A Standard Service Agreement is a contract that establishes parties’ legal rights and obligations to the contract. When you regularly enter into many business relationships, you don’t want to start from scratch each time. Service agreements between two parties may be unique to each situation, but a standardized form is meant to include the legal provisions your company wants as part of every transaction.
Standard Service Agreements are a critical part of a successful business. They save time and money by letting you streamline the contract management process. With advanced technology like clickwrap at your disposal, you can easily use, modify, and track Standard Service Agreements throughout its contract lifecycle. Templateable workflows and automation allow multiple departments in your business to self-service Standard Service Agreements and reduce costly delays.
A Standard Service Agreement is a legal contract between a client and a service provider. The agreement outlines important details about the business relationship and the duties owed to one another. It may include information like pricing, ownership, shipment details, and much more. These agreements protect both the service provider and the customer by creating clear and enforceable guidelines both parties can follow.
A Standard Service Agreement is a templated version that your business will use for most clients. Instead of creating a new Service Agreement for each client individually, you can utilize the standard form. The standard Service Agreement is fully vetted by your legal department and protects your company when signed as is. Modern contract management software gives you the tools needed to modify these standardized agreements when necessary.
A Standard Service Agreement is commonly utilized by service providers, including:
For example, a cable company may offer a standard Service Agreement that outlines what it will provide as part of its services. This could include details on the channels available in a particular package, installation details, internet and modem requirements, details about repairs, billing, and much more. A standard Service Agreement is utilized for most cable company customers, as they are not negotiating different terms with the company. Using a standardized agreement saves the company a great deal of money in drafting and retaining contractual agreements.
The purpose of a standard Service Agreement is to create a one-size-fits-all document to handle most customer relationships. This template provides the framework for the legal agreements between the parties in a uniform way. A well-drafted standard service contract is designed to apply in most situations.
It is also meant to provide a starting point for negotiations—should any occur. A larger company may want to negotiate the terms of the standard agreement. Having a template ready to go reduces the time it takes to reach the acceptance stage of a customer agreement.
If you offer services as part of your business offerings, you will want to develop a standard Service Agreement. It describes the services being provided clearly and accurately. It also details the mutual benefits and obligations of the contract to avoid disputes down the road. Accurate descriptions of service offerings give the customer a clear idea of what they may expect from this relationship.
A standard Service Agreement also saves you a great deal of time and money. When you don’t have to form new agreements from scratch, you can focus more time on getting new customers rather than cumbersome contract negotiations. Template agreements can be modified when necessary, but in many situations, that standard Service Agreement is sufficient to get to the acceptance stage.
Standard Service Agreements should cover the entirety of the agreement and standard legal clauses. It should outline all parties’ mutual obligations and ensure they agree. Here’s an overview of what a standard Service Agreement typically includes:
This list comprises some of the most common sections of a standard Service Agreement, but it is not exhaustive. A well-drafted template should meet Legal review before being used as a standard document.
Standard Service Agreements are a starting point and may need to be adjusted for certain business deals. Although they are pre-approved by Legal, material alterations will continue to need their review. This is especially problematic if standard Service Agreements are negotiated using “old-school” methods like email redlining and phone calls back and forth.
A lack of automation when using standard Service Agreements may make them clumsy and prone to mistakes. They may also face enforceability problems when not properly tracked and audited. If your company cannot efficiently find the agreement during a dispute, the contract may be unenforceable.
Your company should utilize modern contract management software to create a standard Service Agreement. This technology allows you to draft standard Service Agreements from standard templates that you can modify to fit your needs. Legal can review it and finalize the standard version of your contract.
You can then build a template Service Agreement with sections that automatically fill in for new customers. These agreements are then stored and analyzed for important metrics, like renewal or contract end dates.
Your company can use automated tools to reduce the time-consuming task of managing standard Service Agreements. Highly adaptable tools in the Ironclad software allow deep integration with existing systems. The software will also track and analyze contract metrics for any document created or modified within the system.
In the traditional model of managing contracts, you were required to store documents in cloud storage or even physical filing cabinets. Instead, the Dynamic Repository lets you automatically store documents or analyze information like:
If a standard Service Agreement is not automated, its use as a template is very limited. In fact, it can be a pain to manage because contracts are stored in separate systems that cannot communicate. This increases the chances a record could be lost or a significant amount of time is taken to find it.
Automation increases transparency and makes it easier to create Service Agreements across all departments.
Ironclad’s Workflow Designer tool lets you implement automation throughout your company. It will streamline your process of creating a standard Service Agreement that can be modified by different departments and countersigning parties. Automation can reduce contracting time by 80% or more.
Templatable workflows simplify the effort of getting your contract from start to finish. It ensures each Service Agreement complies with legal requirements without requiring a manual review. With your template at the ready, you are not forced to create it from scratch. This institutional memory of your business agreements in one place gives you up-to-date information and saves money.
Most companies keep their standard Service Agreements in separate areas that cannot communicate digitally. They are isolated processes that create redundant work for staff that is time-consuming and revenue-wasting. This process is streamlined and made efficient through automation and centralized record-keeping with the right software.
Ironclad digital contracting provides multiple tools you can use to automate your standard Service Agreements. It’s an all-in-one solution that offers services like:
Standard Service Agreements are dynamic documents you can effectively manage with the right software. Automation and templating can save valuable time and increase your revenue. You can reduce turnaround time and focus on winning new customers.
Try a free demo of Ironclad today to start automating your contract lifecycle.
Ironclad is not a law firm, and this post does not constitute or contain legal advice. To evaluate the accuracy, sufficiency, or reliability of the ideas and guidance reflected here, or the applicability of these materials to your business, you should consult with a licensed attorney. Use of and access to any of the resources contained within Ironclad’s site do not create an attorney-client relationship between the user and Ironclad.
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