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The Transformation Map of the Security Industry (ITM) was published in February 2018. The vision of the ITM is to create a vibrant, technologically advanced and efficient security industry that will provide Singapore with better security and better jobs for Singaporeans. To achieve this, one key strategy is to change the industry by leveraging technology to rely less on manpower.

This Guide on Outcome-Based Security Contracts is a step towards achieving this dream. This aims to provide step-by-step guidance to service customers on how to write an outcome-based contract. This is necessary because security firms can develop and produce more efficient approaches that combine resources, software and processes when customers negotiate for services based on security results rather than a fixed number of headcounts. This can create better opportunities, working conditions and terms of employment for security officers. Business customers also benefit from higher quality services and lower long-term prices.


1.1.Outcome-Based Contract (OBC) refers to product purchasers defining contract requirements in terms of expected performance levels, rather than output levels. Modern output-based contracts, on the other hand, define fixed amounts of resources (e.g. personnel, equipment) the service provider wants to provide.

1.2.Compared to contracts based on performance, OBCs can lead to better solutions. OBCs empower providers to provide creative security solutions that use less resources to meet desired safety objectives, utilizing software and re-designing work processes. OBCs can increase cost efficiency and reduce reliance on manpower. Due to rising labor costs, it is more affordable for consumers in the long term.

1.3. The guide refers to buildings and grounds being guarded by security services. This offers guidance and instructions for buyers on how to implement OBCs, from tender preparation to bid evaluation. Buyers may tailor their own specifications to the guidelines and specifications.

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  • Outcome-Based Specification
  • Outcome-Driven Performance
  • Quality-Focused Evaluation
  • Productivity Enhancement Framework
  • Adaptive Pricing to Regular Contract Reviews

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