What Is a Service Agreement?

A Service Agreement, also called a service contract or consulting services agreement, is:

• A written agreement between a service provider and a customer,
  or client
• A description of the duties or services to be completed by the service provider in exchange for payment
• A document explaining the rights and obligations of both parties, including expense reimbursement, liability insurance, and confidentiality

What Is a Service Provider?

Service providers, also known as contractors or freelancers, may work as:

• Web developers or programmers
• Graphic designers or illustrators
• Writers, editors, or translators
• Marketing, branding, or PR consultants
• Special event support: caterers, servers, or DJs/musicians
• Hairstylists or makeup artists
• Caregivers or child care providers

Why Should I Have a Service Agreement?

Create a Service Agreement in order to:

• Outline the duties and obligations of both the service provider
  and client
• Formalize the agreement with the signature of both parties
• Have a written document you can refer to in the future

What Information Is Needed in a Service Agreement?

Your Service Agreement should contain the following information:

Service details:

• Customer and service provider information
• Description of the service being provided to the customer
• Contract end date: upon completion, on a set date, or indefinite

Payment details:

• Billing: hourly rate or flat fee
• Whether the service provider will be reimbursed for expenses

Additional information:

• Support or resources provided by the customer (e.g. office space, supplies)
• Who owns the intellectual property created under contract
• Insurance obligations for the service provider

What Additional Terms Can I Include in a Service Agreement?

You can choose to include the following terms in your contract:

• Confidentiality clause: prevents the contractor from disclosing any private or proprietary information obtained from the client
• Non-compete clause: prevents the contractor from using information learned in the course of the working relationship to compete in the client's market
• Non-solicitation clause: prevents the contractor from soliciting or hiring the client's employees