Profile information Account settings
Sign up Log in

MAKE YOUR FREE Services agreement

  • Make your document in minutes
  • Access from any device
  • Securely sign online
Make document

How to make a Services agreement

A service agreement is an agreement between two parties (customer and supplier) for the supply of services. It sets out the agreed terms between both parties for the provision of services.

Make sure you do things right when you prepare your service contract. This service agreement form sets out in clear and simple terms the process to be followed for the provision of services between two businesses.

This document is GDPR compliant.

Key terms of a service contract include the details of services to be provided, payment, how liability will be limited and ownership of intellectual property.

Use this contract template for services:

  • when a business wishes to supply services to another business
  • when a business requires terms and conditions to carry on its work
  • to ensure that the business has a legal right to receive payment for its services
  • to protect the position of the business

This services contract includes and covers:

  • the services provided
  • payment terms
  • service credits (optional)
  • change control
  • limitation of liability
  • confidentiality, IP, data protection and anti-bribery
  • ending the agreement

A service contract is needed when a business wants to engage another business' services. Creating a services agreement will ensure that both parties understand their obligations and protect the positions of both businesses in case of termination, or legal dispute.

Service agreements are long term agreements with the business partners, saying certain services will be offered to them in a defined validity period.

A service level agreement (SLA) would focus on the performance measuring and service quality agreed to by both parties and may be used as a measurement tool as part of the services agreement. It's best to have a separate SLA document because you can revise the SLA without having to revise the services agreement.

The written contract can just refer to the agreed SLA. The contract might then last for 2 years but the SLA may be reviewed quarterly, for example. This reduces the administrative burden of reviewing the contract too frequently.

A service level agreement (SLA) is a separate contract between a supplier and customer within a services agreement. It defines the level of service expected from the service provider such as the volume and quality of work, speed and efficiency. The purpose of having such a document is to establish a mutual understanding of the level of services to be provided. A service level agreement is not the same thing as a services agreement.

In this agreement, you can choose to attach a service level agreement as a schedule or describe the details and description of the services in the contract. Service level agreements tend to be unique to the situation. If you need help creating one Ask a lawyer.

In this agreement, the customer is under obligation to cooperate with the supplier of services in all matters. These include providing equipment and materials where applicable and obtaining necessary planning permissions before services begin. The customer must ensure that the supplier and its casual workers or consultants have access to the premises and facilities when required. The customer must also ensure that the suppliers know the health and safety rules and regulations that apply at the premises or where the services are provided.

You can specify the maximum amount that the supplier can spend in connection with the services without written consent under this agreement. Any expenses over the agreed limit have to be pre-approved by the customer in writing.

The customer does not need to provide a deposit before the supplier begins providing the service. In this document, it's optional, and if you decide to request a deposit from a customer, you can specify the amount of deposit.

You can choose to allow the parties to make changes to the rates. Any changes require notice, and there is a minimum time in which the rates cannot be changed and a cap on how much they can be increased. The parties may wish to provide for over-time and also for pro-rata days and attach these details to the Charges schedule in this agreement.

Both supplier and customer can limit their liability. However, the limit will reflect the sorts of services that are being supplied, the potential to cause loss and damage and what is common in the relevant marketplace. It must be reasonable to be enforceable.

This document allows you to specify the maximum liability of the supplier and the customer for each other's business losses.

There is no standard wording that should be inserted into the schedules as each one will be specific to the parties. Although, it is recommended that the following information should be included:

Specifications of Services

  • Customer's expectations of the quality, performance and value of the services to be provided.
  • Minimum acceptable standards of the service and the customer requirements that have to be met.
  • Output or performance-oriented measures, concentrating on what is to be provided as opposed to how.
  • Agreement between the customer and supplier for providing a range and target level of services.


This Schedule should contain information relating to the price of the services, which may include either one or more fixed prices, or a mechanism that will be used to determine the price. It may also include details such as whether VAT is included, and whether additional expenses are payable (and any related protocols).

A Statement of work is a document that defines the different aspects of a commercial project. A statement of work is an ancillary document to a governing agreement (eg a services agreement) and incorporates the terms and conditions of the governing agreement by reference. While the governing agreement sets out the terms relating to the entire commercial relationship, the statement of work deals with the specifics of a single project.

A Data processing agreement (DPA) details a supplier’s processing (eg storing and recording) of personal data (eg names and addresses) in the provision of services to a customer. A DPA acts as an addendum to a services agreement. For more information on DPAs, read Data processing agreements.

Under this services agreement, details relating to the processing of personal data can either be set out in a DPA or in the services agreement itself. Where a DPA is used, this should be attached to the completed services agreement under the Data Protection Schedule.

This agreement can be terminated by giving written notice to the other party. The agreement can also be terminated in some circumstances specified in this agreement (eg failure of the supplier to pay for services or if one party commits a major breach of the agreement).

Ask a lawyer if:

  • you are supplying goods
  • you are supplying services to a consumer
  • you are supplying specialist, unusual or highly regulated services, such as telecommunications services, financial services, legal services, technology-focused services, creative or design services or services that focus on intellectual property
  • the services provided deal with the transmission and/or storage of personal data
  • information or technology is being developed pursuant to this agreement as special provisions as to ownership and licence rights may need to be inserted

This services agreement is governed by the laws of England and Wales or the law of Scotland.

Other names for Services agreement

General contract for services, Services contract, Contract for services.