Maria Abe June 9, 2019 Service Agreement
The service agreement should include a statement of work, which identifies the project’s scope and the respective responsibilities of you and your client. Oftentimes, if conflict arises it’s because the scope wasn’t properly defined, which led you and your client to interpret scope differently. Watch out for scope creep!
Your company’s boilerplate service agreement should reflect the price structure that is most appropriate for your business. It should specifically state whether or not your company is compensated on a per-project (flat fee) basis or an hourly, weekly, or monthly fee basis. If you charge the same rates for all clients, then include these numbers in the contract; otherwise, you should leave blanks that can be filled in depending on your negotiations with each respective client.
Make sure that your form service agreement is as favorable to your company as possible and accurately reflects your company’s objectives. Note that the purpose of your service agreement is to have a form document (sometimes referred to as a boilerplate document) that your company can use on a regular basis every time it takes on a new client.
It’s customary for service agreements to include provisions with respect to the protection of confidential information. This includes the safeguard of your business strategies, client lists, supplier information, trade secrets, and so forth. Note that a client might request that you adjust the confidentiality provisions so that they’re applied mutually, which is usually acceptable so long as all of your employees, contractors, and everyone else involved in your business handle all client information in compliance with the provision.