Understand the contracts are won and lost frequently for many reasons aside from poor customer service, sometimes the client goes out of business. Sometimes a security company is operating at a loss and is not able to balance books or attend a rate increase from the client necessary to swing it back into profitability. Other causes include the client finding a security company that offers a cheaper rate for the same service you're providing, regardless of who terminates the contract, and the reason of it. Here's the process for service contracting. Let's assume that after a series of break ins into his BMW dealership, john decides that he needs a security company to protect the premises and reduce the risk of breakings and associated damages. JOHN then goes ahead and post the request for qualifications on special contracting websites such as mercs or others.

The request for qualification or RF Q is almost like a pre screening process by which john can request interested companies to submit their qualifications and see if they match with john is looking for. So john can request that only companies that have experienced protecting dealerships can apply. What this does is it helps narrow down John's search for the right company. Next, as john receives five RFP responses. JOHN posts the Request for Proposal RFP. The five companies that have submitted their FAQ initially have an opportunity to submit proposals on how they're going to protect John's dealership and at what cost.

The RFP responses are very detailed, and they include hours of work, placement of guards, introduction of security system etc. JOHN can and is encouraged to invite companies for site tours so that they are better able to understand the requirements of the facility and to submit a plan as realistic as possible with a realistic price once all RFP responses are in. JOHN will then be selecting the company and awarding the contract to it. Both the RFP and RFQ processes are confidential in the john is not able to publicly disclose the details of qualifications or proposals of contractors and he's not able to do so to the competing companies themselves.