Document service expectations in writing: Service Level Agreement
What is a Service Level Agreement?
A Service Level Agreement (SLA) is a document that defines the obligations that a service provider and a client have to each other. Usually, the document outlines key details of the service provided, such as the service level (minimum quality of service as agreed upon by the parties), service credit, and the expected incident response times. The agreement also includes key performance Indicators, which serve as a benchmark for the parties to know that the service is being provided as agreed.
A Service Level Agreement can stand on its own, or it can be used as a supplement to a Master Services Agreement or a Statement of Work.
When to use a Service Level Agreement:
- You would like to set a benchmark for service quality.
- You would like to agree to a certain amount of uptime.
- You would like to set expectations for customer support.
Sample Service Level Agreement
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This (this "Agreement") is made effective as of , by and between (the "Service Provider"), of , , , and (the "Client"), of , , . The Agreement provides for services. The Agreement is part of a Master Service Agreement (the "MSA") The is intended to describe the levels of service agreed upon by the Service Provider and the Client, and the obligations of both Service Provider and Client to each other with respect to the service level.
Services. The following are the services covered in this Service Level Agreement: . Any services described in the Master Service Agreement
Client Obligations. In return for the services described in this Agreement, the Client is under the following obligations to the Service Provider: .
Service Provider Obligations. In turn, the Service Provider is under the following obligations to the Client.
Service Levels. The following is a description of the service(s) covered in the Agreement. The Duration indicates the time period that the Service Provider has to provide the service. The Service Level indicates the minimum standard of performance for the service. The Service Credit indicates the amount of fees to be credited to the Client should the Service Provider fail to meet the service level.
Service:
Duration:
Service Level:
Service Credit:
Service Credits will be disbursed on the invoice following the Service Level failure or within thirty days of Service Level failure. The Client shall not have any other remedy for Service Level failure than the credits specified in this Agreement.
Response Time. The parties agree on the following deadlines for the Service Provider to respond to notice from the Client with respect to any service-related issue.
High Priority Issues: the Service Provider will respond within from receipt of notice from the Client for the following high priority issues:
•
Medium Priority Issues: the Service Provider will respond within from receipt of notice from the Client for the following medium priority issues:
•
Low Priority Issues: the Service Provider will respond within from receipt of notice from the Client for the following low priority issues:
•
Key Performance Indicators. The following section describes "Key Performance Indicators" (KPIs), which are measurements not subject to Service Credit. Each service has a time period by which the Service Provider shall meet the KPI, and a description of the KPI.
Service:
Time Period:
Key Performance Indicator:
• Service Provider has failed to meet a service level more than once.
Signatories. This Agreement shall be signed by and by and is effective as of the date first above written.
Client:
| By: | Date: |
on behalf of
Service Provider:
| By: | Date: |
on behalf of
