Service Agreement
Put the work, the price and the ground rules in writing before the job starts.
Includes 30 days of edits
- 5 to 20 minutes
- Print-ready PDF
What is a Service Agreement?
A service agreement is a contract between a customer (the client) and a person or business that performs work for it (the service provider). It describes what will be done, when and where it will be done, how much it costs and how the relationship can end.
Service agreements are used for almost every kind of work that is not the sale of goods: landscaping, bookkeeping, design, repairs, event support, marketing help and many other services. Putting the terms in writing reduces misunderstandings about scope, deadlines and payment, which are the most common sources of disputes between clients and providers.
Beyond the basics, a good service agreement also deals with the questions that come up when something goes wrong: who owns the work product, whether the provider carries insurance, how much either side can be liable for, how disputes are handled and which state's law applies.
When to use it
- You are hiring a business or individual to perform a defined service for your home or company.
- You provide services and want clients to agree to your scope, rates and payment terms before you begin.
- An ongoing service, such as weekly maintenance or monthly bookkeeping, has been running on a handshake and you want written terms.
- You need clear rules on who owns reports, designs or other materials created during the work.
- You want to set out how either side can end the arrangement and what is owed when it ends.
What is included
- Party details and short background recitals
- Description of the services, location and schedule
- Term, renewal and termination rights with a cure period
- Fixed fee, hourly or recurring pricing with invoicing and due dates
- Late payment interest and expense reimbursement options
- Ownership of work product or a license to use it
- Confidentiality, insurance and workmanship warranty
- Limitation of liability and mutual indemnification
- Optional non-solicitation of personnel
- Dispute resolution, governing law and signature blocks
How to make your Service Agreement
Answer the questions
Tell us about the parties and the terms you want. Most documents take about 5 to 20 minutes.
Review the preview
Check the draft as you go and change any answer. The document updates instantly.
Download, sign and keep a copy
Download a print-ready PDF, sign it with the other parties, and give everyone a copy.
Frequently asked questions
What is the difference between a service agreement and an independent contractor agreement?
They overlap a lot. A service agreement is usually used when the provider is an established business offering services to many customers. An independent contractor agreement focuses more on the working relationship with an individual, such as tax treatment and control over how the work is done.
Does a service agreement have to be in writing?
Many service arrangements are legally binding even when agreed orally, but some contracts must be in writing to be enforceable, for example agreements that cannot be completed within a year in many states. A written agreement is also far easier to prove if there is ever a disagreement.
Should I charge a fixed fee or an hourly rate?
A fixed fee works well when the scope is clear and unlikely to change. Hourly pricing suits work where the effort is hard to predict. Recurring monthly fees fit ongoing services. This agreement supports all three, and a fixed fee can be paid up front, on completion or with a deposit.
Who owns the work created under a service agreement?
It depends on what the contract says. Without a written transfer, the creator often keeps copyright in creative work. This agreement lets you choose whether ownership passes to the client once paid or stays with the provider with a license for the client to use it.
Can either party cancel a service agreement early?
Only if the contract allows it or the other side has seriously breached it. This agreement lets you set a notice period for ending the agreement without a reason and also allows termination for an uncured breach, with payment due for work already performed.
What does a limitation of liability clause do?
It caps the amount one party can recover from the other if something goes wrong, often at the fees paid under the contract, and excludes indirect losses such as lost profits. Some states do not enforce limits for certain conduct, such as gross negligence or intentional wrongdoing.
Do service agreements need to be notarized?
No. A service agreement is valid once both parties sign it. Electronic signatures are generally accepted for this kind of contract under federal and state e-signature laws.
What if the scope of the work changes?
Changes should be agreed in writing. This agreement includes a change order process so any added work, new deadlines or price changes are documented and signed by both parties before the provider performs them.
