The relationship between the client and security service providers is to a certain extent managed and regulated within the security compliance universe. These components are unfortunately mostly intended to grant protection to members of the public and consumers of security services and very seldom grant any protection to the service provider itself.
Security services must protect themselves legally
Security service providers must subsequently enter into written agreements with their clients in order to protect their interests within the relationship with their clients. The conclusion of a service level agreement between a security service provider and a client is not only necessary to comply with healthy business principles and a proper risk management system but is, in fact, required in terms of the code of conduct for security service providers. The code of conduct provides that
“(4) A security service provider must ensure, at his or her own cost, that the full contractual agreement with the client in respect of the rendering of a security service is reduced to writing and signed by or on behalf of the security service provider and that a true copy thereof is provided to the client without undue delay.”
Written agreements are not optional for security services
It is subsequently evident that a security service provider should not and may not enter into any business relationship with a client in the absence of a proper service level agreement. Failure to comply with this provision may very well result in an administrative fine being levied against the service provider by the Private Security Industry Regulatory Authority (PSIRA).
What to include in the service level agreement
A proper service level agreement provides for various issues such as:
- The time and method of payment
- The guard component
- Guarantees and warranties
- Restraining the client from appointing the service provider’s personnel
- Granting access to premises by security personnel
- Provisions pertaining to indemnity insurance and indemnities
- Breach provisions
- The period of the agreement
The aforementioned topics should undoubtedly not be considered to constitute all that is required to properly regulate the relationship between service provider and client.
Creating a legal safety net
Security service level agreements should be drafted by skilled and experienced legal professionals who have a proper understanding of the security industry and more particularly experience and historical knowledge of typical disputes between clients and security service providers.
Service level agreements should further be updated and reviewed on an annual basis to keep track of industry practices and changes to the compliance universe.
In conclusion
A properly drafted service level agreement may very well prove itself to be one of the most important documents within a security business.
Kindly contact our offices for professional and experienced advice pertaining to service level agreements.
