Why you need a Service Level Agreement
When a service provider is working with a client, they need to agree the job that will be performed and what standards are expected.
Rather than re-drafting a huge framework agreement, you can simply input your service levels into this smaller agreement and attach it onto the end!
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What is a Service Level Agreement?
The Service Level Agreement (SLA) outlines all the technical standards your service shall strive to adhere to.
Your SLA will be the first port of call to answer questions about how to report a fault (e.g. helpdesk phone numbers), priority levels and corresponding fix times, and associated remedies like service credits. Interested in how an SLA might be structured? View our table of contents and free key facts documents below.
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Frequently Asked Questions
Q: What needs to be included in a Service Level Agreement?
A: For it to be a Service-level Agreement, we probably need to have some service-levels (professional standards) to agree about! In our template, service-levels are laid out in a chart, which identifies potential faults and estimates response times based on the severity of that fault. We also need to know the procedure for submitting a fault and services that are out-of-scope.
By stipulating in the agreement that, should a claim arise out of a breach by the subcontractor, they shall have to reimburse the main contractor. We call this payment an indemnity, and it is one of the key points of the Back to Back Agreement.
Q: What are service credits?
A: Service credits can be offered from the supplier to the client for missed targets, usually related to service levels.
For instance, if a supplier offers support services for faults, but unfortunately can’t correct a particular fault one month, they may offer to reduce the fees by pre-arranged percentage- this is called a service credit. Service credits are an easier way for a client to receive financial compensation, than trying to seek claims for damages.
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