Provider companies can also realize the benefits of a managed services contract with customers. They may have guaranteed revenue to ensure profitability, as most agreements include monthly payments for coverage. Protection against possible actions is minimized, as the responsibilities of both parties are documented. In addition, the agreement can be used as a tool to measure customer satisfaction and performance. The MSP is committed to providing its services in accordance with an agreed level of work in which the nature of services, specifications and assumptions, exclusions and dependencies should be clearly defined. MSP is required to carefully define them so that there is no misunderstanding with its clients about possible exclusions, and to avoid liability if the MSP is based on certain assumptions and dependencies. For example, service rules may depend on the customer not changing their network architecture because they may not work or cooperate in certain services, such as applications. B, in accordance with interoperability specifications. Several points are essential to the creation of a service management agreement. In addition to the details of the terms and a termination clause, the contract should also explain the restrictions on the supplier`s liability under certain conditions. Customers should be aware of the associated fees and timelines for the duration of the contract. You should also think of your MSA as a potential distribution tool.
You`ll notice that the coverage of our MSA model contains a checklist of services and products on offer, which will allow you to enhance the value you provide to a customer before asking them to log on to the dotted line. Before the client even inquires about the agreement, he has a clear understanding of what he or she is getting from the agreement. You certainly don`t want a number of different agreements to wander around, so you`re never sure which customers are under what provisions. An annual audit of your documentation is usually sufficient. Focus primarily on finding and amending clauses that cause problems for you or that don`t benefit your business relationships. The following paragraphs are clauses that you may want to add to the next revision. If you need advice when developing or concluding a management service contract, please contact me for a confidential and non-binding discussion. The provision of services under this type of contract is usually the first step in reaching an agreement with a potential customer. In most cases, legal counsel should check the document to ensure that supplier rights and client rights are protected.
If the customer is unable to make payments for purchased services or goods and the default lasts fifteen (15) days, interest is collected on an amount owed 12% per year until it is paid. In the case of the investigation procedure, in order to collect all the amounts owed from the client, the client must bear the collection costs plus reasonable legal fees. In most parties, service providers are in the best position to monitor the outcome of an agreement with customers. They attribute the work that employees and contractors do to clients under the terms of the contract. Nevertheless, customers also have a responsibility to respect the agreement. The key to reducing risk for a successful customer-customer relationship is to anticipate and overcome problems during the negotiation phase. The agreement should embody your Service Level Agreement (SLA), the prioritization process, response times, termination clause, limitation of liability and definition of support levels and your Service Desk escalation process. In addition, it should reflect your fees or fees for requested services that fall outside of the flat rate assistance. Here are the 12 most important things you should clearly define in your management services agreements: This is especially true when you develop your business from a break/fix model to manageable services.