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
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