A service-level agreement (SLA) outlines the expectations and responsibilities between two parties. It specifies the level of service to be provided and the consequences if those expectations aren’t met.
This Service-Level Agreement (this “Agreement” or this “Service Level Agreement”), effective as of (Effective date) (“Effective Date”) is made by and between [Client.Company] , a company organized and existing in [Client.State] with offices located at [Client.StreetAddress] [Client.State] [Client.PostalCode] (“Customer”) and [Sender.Company] , a company organized and existing in [Sender.State] with offices located at [Sender.StreetAddress] [Sender.City] [Sender.State] [Sender.PostalCode] (“Supplier”).
WHEREAS, the Parties have entered into an agreement effective as of (Effective date) (the “Contract”) for the provision by Supplier of the Services (as defined therein) (the “Services”); and
WHEREAS, the Contract states that a service-level agreement is a condition precedent to any extended term of the Contract; and
WHEREAS, the Customer is willing to continue with the Contract past the original end date solely upon Supplier’s acceptance of the terms and conditions of this Agreement, and Supplier confidently accepts the terms and conditions herein;
NOW, THEREFORE, in consideration of the foregoing, and of the terms and conditions and the Service Levels, the Parties hereby agree as is outlined in the following sections:
A service-level agreement template is often used as an addition to an existing SLA contract, providing more specific details about service expectations. It’s important to note the SLA doesn’t alter the original contract’s terms.
When signed, this Agreement will form a part of the Contract, and upon signing this Agreement, the Contract shall be automatically changed, in accordance with its terms, from a monthly contract to a yearly contract. All capitalized terms not defined herein shall have the meanings ascribed to them in the Contract.
In this section of the SLA template, you need to clearly outline the responsibilities of both parties. The client must provide necessary information and assistance, while the service provider must deliver the agreed-upon services. If any business changes occur, both parties must state it in writing and agree upon them.
[Client.Company]
[Client.Company] must provide all of the necessary information and assistance-related needs for service performance that allows the [Sender.Company] to meet the service level standards as outlined in this agreement.
[Client.Company] shall inform [Sender.Company] if there are any business changes that may require a review, modification, or amendment of the service-level agreements.
[Sender.Company]
[Sender.Company] acts as the primary provider of the services that are identified in this agreement, except if outsourcing is done to a third-party vendor. In that case, the third party assumes any support responsibilities that align with their services.
[Sender.Company] will communicate with [Client.Company] if there are scheduled or unscheduled service outages that happen because of maintenance, troubleshooting, disruptions, or as otherwise necessary.
The Supplier shall at all times during the term of this Agreement provide the Services to meet or exceed the Service Level Performance Measure for each Service Level Performance Criterion, as defined herein below.
The Supplier acknowledges that any failure to meet a Service Level may have a material adverse impact on the business and operations of the Customer, and that it shall entitle the Customer to the rights set out in this Agreement below, including the right to any Service Credits (as defined below).
The Supplier acknowledges and agrees that any Service Credit is a price adjustment reflecting the value of any lost service caused by failure to meet a Service Level. Both Parties agree that the Service Credits are a reasonable method of price adjustment to reflect poor performance.
Other than the Customer’s termination rights as set forth in the Contract, a Service Credit shall be the Customer’s exclusive financial remedy for a failure to meet a Service Level.
Implement monitoring tools and procedures to track performance and ensure compliance with the SLA contract. Regularly review performance data to identify improvement areas and address deviations from the agreed-upon service levels. Communication regarding SLA concerns should be documented in writing./p>
The Supplier shall implement all measurement and monitoring tools and procedures necessary to measure, monitor, and report on the Supplier’s performance of the provision of the Services against the applicable Service Levels at a level of detail sufficient to verify compliance with the Service Levels.
The Supplier shall immediately notify the Customer in writing if the level of performance of the Supplier of any element of the provision by it of the Services during the term of the Contract is likely to or fails to meet any Service Level Performance Measure.