What is a Service Agreement?
A service agreement is a form of a written contract that binds two parties in which one promises to provide a specific type of service to the other. It is also meant to depict the terms of the service, pointing out all of the details concerning how the job will be done as well as what both parties are obligated to do for one another. A signed agreement ensures legal protection for both the contractor and client and ensures that they are both on the same terms.
How to Create a Service Agreement
1. Identify Both the Client and Service Provider
Even simple agreements will be required to point out the identities of those who will be involved. This means that you are going to have to write down their complete names as well as pointing out which one is the client and which one is the service provider. If you think it necessary, include additional details such as the job position title of the client, his/her address, and the company that he/she represents.
2. Include the Contact Information of Both Parties
This is a must as both must be able to communicate with one another to ensure that the service is done in a manner that meets the client's expectations. Be sure to provide both their phone numbers as well as their email addresses to ensure that they have more than one means of communication. Also, make sure to maintain the confidentiality of this sensitive business information.
3. Describe the Service To Be Provided
You must provide a detailed description of the service that will be provided by the contractor. For example, if one is hired to conduct pest control, then the description on your contractor agreement must cover the different areas of the property that will be handled, what pests will be controlled and the methods that will be used. Also, point out what equipment or materials will be used as well as who will be responsible for providing them.
4. Outline the Payment Details
You will need to define whether the payment is hourly, a flat fee, or project-based. Then you will have to point out when exactly the contractor expects to be paid. Make sure that you write down the exact figures when it comes to the amount of payment and the exact date as to when the payment should be made. Include matters concerning late payments and how those will be resolved. Also, point out the payment schedule and methods of payment that the client is allowed to use.
5. Establish Legal Terms
You may include a confidentiality agreement, a non-competition agreement or even a non-solicitation agreement. These can further protect both the client and the contractor as it further establishes what it is that they can and cannot do during the duration of the contract.
6. Spaces for Signatures
Lastly, the legal agreement or contract must have spaces where both the contractor and the client may place their complete names and signatures. The purpose of having them is to show that the two have agreed to the terms and have completed their negotiations. Also, include the exact date in which the agreement was signed if both make the decision to do so.