support your department. Then, as contracts need to be reviewed, that attorney can ensure that the proper terms are structured into the contractâ¬and you wonâ¬"t get stuck waiting for days or weeks for someone to return your calls.