New Feature... The Best Practices Series!

Best Practice #2: Why Sign a Service Contract with a Penalty Clause? Some Vendors will tell you that in order to get lower preferred rates you will need to be on a service contract. Others will tell you the penalty clause is a "corporate mandate" and that neither of these can be changed. Remember, you are the customer. If they want your business, they will adjust the agreement. Sometimes an assist from legal can help your policy to sign anything with a penalty clause. We've found in most cases, agreements can be adjusted accordingly.

Things to ask for in a service agreement:

• Ask for a 30 Out Clause
• Ask for a no payment penalty
• Ask for preferred rates
• Take of the "handcuffs"
• Vendor should earn your business everyday!

If service levels drop, you should be able to shop providers within 30 days. Also, beware of the "Contract Auto Renewal" language, as it can handcuff you another 1-3 years (exception being agreements with a 30 day out clause). For case studies or to learn more about the Best Practices, email us at info@cooksecuritygroup.com or if you are interested in a service agreement comparison, click here!

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