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Engineering Services Agreement

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ENGINEERING SERVICES AGREEMENT

This Engineering Services Agreement ("Agreement") is made and entered into as of Effective Date: by and between Service Provider Name: , a organized under the laws of with principal place of business at (hereinafter "Service Provider"), and Client Name: with principal place of business at (hereinafter "Client"). Service Provider and Client are each a "Party" and collectively the "Parties."

RECITALS

WHEREAS, Client desires to retain Service Provider to perform certain engineering, design, and consulting services in connection with the project described as (the "Project"); and

WHEREAS, Service Provider has the professional skill, experience, and personnel necessary to perform the services described in this Agreement and is willing to provide such services on the terms and conditions set forth herein; and

WHEREAS, the Parties desire to set forth their respective rights and obligations with respect to the Project in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties agree as follows:

1. SCOPE OF SERVICES

1.1 Services. Service Provider shall provide engineering services, including but not limited to planning, design, specifications, calculations, drawings, cost estimating, permitting assistance, and construction support (collectively, "Services") as specifically described in the Scope of Services attached hereto as Exhibit A and incorporated herein. A general summary of Services is:

1.2 Deliverables. Service Provider shall deliver to Client the reports, drawings, calculations, and other deliverables set forth in the Scope of Services or as otherwise agreed in writing. The schedule for delivery, including key milestones, shall be:

2. TERM; TERMINATION

2.1 Term. This Agreement shall commence on the Effective Date and continue in full force for a period of months, unless earlier terminated in accordance with this Agreement.

2.2 Termination for Convenience. Either Party may terminate this Agreement for convenience upon thirty (30) days' prior written notice to the other Party. In the event of termination for convenience, Client shall pay Service Provider for Services performed and reasonable costs incurred up to the effective date of termination.

2.3 Termination for Cause. Either Party may terminate this Agreement for material breach by the other Party if such breach is not cured within fifteen (15) days after receipt of written notice specifying the breach; provided that nonpayment by Client shall be cured within ten (10) days to avoid termination for cause.

3. COMPENSATION AND PAYMENT

3.1 Fees. Client shall pay Service Provider fees as follows: (a) a lump sum of for the tasks identified in the Scope of Services, and/or (b) time-and-materials at the hourly rates set forth in the attached Rate Schedule.

3.2 Expenses. Client shall reimburse Service Provider for reasonable and pre-approved out-of-pocket expenses incurred in performing the Services, including reproduction, travel, courier, and permit fees, upon submission of documentation.

3.3 Invoicing and Payment. Service Provider shall invoice Client monthly or upon achievement of agreed milestones. Client shall pay undisputed invoices within days of receipt. Late payments shall bear interest at the lesser of 1.5% per month or the maximum rate permitted by law.

4. CHANGES; CHANGE ORDERS

4.1 Change Orders. Either Party may request changes to the Services. No change shall be effective except by written Change Order signed by authorized representatives of both Parties specifying the change in scope, the effect on schedule, and any adjustment to fees or expenses.

5. STANDARD OF PERFORMANCE; WARRANTY

5.1 Professional Standard. Service Provider shall perform the Services with the professional skill and care ordinarily provided by competent engineers performing similar services in the same locality and under similar circumstances.

5.2 Limited Warranty. Service Provider warrants that deliverables will materially conform to the requirements of this Agreement for a period of days following acceptance. Client's sole and exclusive remedy for breach of this warranty shall be re-performance of nonconforming Services at Service Provider's expense. THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED.

6. INTELLECTUAL PROPERTY; WORK PRODUCT

6.1 Ownership. All intellectual property and work product created by Service Provider specifically for Client under this Agreement ("Work Product") shall be the property of subject to payment in full. To the extent Service Provider retains any pre-existing proprietary materials, Service Provider grants Client a non-exclusive, perpetual, royalty-free license to use such materials solely as incorporated in the Work Product delivered under this Agreement.

6.2 Use. Client's use of deliverables for purposes other than those expressly contemplated by this Agreement shall be at Client's sole risk and without liability to Service Provider, and Client shall indemnify Service Provider for claims arising from such unauthorized use.

7. CONFIDENTIALITY

7.1 Confidential Information. Each Party acknowledges that it may receive or have access to confidential or proprietary information of the other Party ("Confidential Information"). Confidential Information shall not include information that is: (a) already known to the receiving Party without an obligation of confidentiality; (b) publicly available other than by a breach of this Agreement; or (c) independently developed by the receiving Party without use of the disclosing Party's Confidential Information.

7.2 Non-Disclosure. The receiving Party shall use Confidential Information solely for the purposes of performing this Agreement and shall not disclose Confidential Information to any third party except to its employees, consultants, or agents who have a need to know and who are bound by confidentiality obligations at least as protective as those herein.

8. INDEMNIFICATION; LIMITATION OF LIABILITY

8.1 Indemnification by Service Provider. Service Provider shall indemnify and hold Client harmless from and against third-party claims to the extent arising out of Service Provider's negligent acts, errors or omissions in the performance of the Services, provided that Client gives prompt written notice and cooperates in the defense.

8.2 Indemnification by Client. Client shall indemnify and hold Service Provider harmless from and against third-party claims arising from Client's use of the deliverables for purposes not contemplated by this Agreement or Client's negligent acts.

8.3 Limitation of Liability. EXCEPT FOR LIABILITY ARISING FROM GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, IN NO EVENT SHALL EITHER PARTY'S AGGREGATE LIABILITY UNDER THIS AGREEMENT EXCEED THE TOTAL AMOUNTS PAID OR PAYABLE BY CLIENT TO SERVICE PROVIDER UNDER THIS AGREEMENT DURING THE SIX (6) MONTHS PRECEDING THE CLAIM. NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL, OR PUNITIVE DAMAGES.

9. INSURANCE

Service Provider shall maintain, at its expense, professional liability insurance with limits of not less than and commercial general liability insurance with limits of not less than per occurrence. Upon request, Service Provider shall provide certificates of insurance to Client.

10. SUBCONTRACTING; ASSIGNMENT

10.1 Subcontracting. Service Provider may engage subcontractors to perform portions of the Services, provided that Service Provider remains responsible for performance and compliance with this Agreement.

10.2 Assignment. Neither Party may assign this Agreement or any rights hereunder without the prior written consent of the other Party, except that Service Provider may assign receivables to a financing institution without such consent.

11. INDEPENDENT CONTRACTOR; COMPLIANCE

The relationship of Service Provider to Client is that of an independent contractor. Service Provider shall be solely responsible for payment of wages, benefits, taxes and withholdings for its employees and for compliance with all applicable laws, codes, regulations, and professional licensing requirements.

12. NOTICES

All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below (or to such other address as a Party may designate by written notice).

13. AMENDMENTS; WAIVER; COUNTERPARTS

13.1 Amendments. This Agreement may be amended only by a written instrument executed by duly authorized representatives of both Parties.

13.2 Waiver. The failure of either Party to enforce any provision of this Agreement shall not be deemed a waiver of such provision or of the right to enforce it thereafter.

13.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures transmitted by facsimile or electronic image shall be treated as original signatures.

14. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

14.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to its conflict of laws principles.

14.2 Entire Agreement. This Agreement, including any exhibits and schedules attached hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations, and understandings, whether oral or written.

14.3 Severability. If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be modified to the minimum extent necessary to make it enforceable, and the remaining provisions shall remain in full force and effect.

15. MISCELLANEOUS

15.1 Survival. Provisions of this Agreement that by their nature are intended to survive termination or expiration, including but not limited to payment, warranty limitations, confidentiality, indemnification and intellectual property provisions, shall so survive.

15.2 Remedies. Except as otherwise provided herein, the remedies provided in this Agreement are cumulative and not exclusive of any remedies available at law or in equity.

SIGNATURES

Service Provider:

By:

Date:

Client:

By:

Date:

Enter text✕

What an Engineering Services Agreement Covers

An Engineering Services Agreement is a written contract that defines the technical scope, deliverables, schedule, payment terms, and responsibilities between an engineering firm and a client. It allocates risk through warranties, indemnities, insurance and limits on liability, and typically addresses intellectual property, change orders, and dispute resolution. For U.S. projects the agreement should also state governing law, specify performance milestones, and include provisions for recordkeeping and retention to support compliance audits and potential regulatory reviews.

Why drafting a clear Engineering Services Agreement matters

A precise agreement reduces scope disputes, clarifies payment and delay remedies, and preserves enforceable rights for both parties. It provides a contract baseline for project management, helps meet regulatory or funding conditions, and supports audit trails needed for claims or compliance reviews.

Why drafting a clear Engineering Services Agreement matters

Who typically prepares and signs this agreement

Each signer should have authority to bind their organization; corporate signatories and procurement officers commonly execute these contracts.

  • Project owners and developers who retain engineering design and oversight services for infrastructure or buildings.
  • Engineering firms and consulting practices that provide design, calculations, and technical deliverables.
  • General contractors and specialty contractors who rely on engineer-provided specifications and site support.

Core sections to include in a professional agreement

A robust Engineering Services Agreement explicitly defines responsibilities, measurable deliverables, and remedies so parties can manage schedule, cost, and quality.

Scope of Work

Describe services in measurable terms: tasks, technical standards, drawings, reports, assumptions, and exclusions to minimize ambiguity and change-order disputes.

Deliverables

List deliverable types, formats, review cycles, and acceptance criteria, including hard-copy and digital submission standards and milestone signoffs.

Schedule

Specify milestone dates, critical-path obligations, delay notice procedures, and time-based remedies such as liquidated damages or revised completion dates.

Compensation

State fee structure (fixed, time-and-materials, or milestone payments), invoicing frequency, payment terms, and reimbursable expense rules.

Intellectual Property

Allocate ownership or license rights for drawings, reports, and software; include rights for reuse and restrictions on third-party use.

Liability & Indemnity

Define limits of liability, indemnity scope, insurance requirements, warranties, and procedures for dispute resolution or claims handling.

Step-by-step: executing an agreement from draft to signed

Follow a consistent workflow to reduce revision cycles and secure valid signatures.

  • 01
    Draft: Populate scope, fees, and dates.
  • 02
    Review: Circulate to legal and technical reviewers.
  • 03
    Negotiate: Track changes and finalize exhibits.
  • 04
    Sign and Archive: Obtain signatures and store executed copies securely.

Configuring an online signing workflow

Set up digital workflows that mirror your internal approval stages and evidence retention needs.

Field Configuration
Signer Order Sequential or parallel signing per project roles
Authentication Email link, SMS code, or advanced MFA
Conditional Fields Show fields only when specific options are selected
Notifications Auto-reminders and completion alerts

Where to send and how to deliver executed copies

Plan routing to ensure the owner, engineer, and primary contractor each receive the final executed agreement promptly.

  • Upload: Sender uploads final PDF or DOCX to the signing platform
  • Assign: Place signature and date fields, then assign signer roles
  • Sign: Signers authenticate and apply electronic signatures
  • Distribute: Automatically send executed copies to all parties

Technical and compliance requirements for digital execution

Choose settings that preserve the audit trail, permit legal reproducibility, and meet any industry compliance such as HIPAA or 21 CFR Part 11 as required by the project.

  • Integrations: Salesforce, NetSuite, Google Workspace compatible
  • File Formats: PDF, DOCX, and output to Excel supported
  • Authentication: Email link, SMS code, or advanced options

Key dates to include in the agreement

Document explicit calendar dates and windowed timelines to reduce disputes about performance and payment triggers.

Effective Date:

Date when obligations commence

Design Milestones:

Deliverables due on specified milestone dates

Payment Due Dates:

Invoice schedule and net payment terms

Warranty Period:

Duration for remedial obligations

Termination Notice:

Required notice period for contract termination

Typical project milestone sequence

Track milestone progression from engagement through final closeout to coordinate approvals and payments.

01

Engagement

Agreement executed and kickoff meeting held

02

Design Deliveries

Submit preliminary and final design packages

03

Construction Administration

Provide site visits, RFIs, and submittal reviews

04

Closeout

Deliver record documents and final invoice

Common preparation mistakes to avoid

  • Vague scope descriptions that lead to unquantified change orders and disputes over contract boundaries.
  • Failing to require appropriate professional liability insurance and limits that match project risk and owner expectations.
  • Omitting a clear approval process for change orders, causing unauthorized work and payment disagreements.
  • Not confirming signer authority or corporate approvals, which can render an agreement unenforceable in disputes.

Principal legal and financial risks

Breach Liability: Exposure to damages for missed obligations
Delay Damages: Liquidated damages or lost profits
Indemnity Exposure: Broad indemnities increase risk
Insurance Gaps: Claims not covered by policy
Tax Reporting: Incorrect contractor classification
IP Disputes: Unclear ownership of deliverables

Selected eSignature vendor comparison for executing agreements

Basic plan features and compliance capabilities vary; signNow appears first for easy reference alongside common alternatives.

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 card Varies by vendor Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Security and compliance considerations

In-Transit Encryption: TLS 1.2/1.3
Data At Rest: AES-256 encryption
Certifications: SOC 2 Type II
International Standards: ISO 27001
U.S. eSign Law: ESIGN and UETA compliant
HIPAA Support: BAA available where required

Real-world examples of use and outcomes

These examples show how organizations applied electronic workflows to engineering agreements to improve turnaround and compliance.

Optica Ventures — COO

Optica implemented online signing for client design contracts to reduce delays by standardizing templates.

  • The team used role-based approval to keep technical and commercial reviews separate.
  • As a result, turnaround improved and customers reported clearer expectations while the company preserved a complete audit trail for each executed agreement.

Xerox — NetSuite Operations Director

Xerox integrated electronic signing with ERP to automate signature routing for vendor engineering contracts.

  • The integration tied signed contracts to purchase orders automatically.
  • This reduced manual entry, improved record linkage across systems, and ensured finance teams could validate payments against executed scopes.

Practical tips for accurate and efficient completion

Apply consistent procedures and document controls throughout drafting, negotiation, and execution to reduce rework and disputes.

Use clear, measurable scope language
Define tasks, deliverable formats, acceptance criteria, and excluded items to limit interpretation disputes and simplify change-order assessment.
Require evidence of authority
Confirm signers' corporate title and approval limits before execution to ensure enforceability and reduce post-signature challenges.
Preserve audit trails
Keep digital evidence of signer authentication, timestamps, and IP addresses to support enforceability and regulatory reviews.
Align insurance and indemnity
Match required insurance limits to indemnity clauses and project risk to avoid uncovered exposures during claims.

Frequently asked questions about execution and validity

Answers address common concerns about enforceability, e-signatures, revisions, and signature authority in U.S. contexts.


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