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Procedure for executing security services contracts

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Consultant # 1370
Consultant # 1370
Lawyer
Ukraine / Kyiv

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Publication date: 08.07.2024

Procedure for executing security services contracts
 

Security services are an important component of ensuring the safety of citizens and protecting their property. The growing demand for security services necessitates detailed legal regulation of the relationship between customers and providers of such services. Execution of security services agreements is a key stage in establishing these relations. This article will examine the procedure for executing security services agreements in Ukraine, the main requirements to the content of the agreements, the rights and obligations of the parties, as well as the procedure for concluding and performing such agreements.
 

Legal and regulatory framework
 

The legal regulation of security activities in Ukraine is based on the following key legal acts:
 

TheLaw of Ukraine "On Security Activities":
 

  • This law defines the legal framework for the operation of security companies, establishes licensing requirements for security companies, and regulates the rights and obligations of security guards.
     

Civil Code of Ukraine (CCU):
 

  • The CCU contains general provisions on the conclusion of contracts, defines the rights and obligations of the parties in contractual relations.
     

TheLaw of Ukraine "On Protection of Consumer Rights":
 

  • The Law regulates the relationship between consumers and service providers, establishes consumer rights, service quality requirements and consumer protection mechanisms.
     

Code of Administrative Offences (CAO):
 

  • The CUAO provides for liability for administrative offences related to the provision of security services.
     

Key elements of a security services agreement
 

A security services contract is a bilateral agreement that defines the rights and obligations of the customer (consumer) and the contractor (security company). The main elements of the contract include:
 

Subject matter of the contract:
 

  • The subject matter of the contract is the specific security services that the security company undertakes to provide. These may include physical security services, property protection, cargo escort, installation and maintenance of security systems, etc.
     

Parties to the contract:
 

  • The contract shall specify the full names and details of the parties: the security company and the customer. If the customer is a legal entity, its legal form and registration details are also specified.
     

Obligations of theparties:
 

  • The contract defines the security company's obligations to provide quality services, comply with security standards, and ensure confidentiality. The customer undertakes to pay for the services in a timely manner and provide the necessary information for the performance of the contract.
     

Cost of services and payment procedure:
 

  • The contract specifies the cost of security services, the procedure and terms of payment. It can be a fixed amount, hourly payment or a combination of both. Advance payments or additional costs may also be provided for.
     

Theterm of the contract:
 

  • The contract defines the term of validity, i.e. the period during which the security company undertakes to provide security services. The term may be fixed (a specific date) or indefinite (until the obligations are fulfilled).
     

Procedure for termination of the contract:
 

  • Terms of termination may be provided for in case of non-performance or improper performance of obligations by one of the parties, as well as for other reasons. Procedures for notification of termination and settlement of mutual settlements are specified.
     

Liability of the parties:
 

  • The agreement defines the parties' liability for non-performance or improper performance of obligations. This may include penalties, damages, and compensation for non-pecuniary damage.
     

Dispute resolution procedure:
 

  • The contract specifies the procedure for resolving disputes that may arise between the parties. This may include mediation, arbitration, or judicial dispute resolution.
     

Procedure for concluding a security services agreement
 

The procedure for concluding a security services contract includes several stages:
 

Preliminary discussion of the terms of cooperation:
 

  • The security company and the customer conduct a preliminary discussion of the terms of cooperation, determine the scope of security services, discuss the cost and payment procedure, the term of the contract and other important aspects.
     

Preparation of a draft contract:
 

  • The security company prepares a draft contract for security services, taking into account the preliminary agreements with the customer. The draft contract must comply with the requirements of the law and contain all the necessary elements.
     

Acquaintance of the customer with the draft contract:
 

  • The draft contract shall be submitted to the customer for review. The client has the right to make suggestions and comments to the draft contract.
     

Agreement on theterms of the contract:
 

  • The security company and the client agree on the terms of the contract, taking into account the client's suggestions and comments. If necessary, amendments are made to the draft contract.
     

Signing the contract:
 

  • After all the terms and conditions are agreed upon, the contract is signed by the security company and the client. The contract may be signed in two copies, one for each party.
     

Provision of security services:
 

  • After signing the contract, the security company starts providing security services in accordance with the terms of the contract.
     

Peculiarities of execution of a security services agreement
 

The execution of a security services contract has its own peculiarities, which are as follows:
 

Ensuring security:
 

  • The security company is obliged to ensure the security of the protected objects in compliance with the established standards and legal requirements. This includes the use of modern security equipment, professional training of security guards and control over their work.
     

Confidentiality:
 

  • The security company is obliged to ensure the confidentiality of information received from the customer during the performance of the contract. Disclosure of confidential information without the client's consent is a violation of professional ethics and may result in liability for the security company.
     

Informing the customer:
 

  • The security company is obliged to regularly inform the client about the progress of the contract, provide the necessary information and advise on security issues.
     

Compliance with thedeadlines for fulfilment of obligations:
 

  • The security company is obliged to meet the deadlines for fulfilling its obligations under the contract. Failure to do so may result in liability for the security company and negative consequences for the client.
     

Dispute resolution:
 

  • In the event of disputes between the security company and the client, they should be resolved in accordance with the procedure stipulated in the contract. This may include mediation, arbitration or court proceedings.
     
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