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Business Toolkit

Service Level Agreement

Read time

2 Minutes

Last updated

July 9, 2022

What’s a Service Level Agreement?

A Service Level Agreement, or SLA, is a contract between a service provider and a customer that outlines the terms of the services being provided. The agreement should spell out what services will be provided, how they will be delivered, and what standards the service provider will meet. An SLA also typically includes information on how the agreement can be modified, and what happens if the service provider doesn’t meet the standards laid out in the agreement.

SLAs are often used in business-to-business (B2B) arrangements, but can also be used in other types of relationships, such as between a company and its customers or between a government agency and the public. SLAs can be helpful in ensuring that both parties understand the expectations and obligations associated with the arrangement.

When drafting an SLA, it’s important to be clear and specific about the terms of the agreement. The document should spell out what services will be provided, how those services will be delivered, and what standards the service provider will meet. The agreement should also include information on how the agreement can be modified, and what happens if the service provider doesn’t meet the standards laid out in the agreement.

It’s also important to make sure that both parties understand and agree to the terms of the agreement before it is signed. Once an SLA is in place, both parties should make sure to review it regularly to ensure that it is still meeting their needs. If the agreement is no longer relevant or if the service provider isn’t meeting the standards laid out in the agreement, it may be time to renegotiate the terms of the agreement or to terminate the relationship altogether.

When it comes to service level agreements, it’s important to have a clear and concise document that outlines the terms of the agreement. By taking the time to draft an SLA, you can help ensure that both parties understand the expectations and obligations associated with the relationship.

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