What is this service level agreement template?
The basics: This service level agreement, commonly referred to as an SLA, is a formal agreement between a service provider/supplier and its customers that defines the level of service and performance standards that the supplier is expected to meet when performing the services. SLAs are common in lots of different industries, from software and IT to outsourcing, to ensure that services meet agreed-upon standards and expectations.
Supplemental agreement: A service level agreement only includes terms that relate to the standard that services must be performed to and what happens if those standards are not met. An SLA will be supplemental to a "main agreement" that sets out other key terms relating to the service provisions, such as the duration of the relationship, termination rights, liability and payment terms (e.g. services agreement, master services agreement, SaaS agreement). To find out the type of service agreement that is right for your business, read this guide.
When do I need to use this service level agreement template?
This service level agreement template can be used to provide performance metrics for any type of service provision. However, service level agreements are particularly common for the following types of services:
- IT and software services: service levels are common in software contracts, in particular they are used in order to measure software availability and response times to incidents;
- Complex services: for complex services, service levels can be a key tool in breaking down different elements of the service and ensuring performance metrics are attributed to all relevant and measurable elements; and
- Business critical services: if a service is business critical, service levels (and service credits) can be an important way to incentivise suppliers to provide the service to a high standard that ensures business continuity.
How can this service level agreement template help my business?
A service level agreement template can be a key tool in managing expectations, ensuring accountability, and providing a basis for resolving disputes between the service provider and the customer. They are critical for both parties as they help establish a framework for a successful and mutually beneficial working relationship, including by:
- Managing expectations: SLAs outline specific performance standards and metrics that the supplier is expected to meet when providing the services. This clarity ensures that both the supplier of services and the customer have a common understanding of what is expected in terms of service quality, response times, availability, and other key performance indicators; and
- Providing customer remedies: including a service credit regime in a service level agreement provides clear remedies to a customer where specific service levels are not met by the supplier. Agreeing these service credits in advance in an SLA provides a clear recourse for the customer.
Find out more about service level agreements by reading these FAQs.
What does this service level agreement template include?
Key provisions: Docue's dynamic service level agreement template has the option to include the following sections, amongst others:
- Service levels - this section sets out the service levels that the supplier is expected to meet when providing the services to the customer. It also categorises different service levels depending on their importance, from critical to low severity.
- Availability - this section includes the option to include a service level for service availability of the service. It also has the option to include exceptions for planned and unplanned maintenance (if required). An availability service level is common where the service includes the provision of software.
- Service credits - this section sets out the service credits that will be payable by the supplier to the customer in the event that the service levels are not achieved. It also includes the option to include a cap on the maximum service credits that are payable in a specified period. A service credit is usually a deduction from the price payable by a customer in response to a supplier's failure to meet a service level. Find out more about service credits here.
- Monitoring and reporting - this section includes an obligation on the supplier to keep records and provide reports upon request by the customer. It also contains an optional audit right in favour of the customer.
- General - this section includes a number of other legal terms that are common in English law contracts, including governing law and jurisdiction, notices, variation and severability. It also includes a precedence term which makes it clear which agreement (this SLA or the main agreement) takes precedence in the event of a conflict between their terms.
Why Docue?
Hand-crafted by lawyers: Docue’s service level agreement template is lawyer-made, lawyer-maintained, and has lawyer-crafted guidelines to steer you through every stage of drafting an agreement which is right for your business.
Easy to use: Docue allows your business to create, customise, sign, store, and manage your agreements all in one place. Simply click through the intelligent tick box options and text box answers and you’ll have a comprehensive, tailored, and ready-to-use service level agreement in no time.
Full contract process: Once you have created a contract that is tailored to your business needs, you can send the contract to each of the parties for e-signing. After the contract is signed, you can store the agreement in Docue’s storage vault, Docue Drive, to ensure you always have quick and easy access to your contracts in one place. You can ensure you never miss a contract renewal again by enabling Docue’s handy reminders to notify you of the next deadline.
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