How To Negotiate a Fair and Functional Security Contract
Contracts are a huge part of any business. Negotiating a fair contract is very important. We all understand the importance of a contract, but do you understand what you and your client need? Every contract should have the basics, such as hours, holidays, length and pay rates. It’s when you need to handle requests, or particular areas of a contract, that the negotiations can either stall, or end the contract all together.
Avoiding the Stall
The first step in negotiating a contract is to meet with the client and determine what they want and need from you. Discuss the special requirements and requests first. Always communicate and apply changes only after carefully considering every option, and don’t be afraid to counter with suggestions as well.
Preparing the First of Many Drafts
Always read and reread everything. When negotiating and submitting a contract, leave no stone unturned. It is important to factor in your cost into everything. Once your contract is in place, consider using an attorney to go over it to check for errors, etc.
Key Sections to Consider
Cost
Man hours, pay rate, holiday pay and number of holidays, training, special requested training, and special events can add up. Your client will dictate the services they want and you will get a good idea of the expectations.
Let’s cover a few of the bigger items I listed above:
- Man hours. This is a great way to determine income and ensure this account maintains a certain amount of billable hours.
- Pay rates. This assists with knowing cost vs profit, and more importantly, the skill level you can acquire.
- Training. Determine how much training does the security staff need, and any specific training, then negotiate who pays for certain training. It’s normal for you to be responsible for basic training and negotiate specific training per site.
Submit and Negotiate
Trust me when I say this is a slow process. Many times clients hesitate committing to a contract, so be respectful and get it signed.
Be prepared to draft at a minimum of 3 contracts. It never seems to amaze me when the first draft comes back a week later with items the clients never mentioned prior. So, when this happens, take a deep breath and examine each request and correction then proceed.
Remember, this is not a competition, so it’s not about winning it’s about a fair contract. Be positive and prepared. Always determine what the items listed in the contract will cost you and the cost to the clients. Determine a value, and be able to explain why.
Final Draft
When your contact is complete and agreed upon, you might find yourself still waiting on the contract to be signed. Like I mentioned, clients will prolong this but there is a simple solution.
Your best option is to schedule a meeting to sign and deliver the completed contract. It also give you the much needed one-on-one time that all your clients deserve.
Contract Conclusion
Always treat contracts like training documents. It’s a living document and flexibility is key. We all go through business changes and our part is to help and understand the obstacles our clients may be facing and how we can be more positive.
The reality is the contract keeps us partners one year at a time.