Service Level Agreement Template
This Service Level Agreement (“Agreement”) is entered into as of [Effective Date] (“Effective Date”) by and between:
[Service Provider Name], a company organized and existing under the laws of [Jurisdiction], with a principal place of business at [Service Provider Address] (“Service Provider”);
and
[Customer Name], a company organized and existing under the laws of [Jurisdiction], with a principal place of business at [Customer Address] (“Customer”).
WHEREAS, the Service Provider is engaged in the business of providing certain services as further described herein; and
WHEREAS, the Customer desires to obtain such services from the Service Provider subject to the terms and conditions of this Agreement;
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:
Definitions and Interpretation
For the purposes of this Agreement, the terms set forth below shall have the following meanings:
“Service(s)” means the services provided by Service Provider to Customer as specifically described in this Agreement.
“Service Credits” refers to the financial or other remedies available to Customer due to Service Provider’s failure to meet the specified service performance standards.
“Incident” means any event that is not part of the standard operation of the Service, and that causes or may cause, an interruption to, or a reduction in, the quality of the Service.
“Scheduled Downtime” denotes the planned period during which the Service will be unavailable due to maintenance or upgrades, as notified in advance to the Customer.
“Business Hours” means [insert definition, e.g., Monday to Friday, 9:00 AM to 5:00 PM, excluding public holidays].
“Force Majeure Event” encompasses any circumstance beyond the reasonable control of the parties, including but not limited to acts of God, war, terrorism, government action, fire, flood, or labor disputes.
“Confidential Information” is any information disclosed by one party to the other in connection with this Agreement which is designated as confidential or would reasonably be considered confidential.
Where the context so admits, words denoting the singular shall include the plural and vice versa, and references to a party include its permitted successors and assigns.
Headings are for ease of reference only and shall not affect interpretation.
All references to days mean calendar days unless expressly stated otherwise.
Any reference to “including” or “includes” shall be construed without limitation.
Any capitalized term not otherwise defined herein shall have the meaning ascribed to it in the relevant section of this Agreement.
Scope of Services
The Service Provider shall provide the Customer with the services described herein, which shall include but not be limited to: [detailed description of the services to be provided].
The scope of services shall be limited to those expressly set out in this Agreement, unless otherwise agreed in writing by both parties.
The parties acknowledge and agree that any additional services requested by the Customer shall be subject to a separate written agreement and may incur additional fees.
Service Provider shall allocate qualified personnel and necessary resources for the performance of the services in accordance with the standards set forth herein.
The Service Provider will provide the services in accordance with the service levels, availability commitments, and performance standards specified in this Agreement.
Any modification, expansion, or reduction in the scope of services shall require the express prior written consent of both parties.
Service Provider shall not be responsible for any services, deliverables, or obligations not expressly described in this Agreement.
Any third-party services required to deliver the services shall be identified, and responsibility for their procurement and management shall be clarified within this Agreement or by separate arrangement.
Customer may, upon reasonable notice and subject to agreement on commercial terms, request changes to the scope of services.
Service Performance Standards
Service Provider shall perform all services with reasonable care, skill, and diligence in accordance with industry best practices and the performance standards set forth herein.
The Service Provider will ensure that all service deliverables conform to the specifications and quality levels described in this Agreement.
The Service Provider will adhere to agreed-upon response and resolution times for incidents, as detailed in the Incident Management section.
Service Provider shall ensure that all personnel engaged in service provision are suitably qualified and trained, and shall supervise their activities to ensure compliance with the agreed standards.
The Service Provider will conduct regular reviews of its service delivery procedures to identify and address potential deficiencies in performance.
The Service Provider shall implement appropriate monitoring mechanisms to continuously assess the quality of the services provided to the Customer.
Where performance falls below the standards specified herein, the Service Provider shall, at its own expense, implement corrective measures and report such actions to the Customer.
Service Provider shall maintain accurate records of service activities, which shall be made available for inspection by the Customer upon reasonable request.
The parties agree to meet at regular intervals, as determined by mutual agreement, to review service performance and address any issues arising therefrom.
Service Availability and Uptime Commitments
The Service Provider shall use commercially reasonable efforts to ensure the Service is available to the Customer at least [insert percentage, e.g., 99.9%] of the time during each [insert measurement period, e.g., calendar month], excluding Scheduled Downtime and Force Majeure Events.
Service availability shall be measured on a [monthly/quarterly] basis, and shall be calculated as follows: (Total Minutes in Measurement Period – Unscheduled Downtime Minutes) / (Total Minutes in Measurement Period – Scheduled Downtime Minutes) × 100%.
Service Provider shall notify Customer in writing of any anticipated inability to meet the applicable uptime commitment as soon as reasonably practicable.
In the event that service availability falls below the specified commitment, Service Provider shall provide Service Credits or other remedies as set forth in this Agreement.
The Service Provider will maintain redundant systems and backup procedures as appropriate to minimize the risk of unplanned service interruptions.
Planned maintenance causing unavailability shall be considered Scheduled Downtime, provided that Service Provider gives at least [insert notice period, e.g., 5 business days] prior written notice to Customer.
Emergency maintenance may be performed with shorter notice where required for security or system integrity; Service Provider shall provide notice as soon as practicable.
Service Provider shall ensure that its infrastructure, systems, and processes are designed to achieve the stated uptime commitment and promptly address any issues impacting service availability.
Customer shall have the right to request a detailed report explaining the causes and corrective actions for any material breach of the uptime commitments.
Incident Management and Response Procedures
Service Provider shall establish and maintain a comprehensive incident management process for identifying, logging, classifying, and resolving incidents affecting service delivery.
Incidents shall be classified according to severity levels, as mutually agreed upon, with corresponding target response and resolution times for each category.
Upon notification or discovery of an incident, Service Provider shall promptly acknowledge receipt to the Customer and commence initial assessment.
Service Provider shall keep the Customer informed of progress towards resolution through regular updates, the frequency and format of which shall be agreed between the parties.
The Service Provider shall use all reasonable efforts to resolve incidents within the target resolution times specified for the relevant severity level.
If an incident requires escalation, Service Provider shall follow escalation procedures and promptly notify Customer of the escalation and measures being taken.
Service Provider shall maintain records of all incidents, including the root cause, remedial actions taken, and time to resolution, and shall provide such records to Customer upon request.
Recurring or systematic incidents shall be subject to root cause analysis, and Service Provider shall implement steps to prevent future occurrences of similar incidents.
In the event of a major outage or severity one incident, Service Provider shall provide a detailed incident report to Customer within [insert time period, e.g., 48 hours] of resolution.
Maintenance and Scheduled Downtime
Service Provider shall be entitled to schedule maintenance activities that may result in temporary unavailability of the Service, provided advance written notice is given to Customer.
Scheduled Downtime shall be limited to [insert maximum duration and frequency, e.g., 4 hours per month], unless otherwise agreed by the parties in writing.
All Scheduled Downtime shall be communicated to Customer at least [insert notice period, e.g., 5 business days] in advance, specifying the date, time, expected duration, and nature of the maintenance.
Service Provider shall use commercially reasonable efforts to schedule maintenance during periods of lowest anticipated service usage to minimize inconvenience to Customer.
In the event that maintenance must be performed on an emergency basis, Service Provider shall notify Customer as soon as practicable, detailing the reasons for such action.
Service Provider shall take all reasonable steps to reduce the impact of both scheduled and emergency maintenance on the availability and performance of the Service.
The Service Provider shall make available to Customer a maintenance calendar or other means to view planned maintenance windows.
If maintenance exceeds the notified period, the additional downtime may be treated as unscheduled downtime for the purposes of calculating service credits.
Customer agrees to cooperate with Service Provider by providing reasonable access or information necessary to facilitate maintenance activities.