Master services agreements go hand-in-hand with statements of work. After creating a master services agreement to govern the general agreement between the customer and service provider, easily create one or more statements of work to define your specific project requirements and service benchmarks.
With this in mind, our questionnaire allows for both forms to be created at the same time, saving you time and avoiding costly errors.
By defining clear terms and conditions for providing ongoing services, this agreement will help foster reasonable expectations and prevent unnecessary confusion. The following guide discusses the key terms and options included in the agreement.
The first step in completing this agreement is to choose whether you need a master services agreement, a statement of work, or both. Although each one is a valid and binding agreement on its own, the function of each one varies.
Please note: It is typically recommended to sign a master services agreement prior to completing a statement of work. Normally, parties first sign a master services agreement in order to establish the general terms of the relationship, and then they will complete a statement of work to define the specific requirements of the services being provided. Additional statements of work can then be completed whenever the customer requests additional services. This saves the parties from needing to renegotiate their general agreement each time services are needed.
A master services agreement serves as the general agreement governing the relationship between a customer and a service provider defining each party's general obligations and responsibilities. The master services agreement included in this document complies with most industry standard practices and covers several important issues, such as intellectual property rights, late payment penalties, warranties, confidentiality expectations, among others. Also, our document can be adapted to include the sale and delivery of goods, as well as services.
The main function of a statement of work is to describe particular work requirements related to goods and/or services. Some of the most important terms included in a statement of work are those related to the description of the service or good expected. It is important to keep in mind that a statement of work should be created in accordance with the master services agreement since these documents rely on each other.
One of the most important parts of any agreement is its term, which is measured by a start date and an end date. Our master services agreement allows for the parties to indicate specific dates for the start and end of the agreement. These dates could also be set by certain events, such as the signing of the agreement as the start date and the fulfillment of services as the end date.
It is recommended that all parties agree on what payment methods will be accepted while the agreement is in effect. Also, identifying the desired payment locations helps prevent any costly mistakes that result from lost or unclaimed payments. This agreement also provides the option for parties to choose electronic means as a way to send and receive payments.
As its title implies, one of the main functions of a master services agreement is to set the general terms and conditions that will allow for certain services to be provided and received. To that end, it is vital that the scope of the work is accurately defined and includes any specific milestones that need to be accomplished by a certain date, as well as the cost structure that will determine when and how charges will be made.
If the service provider will also sell or deliver goods along with its services, it is important that all parties have clearly communicated their expectations to each other. In particular, it is important that all parties agree to how the goods will be charged, whether it be for time and materials or at a predetermined fixed rate. Also, it is of vital importance that each type of good be completely described so as to avoid possible confusions as to what the customer expects to receive.
If the services or goods covered by this agreement need any special handling or additional requirements, this form allows for special clauses to be added and explained. This is often the case when certain industry-specific concepts or terms need to be included in order to satisfy particular requirements or expectations.
As you complete your master services agreement and/or statement of work, you will need to provide certain relevant information. This includes both the Customer’s as well as the Service Provider’s business addresses and current emails. You will also need all information related to the goods and/or services covered by the agreement.
Use the information you collected to complete your master services agreement. We make this easy by guiding you each step of the way and helping you to customize your document to match your specific needs. As you answer certain questions, the document will adjust to accommodate your needs.
Please always read your document thoroughly to ensure it contains everything you need and is free of errors. In any case, once you finish creating your document, you will be able to alter it as much as you like in Microsoft Word. However, if you do not need to make any changes, you can simply download the PDF version and have the parties sign the agreement. These downloads are available by navigating to the Documents section of your account dashboard.
As the needs of the parties change or new laws pass, you will need to update your master services agreement. Keep in mind that it is very important that your statements of work also reflect any changes made in your master services agreement. LegalNature makes this easy by saving your answers in your account so you can review them at any time.