Service Agreement Information
A Service Agreement, also known as a Consulting Agreement or Service Contract, is a document used to define the terms of a business relationship between a service provider and a customer.
Who Should Use a Service Agreement?
If you are providing services to a customer, such as repairs, installations, landscaping, etc., you should use a Service Agreement to clearly define the terms of your services and pricing to your customer.
As a customer, if your service provider does not have a Service Agreement, you may wish to provide one in order to avoid any future complications that may arise due to a lack of a formal agreement.
This Service Agreement may be used in all Canadian provinces and territories.
Service Providers in a Service Agreement
A Service Agreement can protect a service provider in a number of ways. To complete a Service Agreement, a service provider should consider the following:
- When do I want to be paid?
- What amount should I be paid?
- What is my time estimate for this project?
- Will the customer be charged a penalty for any late payments?
- Do I want to retain ownership of my intellectual property?
- Do I want my expenses to be covered by the customer?
- Do I require any resources, such as tools, office space, or equipment, from the client?
- Will sales tax be included in the price?
- What will happen in the event of a dispute?
Customers in a Service Agreement
A customer in a Service Agreement should ensure that they are fully protected and in agreement of the terms by deciding:
- If you will reimburse the service provider for approved expenses.
- What kind of payment schedule works best for you.
- Whether you would like to include a non-compete, confidentiality, or non-solicitation clause for the service provider to adhere to.
- If you would prefer to include terms regarding either indemnity or insurance.
- If you will penalize the service provider if they do not meet deadlines.
- If any additional compensation will be provided.
- How much notice is required to end the contract early.