Master services agreements and statements of work go hand-in-hand with one another. After creating a master services agreement, which will govern the general agreement between the service provider and customer, easily create one or more statements of work to define your specific service benchmarks and project needs.
Our questionnaire allows you to create both forms at the same time, saving time and avoiding costly mistakes.
By outlining clear terms and conditions for ongoing services that are provided, this agreement will help create reasonable expectations as well as avoid any unnecessary confusion. The following guide will discuss key terms and options that are included in the agreement.
The first step to complete this agreement is to decide whether you need to create a master services agreement, a statement of work, or both. Although each of these is a valid and binding agreement on its own, the function of each document differs.
Please note: It is usually recommended that the parties sign a master services agreement before completing a statement of work. Typically, a master services agreement would be signed first in order to establish the general terms of the relationship, then subsequently the parties will complete a statement of work in order to outline the specific requirements of the services that are being provided. Then, whenever the customer asks for additional services, additional statements of work can be completed. This saves the parties from having to negotiate their general agreement again each time services are requested.
A master services agreement serves as the general agreement that governs the relationship between a service provider and customer and also defines each party's general obligations and responsibilities. The master services agreement included in this document is compliant with most industry standard practices and covers many important considerations, such as confidentiality expectations, intellectual property rights, late payment penalties, and warranties, among others. Additionally, it is possible to adapt our document so as to include the sale and delivery of goods as well as services.
The main purpose of a statement of work is to describe specific work requirements in relation to goods and/or services. In a statement of work, some of the most important terms to be included are the terms that relate to the description of the service or good that will be provided. Keep in mind that a statement of work should be created in accordance with the master services agreement since these two agreements depend on one another.
One of the most important parts of any agreement is the term, which is marked by a starting date and an ending date. Our master services agreement allows for the parties to choose specific dates for the start and end of the agreement. However, these dates could also be measured by certain events; for instance, the signing of the agreement could designate the start date and the fulfillment of services could designate the end date.
It is advised that all of the parties agree on which payment methods will be accepted during the term of the agreement. It is also helpful to identify the desired payment locations in order to avoid any costly mistakes resulting from unclaimed or lost payments. This document also allows the option for parties to choose electronic methods for sending and receiving payment.
As is implied in the title, one of the major functions of a master services agreement is to define the general terms and conditions that will allow for the providing and receiving of certain services. Thus, it is essential that the scope of the work is defined accurately and that it includes any particular milestones that should be accomplished by a specific date. It is also important to define the cost structure determining when and how charges will be made.
If the service provider will also be selling or delivering goods, along with services, it is essential that the parties have clearly communicated their expectations to one another. Specifically, it is important that all parties agree to the method with which the goods will be charged, whether it is at a predetermined fixed rate or based on time and materials. It is also very important that each type of good be accurately described; this will help to avoid any possible confusion as to exactly what the customer expects to receive.
If the services or goods that are covered by this agreement need any specific treatment or if you need to add other requirements, this form allows for special clauses to be added and explained. This often applies when there are any particular industry-specific concepts or terms that need to be included in order to satisfy certain requirements or expectations.
As you create your master services agreement, statement of work, or both, you will need to include certain necessary information. This includes the business addresses and current emails for both the Customer and the Service Provider. You will also need to provide information related to the goods and/or services that are covered by the agreement.
Use the information you gathered in order to complete your master services agreement. We make this simple by guiding you through each step and helping you customize your document to meet your particular needs. As you respond to certain questions, the document will adapt to accommodate your requirements.
Please always review your document and read it thoroughly to be sure that it includes everything you need and that it contains no errors. If needed, once you have finished creating it, you will be able to edit your document as much as you like with Microsoft Word. However, should you decide that changes are not necessary, you can simply download the PDF version and have each party sign the agreement. You can find these downloads by navigating to the Documents section of your account dashboard.
As the parties' needs change or as new laws are passed, you will need to make updates to your master services agreement. You should keep in mind that it is essential that your statements of work also reflect any changes that are made in your master services agreement. LegalNature makes this simple by saving your answers in your account so that you can review them at any time.