What Is a Service Contract?
Think of a service contract as a business agreement between a client and a contractor the covers whatever service is to be provided within a specific period of time. The document legally binds both parties to ensure that they fulfill their obligations to one another, meaning that the contractor does what the client wants and the client provides sample compensation for the job.
How to Create a Service Contract?
1. Start With the Identities of the Parties
Any kind of service contract or service agreement must begin with the identities of the parties involved. You will need to provide their complete names as well as which one is the contractor and which one is the client. If deeded necessary, include any additional details such as the job position title and the company name of the client.
2. Provide Details on the Service Being Provided
Next is for you to point out how the contractor will provide the service. For example, if you're making a maintenance contract, then you will need to cover the properties that are involved as well as descriptions on how the service will be performed. Also, make sure to cover the time period in which the service will be provided. Point out the exact date that it's expected to be started on and the end date. Lastly, there has to be a list of the equipment that will be used and who will be in charge of providing it. Be sure that each one contains its full legal description when writing them down.
3. Include Details Involving Payment
The contract must point out how exactly the client will compensate the contractor for the service provided. Determine whether the price is fixed or if it depends on the amount of work done. You must then point out the exact amount that has to be paid and when the payment is due. Also, do not forget to include the method of payment that the client is allowed to use. Know that the more options provided, the higher the chance of the client paying on time.
4. Write Down the Termination Clause
This is very important so that either the contractor or the client will be able to terminate the contract without breaking any of the agreements illegally. Point out exactly how one may exit the business contract by providing them with the proper procedures on how to do so.
5. Point Out How Damages Will be Handled
There is always the risk of property damage when conducting certain services. So you will need to point out who will be held responsible for whatever damages occur and how they will be compensated. Make a list of every possibility and provide a proper description of how they should be handled.
6. Have the Contract Signed
Lastly, you will need to create spaces where both the contractor and client can place their complete names and signatures. The purpose of this is to confirm that the parties involved have agreed to the terms within the contract. Also, include the exact date in which the legal agreement was signed.