Bidding and Winning Security Contracts: A Comprehensive Guide

Security Contract Terms to Know

Before we get into how to bid for security contracts and how to maximize opportunities, let’s get familiar with key security contract terms and definitions that constitute a successful contract.

SOW (scope of work)

A Scope of Work (SOW) outlines the formal agreement of the specific criteria of a contract between a business and the client. These are the foundation of potential jobs and provide an opportunity for your security business to assess the requirements against your resources.

These criteria include:

• Objective: Outline the job requirements and concisely summarize what your company will provide.
• Scope of Services: Describe the various services your company will provide in more depth than the objective statement.
• Schedule: timelines for work start and completion dates.
• Pricing: The price for each service and the cost of ongoing services. This includes fees.
• Key Assumptions/Dependencies: considerations and assumptions for the work to proceed.
• Approvals/Acceptance: How the work will be inspected and evaluated.

Service level agreement (SLA)

An SLA is a formal document created by the service provider to define the service provided and the expected level of performance by the service provider. These are a necessary part of contracts as they clearly lay out the expectations of both your business and your customer.

As they are agreements, both parties need to approve of the requirements and expectations.

Indemnification clause

Indemnification clauses hold one party liable for damages to property or people. These clauses can make your company liable for damages, even damages that had nothing to do with your services.

If indemnification clauses are part of a contract, ensure it’s limited indemnification: this holds you responsible for the direct actions of your crew but not for the actions of outside parties or clients. These clauses also affect insurance; some policies won’t cover indemnity clauses on security contracts. Be sure to protect your team and company before signing anything.

Termination clause

This outlines the timeline to end a contract and the modes of contact required.

Types of Security Contracts

Depending on the industry sector your business covers, there are various types of contracts. Some overlap, offer different contract term lengths and require particular resources and crew.

Technology-based Security Contracts

Technology-based security contracts involve the installation, maintenance and use of security technology and software, often in tandem with traditional security services. As technology develops and security systems become more accessible, there’s a lot of flexibility in clients and terms.

Consulting and Risk Assessment Contracts

Your security contracts can cover the first phase of the process with consulting and risk assessments. Consulting can be an excellent and lucrative market if you’re looking for a business niche and have wide knowledge/expertise. These can be on a short or long-term basis.

These security contracts can be for any industry but are particularly important in the commercial, medical and industrial sectors.

Commercial and Residential Contracts

Protection of commercial and residential properties is big business as people seek to protect their property and investments. These usually require a combination of technical services and security teams.

Example of a Security Contract

Your security company and your customer will each be represented and those parties will agree to and sign the contract.

As mentioned in what may constitute a contract, many points will need to be covered, such as scope of services, service term length, pricing, insurance and more.

Finding Security Contracts for Bid

Finding contracts and tenders to bid for can be an excellent way to build up your security business’ reputation, especially when you’ve just established yourself.

Getting these contracts at first can be challenging, especially if you’ve just established your security business. Gaining a customer base takes time, but plenty of options exist to get your name and business out there.

Marketplaces

Marketplace in this case can mean any event where goods/services are discussed and sold. For example, conferences, trade shows, exhibitions, fairs and more. As a security company, you have the benefit of being able to cover a wide variety of sectors, so take advantage of that flexibility.

Networking

You can build your networks through successful jobs, marketplaces, and your local community. Joining business associations and fostering local connections will build your name and reputation.

Networking isn’t just about professional networks. You already have a network: friends and family! Word-of-mouth, while fickle, is a powerful source of job leads. Organic growth comes slowly, but it’s vital!

Industry Connections

Strong industry connections and relationships can foster an organic customer base because trust is essential in security services. This doesn’t just include other industries: connections in the security industry are also important. One company can’t cover every tender they come across but could recommend security companies they trust.

Industry Publications

As mentioned above, this can cover your industry of choice or expertise. Advertising in industry publications with your scope of services, experience and testimonials will help you reach various potential clients.

Having your name and logo out there also makes you more recognizable for the tenders you bid for, and you can land security contracts thanks to a strong reputation.

Challenges in Preparing a Bid Proposal

It’s great when your company is invited to bid on tenders and possible security contracts, but every company faces some common challenges in the bidding process.

Understanding Client Requirements

Before you prepare bid proposals for security contracts, get to know your client and their requirements. A good tender will list these requirements, but sometimes, tenders need key information added. For instance, a tender could be for CCTV installation but mention nothing about maintenance services.

Review and understand what the client requires, as well as the resources, certifications and staff needed, so you can judge whether it will be a profitable security contract and within your scope of work.

Competitive Pricing

Pricing is a balancing act, and that’s true of security contracts and bids. Consider the market and current prices: By pricing too low, you could project that your company is cheap, which can be untrustworthy to some companies (and trust is vital in this industry!). Price it too high, and you won’t have a competitive offer.

With a solid cost management structure, you can assess your resources and profitability quickly and accurately and choose the right security contracts for your business.

Highlighting unique value propositions

Leading from this, pricing isn’t about the lowest cost possible, it’s about value. A unique value proposition (UVP) is a short, concise summary of what your company can offer relative to the bid. It’s a response to what the customer needs and what your company can provide to address them, including previous expertise/experience, certifications and your company’s strengths.

Time Constraints

Preparing bids takes time, and your business can’t reply to every tender.

Before starting the bid, review the scope of the work, your company's available resources, and whether the tender is worth it for your business. Not all security contracts will be profitable or fit your team; it’s better to notice those before spending time on a bid proposal.

If your security company spends too much time on administration and work processes, cutting into bid opportunities, it might be time to utilize field service management software.

Compliance with Regulations

Every job needs to conform to laws and regulations, and this is a must when considering possible tenders and security contracts. Aside from licensing, security contracts should outline the legal considerations for the services requested, such as privacy and data collection regulations.

Strategies for Winning Security Contracts

So you’ve got some pending tenders and are ready to prepare a bid; how can you stand out from the competition and win those security contracts?

Several strategies will maximize each bid, and even if a bid doesn’t result in a contract, they’ll improve your business reputation.

Leveraging emerging technologies

Technology continues to improve and evolve, and by utilizing this tech, you can demonstrate your skill and bring more value to a security contract. There’s a huge demand for qualified security system installation and maintenance at all levels, so it’s worth it to be familiar with the latest in tech.

It’s not just about security systems; by utilizing field service management software like Simpro, you can speed up your work processes with software developments and apps tailored to your industry.

Provide Top-Class Customer Service

Trust and professionalism are vital in the security industry, and you can demonstrate these values before you’ve even won security contracts through your customer service and communication. Utilizing customer relationship management tools and effective work orders to deliver on time and on budget.

Be prompt in answering customer inquiries, ensure you have a website that answers common questions and descriptions of your services for leads to search, and, importantly, address customer concerns and complaints.

Demonstrate Expertise And Experience

Past jobs and experience are the best advertisement for your professional values and quality services. Ensure you have evidence of past successful jobs on your site, in advertising material, and on business pages. These can include reviews and testimonials from customers and previous businesses protected.

Build Long-Term Relationships With Clients

If you’ve run a security business for any length of time, you know the necessity of client retention. The costs of finding new customers and clients are far more expensive than the cost of a returning client. The key to getting security contracts is having a strong relationship with clients and converting new customers into your base.

That’s not to say your business shouldn’t seek new clients; building your customer base takes time and providing quality service. How you treat new and returning clients will establish your reputation and set up your business for long-term success.

Customizing Solutions

Replying to tenders can be a long process, and it can be tempting to list all your services and options when preparing each bid to save time. (Besides, businesses will want to know, right?)

Securing security contracts means responding with why your security company is the right fit. Each tender is different and will be from different sectors, such as residential, commercial, hospitality, medical, industrial and more. A boilerplate response might be detailed, but it won't be considered if it doesn’t directly answer the client's needs.

Secure your security business success with Simpro

With the right security contracts, customer relationships and professional experience, your security business will have great potential to grow. Take advantage of these opportunities and your business potential with industry software from Simpro, designed for field service businesses to maximize your efficiency.

Outdated, inefficient work processes can hold your business and crew back: get growing with Simpro and secure your security business today!