I have been an independent security consultant for over 27 years. I have worked with literally hundreds of different security system integrators, ranging from one-man shops to the largest security systems integration companies in the world.

Every once in a while, I come across a security integrator that really stands-out. These integrators seem to exceed customer expectations in every way and set the standard for professional, high-quality security and surveillance installation and service work. I call these integrators “world-class”, and enthusiastically recommend them to my clients.

Here are some of the characteristics possessed by a “world-class” security systems integrator:

During the sales process

1. Really listens to the customer’s needs before trying to sell them anything.
2. Talks to the customer on his level and uses a minimum of technical jargon.
3. Honestly explains the strengths and weaknesses of the product he is selling.
4. Gives the customer an itemized quotation so that he fully understands what he is buying.
5. Truthfully explains the ongoing maintenance and upgrade costs of the system he is proposing.
6. Gives the customer a realistic idea of how long the system is really going to last and how quickly it may become obsolete.
7. Has the courage to tell the customer that what he is asking for really won’t solve his security problem.
8. Is quick to refer the customer to other service providers when they may be better able to meet the customer’s needs.
9. Doesn’t try to sell the customer something he doesn’t need just to make a sale.

During the installation process

1. Fully complies with the agreed upon specifications or contract.
2. Sends only well-qualified technicians to the jobsite to perform the installation work.
3. Is respectful of the customer’s workspace; causes minimum disruption, cleans up messes as they are made.
4. Regularly keeps customer informed as to the status of the installation so that there are no surprises.
5. Keeps schedule commitments and finishes the installation on time.
6. Provides an adequate level of user training until the customer is fully comfortable in using the system.

After the sale

1. Is as quick to return calls and emails to the customer as they were before the sale.
2. Has a service organization in place so that service calls can be handled promptly and professionally. Has more than one person in their company who can work on the customer’s system.
3. Takes full responsibility for the problems the client is experiencing – doesn’t try to blame problems on the manufacturer or other parties. Stands behind their product even if it ends up costing them money.
4. Honors warranty commitments even if customer may be unaware of them.
5. Lets customer know of expected costs of repairs before they are performed.
6. Keeps customer informed as to the status of their service request. Tells customer what they are working on, when problem is solved, and what they found.
7. Calls the customer back periodically to check-in to see how things are going.
8. Keeps customer informed of system upgrades and enhancements. Doesn’t wait until last minute to tell the customer that their system is at “end-of-life”.

The difference between top-performers and mediocre performers is often only in the way that they handle the small details. Simple things done repeatedly can place a company in the top 5% and allow it to become a “world-class” security systems integrator.

Many security systems integrators are baffled when it comes to working with an independent security consultant. Many integrators feel that a security consultant gets in the way of their relationship with the customer, and that the sole purpose of the consultant seems to be to make their life more difficult.

Security consultants are a fact of life on most large projects, and security integrators who wish to pursue the larger projects must eventually work with a consultant, whether they like it or not. Smart integrators learn to work with security consultants, not against them.

Here are a few tips that security systems integrators should consider when working with independent security consulting and design firms:

Reach Out to Consultants in Advance

Often, the first time that a security consultant hears from a security integrator is when a specification that the consultant has written goes out for bid. Smart integrators reach out to the consultants in their area in advance, letting them know what types of projects they do, what product lines that they carry, and what types of special services that they may offer. After making the initial contact, check in with the consultant periodically to let him know what projects you are working on, what new product lines you have taken on, etc.

Don’t Bid on Projects That You are Not Qualified For

Consultants prefer to work with security integrators who are well-qualified and who have previous experience with projects of a similar size and type. It is highly unlikely that a security consultant will give you your “first big break”.

If the largest project you have completed to date is $35,000, don’t expect the consultant to recommend you for a $3,000,000 job. If the consultant has specified that the integrator be an authorized dealer for specific products, don’t expect for this requirement to be waived just so you can bid on the project.

Understand the Consultant’s Need to Keep Secrets

Security consultants are often brought in at the earliest stages of a project and are often privy to much information that they can not reveal to the integrator. Regardless of how close you are to a consultant, don’t expect him to tell you about projects in advance, tell you about the practices of your competitors, furnish you with early bid results, or give you information beyond what is publically available to other bidders. You wouldn’t want the consultant revealing secrets about your company – don’t expect him to tell you what he knows about your competitors.

Read and Follow the Consultant’s Bid Documents

The bid documents prepared by the consultant may represent hundreds or even thousands of hours of design and planning work. Yet, many security integrators just skim over the documents, say that the design is flawed, and begin to prepare their bid based on what they think is best. This mindset can cost the integrator the job if his proposal is rejected for being noncompliant. Worse yet, the integrator’s bid may be accepted, but disputes may arise during the construction phase when the owner finds out that what the integrator is installing doesn’t comply with the consultant’s bid documents.

Smart security systems integrators will:

• Thoroughly read and study the bid documents, including all drawings and specifications.
• Understand that your role is to execute the consultant’s design, not redesign the entire project based on your own ideas. This can be a tough role to adjust to, particularly if you are used to doing your own design work and have strong opinions about technical matters. If you are not able to make this adjustment, stay away from consultant designed projects.
• Assume that there is a good reason behind everything shown in the bid documents. Raise questions during the bid phase when you see something that looks like an error, but don’t challenge things that will work but are different than the way that you would normally do them.
• Assume that you will be required to comply with every part of the bid documents and price your bid accordingly. Don’t assume you will be able to omit items or make changes later unless you have received a written addendum approving these changes prior to bid date.
• If you have a better, cheaper, or more creative way of doing things, ask if you can submit two bids: one that is fully compliant with the consultant’s bid documents, and another based on your own ideas. But, in order for this strategy to succeed, your alternative proposal must offer significant cost and other advantages to the owner, not just accommodate you.

Start Projects Out on the Right Foot

Most bid documents prepared by consultants require that product information data and shop drawings be submitted for approval prior to the start of the project. The bid documents usually have specific requirements for how these submittals should be prepared. Smart security integrators follow these requirements to the letter, demonstrating to the consultant that they take the bid documents seriously. This is a great way to start the project off on the right foot.

Make Sure that Everyone on Your Team Knows the Rules

In many cases, a salesperson or estimator at the systems integration company will use the consultant’s bid documents to prepare the bid, but once the project starts, these documents are put on the shelf, and never make it to the job site. Often, the project manager and field technicians are not even aware that this is a consultant designed project and have never even seen the original bid documents.

Smart security integrators let everyone on their team know that this is a consultant designed project, and that there are specific contract requirements that must be complied with. This may mean that technicians will have to do things differently on this project, but things work better when everyone knows the rules in advance.

Communicate Often and Document Everything

Smart systems integrators communicate with the security consultant regularly, not just when there are problems or questions. A quick call or email giving the consultant an update on project status is greatly appreciated and should be done on at least a weekly basis throughout the project.

Any questions involving clarifications or changes to the bid documents should be submitted to the consultant in writing. Don’t wait until the last minute to submit a question; allow ample time for the consultant to review the situation and prepare a response.

Keep Your Commitments

Prepare a detailed project schedule in advance, and follow this schedule to the letter. If there is a major problem, or you expect to miss a scheduled completion date, let the consultant know well in advance. Show up on time for meetings and return calls and emails from the consultant promptly.

Prepare for the Final Acceptance Test

The end of the project is often the most stressful time for the security integrator. This is when the consultant will examine the project to make sure that all requirements of the bid documents have been met. Normally, an “acceptance test” will be conducted by the integrator and witnessed by the consultant. During this process, the consultant will identify any deficiencies and prepare a written punch-list of items that the integrator must correct prior to acceptance of the project.

Here are some things that the integrator can do to assure that the acceptance testing process goes smoothly:

• Prior to scheduling the test, have someone from your firm (preferably someone who was not actively involved in the project) thoroughly read the consultant’s bid documents again and then inspect the project to see that all requirements have been met.
• Prior to scheduling the test, thoroughly test all security systems to assure that they are complete and working properly. Problems with the security systems should be identified and corrected by your technicians in advance, not discovered for the first time during the acceptance test.
• Prior to scheduling the acceptance test, take one final walk-through of the project and visually inspect everything. Pay attention to details: missing screws, devices loose or wall or not level, cable not properly tied-down or not labeled, missing knockouts in electrical boxes, etc. Finding and fixing these items in advance keeps them off of the punch-list and saves everyone time. 
• During the acceptance test, provide an adequate number of technicians and all  tools necessary to conduct the test. Expect for the consultant to ask you to remove equipment covers and disconnect and reconnect wiring connections in order to test tamper switches and wiring supervision features.
• During the acceptance test, have the right people on hand so that all of the consultant’s questions can be answered. For example, if the consultant asks “How did you install the cabling to this camera?”, someone should be present who can answer this question. Saying “I dunno, the guy who ran the cabling ain’t here today…” isn’t an acceptable answer.
• During the acceptance test, don’t stop to fix problems encountered along the way. Once a problem has been identified, it should be put on the punch-list, and everyone should move on to test the next item. Don’t expect the consultant to stand around while you try to solve problems or finish uncompleted work. 
• During the acceptance test, don’t allow your technicians to get defensive about problems identified by the consultant. Often, a technician will question the necessity of doing something that was required by the specifications, but not needed in the opinion of the technician. This is not the time for a technical debate – if it’s in the specs, it needs to be done in order to satisfy the requirements of the contract. Have your techs do it regardless of their personal opinion about whether it is necessary.

End Projects on the Right Foot

Bid documents prepared by consultants typically require end-user training, and close-out documentation such as shop drawings. The bid documents usually have specific requirements for how these items should be handled, and again, the smart integrator takes these requirements seriously and fully complies. Close-out documentation should be submitted promptly at the end of the project. Don’t blemish an otherwise perfect project by failing to perform close-out tasks in a timely manner.

Meet with the Consultant After The Project is Complete

After the project has been completed and the dust has settled, arrange a meeting with the consultant to discuss how the project went. Ask the consultant to honestly tell you how your company performed, and to tell you ways in which your project execution skills could be improved. In turn, tell the consultant how you think he performed, and offer suggestions for ways in which the consultant could improve his bid documents or construction administration processes.

As the security manager for your company, you have just designed a new closed-circuit television system to observe your parking lots. You prepared a written bid specification, and submitted it to several security systems contractors in the local area. You conducted a pre-bid walkthrough with all the bidders to fully explain the system that you require.

It’s two weeks later and you have received three bids. One is for $140,000, one is for $120,000, and one is for $75,000. What gives? How can there be so much disparity in the bid prices?

The low bid of $75,000 is well below the $125,000 that you budgeted and you sure have a lot of places where you could use that extra $50,000. Should you accept the low bid?

As a general rule, a variation of 10% to 20% in security system bids is normal. Variations of greater than this sometimes occur, but a bid that is 50% lower than the next lowest bid should always raise a warning flag.

Most qualified security systems contractors pay about the same wages to their employees and usually pay about the same prices for their equipment. Although some larger companies purchase in volumes that allow them to receive reduced prices for equipment, this savings is often offset by the increased administration and overhead costs incurred by the larger company.

Large variations in bid prices or an unusually low bid can be caused by any one of the following:

• Contractors not proposing equal quality equipment. This is often occurs when there is no bid specification or when the specification does not clearly define the equipment requirements.
• Contractors not proposing same quantity of equipment. This most often occurs when the quantity of equipment is not clearly spelled out in the bid specifications or other design documents. If the specification says “provide cameras to view parking lots” and does not spell out the number of cameras or camera locations then this type of variation is almost certain to occur.
• Contractors not proposing same type of accessories. One contractor may be providing equipment with all available accessories, another may be providing a “bare bones” configuration. For example, one contractor may be providing environmental camera housings that include a sunshield, a heater, and a blower. The other contractor may only be providing a simple outdoor housing with none of these accessories. Unless accessory items are clearly called out in the specifications, major deviations in bid prices can be expected.
• Contractors underestimate or overestimate amount of installation labor required. This is the one of the most common reasons for deviations in bid prices. Estimating the labor required for any given installation is not an exact science and is highly subjective. Unlike other construction trades, there are no recognized industry standards for estimating the installation of a security system.
• Mistakes made in estimating. Bids are often put together hurriedly and under pressure. It is not uncommon for an estimator or salesperson to be finishing up the bid only hours before it is due. We have evaluated hundreds of security system bids and have found mistakes in a large percentage of them. Often when we evaluate a bid that is substantially lower than the others we find that the bidder has left one or more major cost items out of his or her bid.
• Contractors proposing different levels of after-the-sale support. Items such as training, system programming and configuration, and warranty service are not free and cost the contractor money to provide. Each contractors idea of what constitutes “training” may differ greatly. One contractor may be planning on hiring a professional trainer from the manufacturer to conduct formal classroom training, another contractor may be only planning on having one of his technicians spend a few hours with you briefly explaining the system. Unless requirements for training and other support services are clearly spelled out in the bid specifications, this can be a major cause of discrepancies in bid prices.
• Contractor deliberately underbids job (good motives). This is often known as “buying a job”, and can be done for several reasons. In some cases, a contractor is relatively new and wants to use your job as a “showcase” that he can use as a reference to obtain future jobs. In other cases, a well-established out of state contractor may want to establish a local office in your city and wants to get the job to establish a local presence. A contractor may also see the potential to do lots of future work with your company and may underbid this particular project in order to get his “foot in the door” with your company.
• Contractor deliberately underbids job (bad motives). There are a small number of unscrupulous contractors who deliberately underbid jobs with the intention of going after change orders in order to complete the job. These contractors are experts in finding weaknesses in your specifications and will take advantage of every ambiguity and omission. While much more common in the general construction trades than in the security industry, there are a few security systems contractors who take advantage of this technique, particularly on government jobs.

We recommend that you proceed with caution when evaluating an unusually low bid. There may be legitimate reasons why a bid is unusually low, and it is important that you fully understand these reasons before you enter into contract with the low bidder or dismiss the low bid out of hand. Here are a few suggestions for evaluating low bids:

1. Ask the low bidder and the second lowest bidder for a detailed, line-by-line itemization of their bids. The itemization should list quantities and types of equipment, manufacturer and model number, and unit cost for each item. Some bidders are hesitant to provide this level of detail, but it is the quickest way to identify discrepancies or omissions in bids.
2. Have each bidder provide an installation schedule that shows how they intend to complete the installation and in what time period. Make sure that the schedule indicates the number of installers and other employees that will be on site during each period of the installation.
3. If not clearly spelled out in the bids, have each bidder provide specific details about how they intend to provide training, system programming and configuration, and warranty service for this project.
4. Check references of low bidder to see if they have a demonstrated track record of completing projects of this size and type. Request financial statements to determine if low bidder has financial resources to perform a project of this magnitude.
5. If an obvious problem hasn’t been identified after having completed the steps above, arrange a face-to-face meeting with the owner or general manager (not just the salesman) of the company submitting the low bid. Be frank; explain that his company has submitted a bid that is substantially lower than the other bidders and that you would like him to explain how this is possible.
6. Consider retaining the services of an independent security consultant to evaluate your bid specifications and each bid proposal.
7. If everything checks out to your satisfaction, consider awarding the contract to the low bidder with the provision that he provide a performance bond for the project. This type of bond typically costs between 2% and 5% of the contract price and is a usually a good investment. The performance bond protects you in two ways. First, if a contractor has the ability to obtain such a bond, it is a good sign that he is experienced and financially solvent. Secondly, if the contractor defaults on the project, the bonding company will step in and pay to have the project completed by another contractor.

Service contracts are available for most types of electronic security systems, including closed-circuit television systems, access control systems, and alarm monitoring systems.

Service contracts are usually offered by the security contractor (systems integrator) that originally sold and installed the security system, although some contractors will also offer service contracts on systems that were provided by other companies.

Service contracts generally cover the costs of service and repair for a fixed monthly or annual fee.

Are service contracts a good deal for the consumer of a security system?

Before making this decision, a number of questions about the specific service contract being offered must be asked:

1. What types of service and repair does the contract include? All materials and labor? Materials only? Labor only?
2. What types of repair does the contract exclude? Many contracts exclude repairs caused by vandalism or “acts of god” (such as damage caused by lightning). Some contracts also exclude items caused by normal “wear and tear” or items that must be replaced on a regular basis, such as batteries or print heads in an ID card printer.
3. During what hours will the service be provided? Many standard contracts provide service only during normal working hours (typically 8am to 5pm Monday-Friday). Service calls provided after hours or on weekends cost extra.
4. How quickly will service be provided? Does the service contract guarantee a response within a certain number of hours after you place your call?
5. Does the service contract include preventive maintenance (such as the cleaning of exterior camera housings)?
6. Does the service contract include periodic tests or inspections of the system?
7. Does the service contract provide loaner equipment while yours is in the shop? Many types of security equipment cannot be repaired on-site and must be sent in to the factory for service.
8. Does the service contract include software upgrades? Most manufacturers of security management systems offer upgrades to their software on at least an annual basis. Does the service contract include the cost of providing and installing such upgrades?
9. What does the service contract cost?

It is the opinion of Silva Consultants that, in most cases, service contracts are not a good deal for the average consumer of security systems.

Our experience has shown that, over a five year period, most consumers will pay less to have service performed on a “time and material” basis than they would if they paid for a service contract over this same period. Furthermore, the exclusions found in most service contracts mean that the even the consumer with a service contract will have to pay out-of-pocket for many types of repairs.

In general, most security system equipment is reliable and requires little routine maintenance.

We estimate a ten-year life span for the average electronic security system. Most system failures will occur during the first year. These failures are due primarily to “infant mortality” of system components and/or improper installation. Repairs during the first year should be covered under the standard warranty offered by the security contractor.

If quality equipment was used, and it was properly installed, repairs during the second, third, and fourth year of system life should be minimal. Repairs during these years are often those caused by vandalism or misuse of the system; things typically not covered by a service contract.

Somewhere during the fifth to seventh year of system life, the system may need one or more major repairs. Although these repairs may be costly, you usually will be ahead financially if you pay for these repairs when needed rather than to pay for a service contract for the entire life of the system.

Another factor to be considered is obsolescence. Security systems, like most other types of electronic systems, become obsolete quickly. While most security systems will last ten years or more, they are often considered obsolete in five years or less. Most consumers will probably want to upgrade or replace their systems before major repair costs ever become a factor.

One advantage that a service contract offers is a predictable annual expense for system maintenance.

To gain this advantage without a service contract, we recommend that the consumer create a “security system maintenance account”. Funds for system maintenance should be deposited in this account on an annual basis. Repairs and upgrades to the system are paid for out of this account.

How much money should be set-aside each year? One method is to set-aside the annual amount that the service contract would have cost if you had purchased it from the security contractor.

Another method is to use a annual percentage of the installed system cost. The “installed system cost” is the total cost (materials and labor) that you paid to have the security system installed. We usually recommend an annual maintenance budget of somewhere between 5% and 10% of the installed system cost.

Our experience has been that clients who “self-insure” by setting up a maintenance account are usually far better off than those who paid for an annual maintenance contract. Often, there is enough surplus in the maintenance account to pay for system upgrades or to apply towards the replacement of the system when the time comes.

Here are a few additional things to consider:

• Service contracts are usually extremely profitable for the security contractor and provide a predictable revenue stream. There is great incentive on the part of the security contractor to sell you a service contract, even though it may not be in your best interest.
• Security contracts often “bundle” the cost of system maintenance along with the costs of system monitoring and inspections. It is difficult to see what you are paying for. Request that the security contractor provide an itemized breakdown of the costs of maintenance, monitoring, inspections and other related services.
• Some security contractors will “punish” those consumers who do not purchase a service contract. Punishment can include outrageously high hourly rates, poor response times, lack of telephone support, and excessive costs for parts and software upgrades. The best time to weed out contractors with this type of attitude is during the initial purchase of the security system. Indicate in your bid specifications that you may or may not purchase a service contract after the warranty period, and request pricing for service and repair on a “time and material” basis. Pricing should be guaranteed for a period of at least three years.
• Security contractors often attempt to sell you a service contract effective on the date that installation of the system is completed. They conveniently forget to tell you that the system should be covered by warranty during the first year. You should never have to pay for a service contract for the first year.
• Many security equipment manufacturers offer warranties that are longer than one year. Warranties of three years or five years are found on certain items. Some manufacturers even offer lifetime warranties. If you are paying for maintenance on a time and materials basis, be sure that you are not paying for something that should be covered by warranty. The best protection against this is to obtain copies of all manufacturers warranties prior to making final payment for the system installation.

Good project management is necessary to keep a security system installation project on schedule. Many security managers are responsible for managing security projects, yet often have little experience in managing a construction type of activity. Here are a few tips on how to keep your project on track:

• Make sure that your schedule is realistic. Security managers often have to fight long and hard with their company’s senior management to get approval to proceed with their security project. Once funding is obtained, these security managers often want to have the project installed “overnight”. Be sure to allow enough time to develop a bid specification and to obtain bids. Give your security system vendor enough time to design the project, obtain equipment, and mobilize their installation force. Setting completion dates that are too optimistic is the most common way to guarantee that your project will fall behind schedule before it even starts.
• Communicate your schedule expectations to the security vendors who are bidding on your project. Make sure that they know that you are serious about your completion deadlines. Often, the salesperson for the security vendor will be so anxious to obtain your business that he or she will agree to any schedule, realistic or not. These sales people figure that it is better to get your contract now, and apologize for missed deadlines later. If possible, talk with the security vendor’s operations manager or installation manager to obtain a confirmation that the completion date promised by the salesperson is achievable.
• Ask each bidder to provide a written project schedule. Ask what type of project management software that they use to create their schedules. A well-managed security systems vendor will probably use some type of professional project management software, such as “Primavera” or “Microsoft Project”.
• The security systems vendor cannot install equipment that he does not have. There are long lead times on many types of security equipment, particularly security lock hardware and some types of access cards. Make sure that the vendor has included equipment delivery times in his project schedule.
• When obtaining bids, be wary of the bidder who promises to complete the project in a much shorter time period than any of the other bidders. Most qualified security vendors buy from the same manufacturers, have access to the same type of labor forces, and have approximately the same installation backlog. If you have a bidder who claims he can complete your project sooner than anyone else, make him explain how this is possible.
• Establish the completion dates for each phase of the project in your contract with the security vendor. Be sure that your contract includes a “time is of the essence” type of clause. Have your company’s attorney review your contract to make sure that the completion dates established will be legally binding on the vendor.
• Make sure that the other players on your team also keep their schedule commitments. In many cases, the owner will be responsible for providing conduit, power circuits, lock hardware, telephone jacks, or other such items. In many cases, this work will be done by another contractor or by in-house facilities maintenance people. The project schedule should establish the dates that each of these items will be completed so that the security vendor can coordinate his work accordingly. Any delays in work performed by other parties gives the security vendor an excuse for not completing his work on time.
• Once the project has started, have regular project meetings with the security vendor to verify that the project is on schedule. Any problems in the schedule should be identified and corrected early in the project – not just a few days before the scheduled completion date.
• Should your contract include a penalty for delay? Many security managers are tempted to include a “liquidated damages for delay” clause in their contract that makes the security vendor pay a certain amount of money (such as $500 per day) for every day that the project is delayed. These types of clauses are tricky to legally enforce and should only be drafted by your company attorney. Delay penalty clauses can also discourage some qualified security vendors from bidding on the project and/or cause an inflation in the bid prices received.