What is a Service Agreement?
A Service Agreement is a contract used between a service provider and a client (or customer) that outlines the exchange of services for compensation.
A Service Agreement describes the terms of service, and should include a description of the work, the price for the service, assurances, and the contractor’s and client’s contact information. A service contract can be used for one specific job or an ongoing position that doesn't have an end date when the contract is signed.
Service Agreements are usually necessary when a job’s terms become more complex or need a detailed explanation.
A Service Agreement is also known as a/an:
General Service Contract
Independent Contractor Agreement
Consulting Services Agreement
When should I use a written Service Agreement?
Service providers should use Service Agreements any time they perform a service for a client. The agreement protects their interests and ensures they receive compensation. It’s a good idea to document the pay rate for services, invoicing frequency, and insurance clauses.
Clients should use a Service Agreement whenever they hire a service provider to perform a paid task. The agreement establishes the exact details of the arrangement, including compensation, duties, and confidentiality, if required.
What kind of service providers should use a Service Agreement?
A service provider is anyone who provides a service to another party. While it’s not mandatory for all service providers to use a Service Agreement, some common examples of service providers that use service contracts include:
Caterers
Cleaners
Construction companies and contractors
Consultants
Child care providers (e.g., babysitters, nannies, and daycares)
Dog walkers
Freelancers
Graphic designers
Hairstylists and makeup artists
Landscapers
Legal service providers
Musicians
Photographers
Public relations specialists
Web developers
Writers and editors