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Service Level Agreement For Consultants

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Marilyn Ries June 8, 2019 Service Agreement

Insurance clauses are not necessarily standard, but they are not unusual. Customers may wish to specify what insurance is required, and in what amounts, for comfort that the service provider can meet its indemnity obligations. If the agreement requires insurance, make sure the specified coverage and amounts are reasonable ($1-2 million general liability and errors and omissions should be sufficient in most circumstances). Review the insurance provisions carefully, and seek feedback from the insurer.

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Clearly set out the invoicing and payment terms. The service provider should not wait until the end of the assignment or agreement to invoice the customer, but should bill on a monthly basis or upon achieving certain milestones. Billing on a timely basis will help cash flow and establish expectations. Requiring an up-front deposit will also help with cash flow, and will help screen out customers who are unlikely to pay in the end. Also, be clear about what additional expenses (third-party assistance, travel, accommodation, etc.) the customer is expected to bear. The service provider should require payment within, for example, 30 days following the invoice date.

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This is important for two reasons. First, those agreements help the service provider in its day-to-day business of providing services and getting paid. Second, agreements that protect the service provider’s business and assets make it a more desirable target for investment or acquisition.

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The insurance, taxation and superannuation obligations of the parties must be specified. Generally you want each party to take care of these themselves. It is highly recommended that parties agree and document the terms and conditions of their relationship in a service agreement before the service provider starts to provide the services to the principal in order to minimise the risk of disagreements down the track.

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service level agreement template consulting service level agreement for consultants A master service agreement is when two parties agree to a contract that will settle most details and expectations for both parties. It`ll state what each group has to do to honor its end of the bargain. It`ll also show which services apply in the master service agreement. The goal of a master service agreement is to make the contract process faster. It also should make future contract agreements simpler. A master service agreement (MSA) is also called a service level agreement (SLA).

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