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How to Make a Service Contract in Google Docs
An article by the Harvard Business Review highlighted the importance of trust between two parties entering a business contract or agreement. They need to clearly define the basic terms of the transaction, to ensure that they both get what they need from the deal. The same goes for contractors agreeing to render certain services. To get started on your own service contract, you may follow the steps we’ve prepared below.
1. Identify the Scope of Work
Begin by clearly outlining the work that is expected from the contractor. Be it for construction work or software maintenance, it’s important for both parties to know the specific deliverables the transaction requires. You may refer to the proposal or plan that the client and the contractor agreed upon.
2. Determine All Applicable Terms
After you’re done with the scope of work, look into how comprehensive you want the contract to be. If it’s necessary, consult with a legal representative or choose a suitable template to ensure that you include all terms that are applicable to your service agreement.
3. Finalize the Payment Conditions
All services rendered require their just compensation. For your contract, determine the specific payment terms and conditions that are agreeable for both the client and the contractor. Set the amount and schedule, and make sure the document specifies how the payment will be conducted.
4. Outline Concrete Steps for Dispute Resolution and Termination
Both parties have to decide on the process that will apply in the event of a contract breach. Decide who will be the mediators, and what kind of legal consequences certain violations will have. You also have to set a deadline for notices and resolutions. In case a dispute cannot be resolved, set the conditions for contract termination.
5. Review and Sign
Make sure to review all the details before you consider your contract final. While it’s important to have the document prepared on schedule, it’s also vital that you strengthen the terms and conditions applicable to the services required. Afterwards, ensure that both parties are able to sign and have a copy of the document.
What is a service contract?
A service contract is a document that outlines the work a contract has to perform for a client. It includes the scope of the work, the terms and conditions of the payment, and which legal consequences apply to the agreement.
What are the requirements of a valid contract?
When is a contract legally binding?
A contract is legally enforceable if it explicitly states the state or federal laws that govern the agreement. If there is a violation to the services rendered, the payment terms, or any other conditions, any of the parties may seek arbitration to resolve the breach or seek compensation.
What are the different types of contract?
1. Fixed Price Contract
2. Cost Plus Contract
3. Time and Material Contract
4. Unit Pricing Contract
What is the difference between a contract for service and a contract of service?
A contract for service is between a client and an independent contractor, for services to be performed within a specific time and project. A contract of service, on the other hand, is between an employer and an employee.