Establishing secure connection…Loading editor…Preparing document…

Business Performance Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUSINESS PERFORMANCE AGREEMENT

This Business Performance Agreement ("Agreement") is made and entered into as of Effective Date: by and between Client Name: and Service Provider Name: .

RECITALS

WHEREAS, Client engages Service Provider to perform certain business performance services and deliverables described herein, and Service Provider represents that it has the expertise, personnel, and resources to perform such services in a professional manner; and

WHEREAS, the parties desire to set forth the terms and conditions under which Service Provider will provide such services and Client will compensate Service Provider; and

WHEREAS, performance standards, deliverables, and payment terms are to be memorialized in this Agreement for clarity and enforceability.

SCOPE OF WORK

PAYMENT TERMS

Total Compensation: $ payable in accordance with the schedule below. All payments are exclusive of applicable taxes unless otherwise stated.

Deposit (if any): $ due upon execution. Invoices shall be due and payable within days of receipt.

Late Payment: Unpaid amounts shall accrue interest at a rate of % per month (or the maximum lawful rate if lower), calculated daily and compounded monthly. Client is responsible for any collection costs, including reasonable attorneys' fees.

TERM AND TERMINATION

Term Commencement: This Agreement begins on Start Date: and will continue until End Date: unless earlier terminated in accordance with this section.

Termination for Convenience: Either party may terminate this Agreement without cause by providing written notice at least days prior to the effective termination date.

Termination for Cause: Either party may terminate for material breach if the breaching party fails to cure such breach within days after receipt of written notice specifying the breach. Termination shall not relieve Client of its obligation to pay for services performed through the effective date of termination.

CONFIDENTIALITY

Definition: "Confidential Information" means any non-public information disclosed by one party ("Disclosing Party") to the other ("Receiving Party") that is designated as confidential or that, by its nature, should reasonably be understood to be confidential.

Obligations: The Receiving Party shall (a) use Confidential Information solely for the performance of this Agreement; (b) restrict disclosure to those employees, contractors, or advisors who have a need to know and who are bound by confidentiality obligations at least as protective as those herein; and (c) implement reasonable safeguards to protect Confidential Information from unauthorized disclosure.

Exclusions: Confidential Information does not include information that (i) is or becomes publicly available through no fault of the Receiving Party, (ii) was known to the Receiving Party prior to disclosure, (iii) is rightfully received from a third party without restriction, or (iv) is independently developed without use of the Disclosing Party's Confidential Information.

Duration: The confidentiality obligations set forth herein shall survive termination of this Agreement for a period of years, except that trade secrets shall remain protected for as long as they qualify as trade secrets under applicable law.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflicts of law principles. The parties consent to the exclusive jurisdiction of the state and federal courts located within that state for any action arising out of or relating to this Agreement.

ENTIRE AGREEMENT

This Agreement, together with any schedules or attachments executed contemporaneously, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior and contemporaneous oral or written agreements, understandings, or representations. No amendment or modification shall be binding unless in writing and signed by authorized representatives of both parties.

MISCELLANEOUS PROVISIONS

Independent Contractor: Service Provider is an independent contractor and not an employee, joint venturer, or agent of Client. Service Provider shall be solely responsible for all taxes and withholdings applicable to payments made under this Agreement.

Assignment: Neither party may assign its rights or delegate its duties under this Agreement without the prior written consent of the other party, except that Client may assign to an affiliate or in connection with a merger or sale of substantially all of its assets.

Remedies: The parties acknowledge that a breach of confidentiality or other material obligations may cause irreparable harm for which monetary damages are an inadequate remedy; accordingly, a party shall be entitled to injunctive relief in addition to any other remedies at law or in equity.

Company:

Printed Name:

By:

Date:

Service Provider:

Printed Name:

By:

Date:

Enter text✕

What a Business Performance Agreement Is

A Business Performance Agreement (BPA) is a formal contract that defines measurable performance obligations, key performance indicators, timelines, and remedies between two commercial parties. It sets expectations for deliverables, payment triggers, reporting cadence, and dispute resolution. A BPA can cover services, vendor SLAs, sales quotas, or project milestones and often includes acceptance criteria, audit rights, and termination provisions. The document is intended to make performance measurable and enforceable, reduce misunderstandings, and provide a basis for remedies if agreed standards are not met.

Why a Clear BPA Matters for Your Business

A well-drafted BPA reduces ambiguity about responsibilities, ties payments to objective outcomes, and establishes a shared measurement framework for performance reviews and dispute resolution.

Why a Clear BPA Matters for Your Business

Who Typically Uses a Business Performance Agreement

The BPA is used by internal teams and external partners that need measurable, enforceable expectations.

  • Procurement and sourcing teams managing vendor delivery and invoices.
  • Operations and project managers tracking milestone-based payments.
  • Sales and account teams aligning commissionable activity to targets.

Parties should ensure signatory authority and review rights are clearly assigned before execution.

Typical Signatories and Stakeholders

Chief Operating Officer

A COO or equivalent executive often signs on behalf of the company when the BPA affects operational performance or multiple departments. Their signature confirms organizational acceptance of obligations and remedies across teams.

Vendor Authorized Signer

The vendor's authorized representative, typically a Director or VP with delegated contracting authority, must sign. Parties should verify authority via board resolution or corporate certificate if contract value is material.

Essential Provisions to Include in a BPA

A professional BPA organizes obligations, measurement, and remedies so each party can verify performance and compute payments or penalties.

Performance Metrics

Define precise KPIs, units of measure, measurement intervals, and acceptable thresholds for success or failure.

Scope of Work

Describe services, deliverables, acceptance criteria, and excluded work to avoid scope creep disputes.

Payment Triggers

Tie payment amounts and timing to milestone completion, KPI attainment, or acceptance testing outcomes.

Reporting Requirements

Specify reporting format, cadence, data sources, and audit access for verifying reported metrics.

Remedies and Credits

Detail service credits, liquidated damages, cure periods, or termination rights for persistent underperformance.

Governance and Disputes

Set escalation paths, review windows, dispute resolution (mediation/arbitration), and governing law.

Key Information Required on Every BPA

Party Names: Full legal entity names
Effective Date: MM/DD/YYYY
Scope Summary: Short descriptive phrase
KPI Definitions: Measurable units
Payment Terms: Amounts and triggers
Governing Law: State or jurisdiction

Step-by-Step: Filling and Finalizing a BPA

Follow these steps in order to complete the agreement accurately and obtain enforceable signatures.

  • 01
    Draft Terms: Define scope, KPIs, payments, and remedies
  • 02
    Internal Review: Legal and finance review for risks and tax impacts
  • 03
    Approval & Authority: Obtain corporate signatory approval
  • 04
    Execute Agreement: Collect signatures and retain the executed copy

Configuring an Online Execution Workflow

Set these workflow fields when preparing the BPA for electronic signing to ensure correct routing and evidence capture.

Field Configuration
Routing Order Sequential signer order; numeric steps
Authentication Email plus SMS code recommended
Signer Fields Signature, name, title, date required
Audit Options Enable audit trail and timestamping

Digital Signing and Integration Basics

Electronic execution requires a platform that preserves an audit trail, supports the document formats you use, and meets any industry compliance obligations.

  • File Formats: PDF, DOCX supported
  • Integrations: CRM and storage connectors
  • Security Standards: TLS and AES encryption

Confirm integrations (CRM, storage) and any regulatory requirements such as HIPAA or 21 CFR Part 11 before finalizing the signing workflow.

Where to Send or File an Executed BPA

After execution, route copies to the teams and systems that must act on the agreement or retain records.

  • Legal Department: For contract management and dispute handling
  • Finance / AP: For payment scheduling and invoice matching
  • Project Owner: For operational tracking and reporting
  • Document Repository: Store final PDF with audit trail

Key Dates and Deadlines to Track

Track milestone dates, review windows, and notice periods so neither party misses cure opportunities or payment triggers.

Effective Date:

Date obligations begin as MM/DD/YYYY

Performance Measurement:

Monthly or quarterly reporting deadlines

Payment Due:

Payment window after acceptance (e.g., 30 days)

Cure Period:

Length of time to remedy a breach (e.g., 15–30 days)

Renewal Notice:

Advance notice required to renew or terminate

Milestone Timeline for a Typical BPA

A sequential view of critical lifecycle stages from negotiation through post-performance review.

01

Negotiation and Drafting

Define scope, KPIs, payment structure, and reporting templates.

02

Internal Approvals

Legal, finance, and operational sign-off before external execution.

03

Execution and Onboarding

Collect signatures and start project onboarding tasks and data feeds.

04

Performance Review

Measure KPIs at agreed intervals and apply remedies or credits.

Common Pitfalls to Avoid

  • Using ambiguous KPIs such as 'best effort' or 'reasonable performance' that invite disputes and varied interpretations.
  • Failing to specify data sources and calculation methods for metrics, which can cause disagreements at reconciliation.
  • Neglecting to tie payments explicitly to verified acceptance events, leading to invoicing disputes and delayed collections.
  • Omitting signatory authority checks, resulting in later claims that the agreement was not properly authorized.

Primary Risks and Consequences

Contractual Damages: Monetary remedies for breach
Payment Withholding: Buyer may withhold payments for nonperformance
Reputational Harm: Loss of business or referrals
Regulatory Exposure: Industry compliance violations
Tax Reporting Issues: Incorrect reporting or withholding
Enforcement Costs: Legal fees to litigate disputes

eSignature Pricing Comparison for Executing a BPA

Platform pricing and features vary; below is a concise vendor comparison with signNow listed first for easy reference. Verify plan details before purchasing.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Business Premium) Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Yes Yes No No

Real-World Use Cases for a BPA

Examples show how BPAs are applied across buyer–supplier relationships and project-based work.

Vendor SLA Example

A managed services firm sets uptime at 99.9% monthly

  • Payment withheld pro rata for downtime
  • The supplier accepted credits rather than termination after three months of missed targets, preserving the relationship while the parties corrected monitoring feeds.

Project Milestone Example

A software provider ties milestones to delivery sprints

  • Each sprint requires client acceptance within five business days
  • The contract required documented acceptance criteria and a dispute window to reduce invoice disputes and speed payments.

Practical Tips to Reduce Risk and Speed Execution

Adopt these practices to make BPAs clearer, easier to manage, and less likely to require dispute resolution.

Use Clear Metrics
Express KPIs in measurable units and provide example calculations to avoid interpretive disagreements.
Document Data Sources
Specify the authoritative system or dataset used to compute metrics and the method of aggregation.
Include Cure Periods
Provide short cure windows so the parties can remediate issues before remedies or termination apply.
Preserve Evidence
Maintain audit logs, signed reports, and communication records to support performance determinations.

Frequently Asked Questions About Business Performance Agreements

Answers to common legal, execution, and recordkeeping questions about BPAs to help you avoid delays and preserve enforceability.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users