Identify the customer and service provider. Include contact information for both parties.
Describe the services being provided. Include an accurate and clear description of exactly what the service provider is going to do for the duration of the agreement. The more detailed your description is, the less chance there will be misunderstandings later.
For example, if the contractor is hired to install an internet modem in a customer's home, they might include that they are responsible for providing the modem and affixing it, running ethernet cables through the property, and handling quality assurance to make sure the unit works properly.
An accurate description of services gives the customer a clear idea of what to expect and lets the service provider know what is expected of them.
Outline a payment schedule. Determine the compensation details for your arrangement, including:
- Pay rate
- Tax rate
- Payment schedule
- Who will pay work-related expenses (e.g. materials or travel)
- Penalties for late payments or non-performance
Establish terms about confidentiality, non-solicitation, and non-competition. You may or may not choose to include terms addressing confidentiality. This will depend on whether the client prefers to add these clauses to protect sensitive information about themselves or their business.
Non-solicitation and non-competition clauses are also up to the customer and whether he or she wants to prevent the service provider from unfairly competing or soliciting business for a specified period of time.
Address ownership of materials. It is best practice to specify which party will retain ownership rights of the materials produced during the work contract. Rights may be retained by the service provider or be exclusively granted to the customer depending on what is agreed upon in the contract.
Personalize your Service Agreement. LawDepot's Service Agreement offers users the option to include additional clauses. Some people might address things like indemnity, return of property, liability, or legal expenses in this section. Adding these terms is optional and depends on your personal situation.