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IT Services Contract

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IT SERVICES CONTRACT

This IT Services Contract (the "Agreement") is made as of Effective Date: by and between Client Name: (Client) and Service Provider Name: (Provider).

RECITALS

WHEREAS, Client requires information technology services, including but not limited to system design, implementation, maintenance, security, and support, as described in this Agreement; and

WHEREAS, Provider represents that it has the professional expertise, personnel, and resources to perform the services described in this Agreement in a competent and workmanlike manner; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the provision and receipt of those services.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, the parties agree as follows:

1. DEFINITIONS

1.1 "Services" means the IT services to be provided by Provider as described in the Statement of Work included in Section 2 below and any change orders executed under this Agreement.

1.2 "Deliverables" means any tangible or intangible work product, reports, documentation, software, configuration, or other materials delivered to Client pursuant to this Agreement.

2. STATEMENT OF WORK / SCOPE OF SERVICES

Provider shall perform the Services set forth below. Provider shall exercise commercially reasonable efforts and industry-standard practices to meet timelines and specifications set forth herein.

Provider will assign qualified personnel to perform the Services. Provider shall ensure that all personnel comply with Client's reasonable security and facility access policies while on Client premises.

3. TERM; TERMINATION

3.1 Term. The term of this Agreement commences on the Effective Date and continues for a period of months unless earlier terminated pursuant to this Section.

3.2 Termination for Cause. Either party may terminate this Agreement for material breach if the breaching party fails to cure such breach within days after receipt of written notice specifying the breach.

3.3 Termination for Convenience. Either party may terminate this Agreement without cause upon days prior written notice. In the event of termination, Client shall pay Provider for Services performed and non-cancellable commitments incurred through the effective date of termination.

4. FEES, EXPENSES AND PAYMENT

4.1 Fees. Client shall pay Provider the fees set forth below. Fees are exclusive of taxes. Unless otherwise specified, all payments are due within days of invoice.

4.2 Late Payments. Overdue amounts shall accrue interest at the lesser of 1.5% per month or the maximum rate permitted by law. Provider may suspend Services if invoices remain unpaid after days' notice.

5. CONFIDENTIALITY

5.1 Definition. "Confidential Information" means non-public information disclosed by one party to the other that is designated as confidential or that reasonably should be understood to be confidential given its nature.

5.2 Obligations. Each recipient shall (a) protect Confidential Information with at least the same degree of care it uses to protect its own confidential information, (b) use Confidential Information only to perform its obligations under this Agreement, and (c) not disclose Confidential Information to third parties except to its employees, contractors, or advisors on a need-to-know basis and bound by confidentiality obligations.

5.3 Exceptions. Confidential Information does not include information that is or becomes publicly known through no breach, is independently developed, or is rightfully received from a third party without restriction.

6. INTELLECTUAL PROPERTY; LICENSES

6.1 Work Product. Except as set forth in this Section, all right, title and interest in and to Deliverables specifically created for Client under this Agreement shall vest in Client upon full payment; Provider hereby assigns and will assign such rights to Client.

6.2 Provider Materials. Provider shall retain ownership of its pre-existing software, tools, templates, methodologies and know-how ("Provider Materials"). Provider grants Client a non-exclusive, non-transferable license to use Provider Materials only to the extent incorporated into Deliverables during the Term and solely for Client's internal business purposes.

7. WARRANTIES; DISCLAIMER

7.1 Provider Warranty. Provider warrants that Services will be performed in a professional and workmanlike manner consistent with industry standards for similar services for a period of days following delivery.

7.2 Disclaimer. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.

8. LIMITATION OF LIABILITY

8.1 CAP. EXCEPT FOR LIABILITY ARISING FROM A PARTY'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, BREACH OF CONFIDENTIALITY, OR INDEMNIFICATION OBLIGATIONS, EACH PARTY'S AGGREGATE LIABILITY UNDER THIS AGREEMENT SHALL NOT EXCEED THE AMOUNTS PAID OR PAYABLE TO PROVIDER IN THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO LIABILITY.

8.2 EXCLUSION. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS OR BUSINESS INTERRUPTION, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

9. INDEMNIFICATION

9.1 By Provider. Provider shall indemnify, defend and hold Client harmless from and against any third-party claims alleging that Deliverables infringe any United States patent, copyright or trade secret, provided Client promptly notifies Provider in writing and allows Provider sole control of the defense and settlement.

9.2 By Client. Client shall indemnify, defend and hold Provider harmless from claims arising out of Client's misuse of the Deliverables, Client data, or Client-provided specifications.

10. DATA PROTECTION & SECURITY

10.1 Compliance. Each party shall comply with applicable data protection laws in the performance of this Agreement. Provider shall implement and maintain administrative, technical and physical safeguards appropriate to the nature of Client Data to protect against unauthorized access, disclosure, alteration or destruction.

10.2 Breach Notification. Provider shall notify Client without undue delay upon becoming aware of a security incident affecting Client Data, and shall cooperate in good faith with Client's reasonable incident response and mitigation activities.

11. INSURANCE

Provider shall maintain commercial general liability insurance, professional liability/errors & omissions insurance, and workers' compensation insurance in amounts customary for Provider's industry. Upon request, Provider shall furnish certificates of insurance evidencing such coverage.

12. SUBCONTRACTING; PERSONNEL

Provider may engage subcontractors to perform Services provided that Provider remains responsible for the performance of such subcontractors and ensures they are bound by confidentiality and data protection obligations no less protective than those in this Agreement.

13. CHANGES; AMENDMENTS

Any changes to Services, schedule, or fees shall be made only by a written change order signed by authorized representatives of both parties. No oral modification shall be binding.

14. NOTICES

Notices under this Agreement shall be in writing and delivered to the addresses set forth below by certified mail, overnight courier, or email with confirmed receipt. Notices are effective upon receipt.

15. GOVERNING LAW; VENUE

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in that state for the resolution of disputes.

16. ENTIRE AGREEMENT; SEVERABILITY; WAIVER; COUNTERPARTS

16.1 Entire Agreement. This Agreement, together with any exhibits and signed change orders, constitutes the entire agreement between the parties and supersedes all prior discussions, proposals, and agreements relating to the subject matter hereof.

16.2 Severability. If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall remain in full force and effect.

16.3 Waiver. The failure of either party to enforce any right shall not constitute a waiver of that right or any other right.

16.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one agreement. Electronic or facsimile signatures shall be binding.

AUTHORITY

Each party represents and warrants that the signatory below is duly authorized to execute this Agreement on its behalf and to bind such party to all terms and conditions hereof.

Client Name:

By:

Date:

Service Provider Name:

By:

Date:

Enter text✕

What an IT Services Contract Defines

An IT Services Contract is a written agreement between a service provider and a client that sets the scope, deliverables, timelines, pricing, responsibilities, and performance expectations for technology work. Typical provisions include a statement of work, service levels and remedies, acceptance criteria, intellectual property allocation, confidentiality, data security obligations, payment schedule, and termination terms. The contract frames who performs what activities, how results are measured, change control procedures, and the governing law that will interpret disputes. It is commonly used for managed services, software development, system integration, and maintenance engagements.

Why a Clear IT Services Contract Matters

A well-drafted contract reduces scope disputes, clarifies payment and liability, protects intellectual property, and defines remedies for missed SLAs. It also documents security responsibilities and compliance obligations, enabling predictable project delivery and reducing legal and operational risk for both parties.

Why a Clear IT Services Contract Matters

Who Typically Prepares and Signs an IT Services Contract

The document is used across vendor, client, and internal legal teams to formalize technology work and ongoing support relationships.

  • Managed service providers and consulting firms contracting recurring support and maintenance services.
  • Software development and integration vendors delivering custom applications or system upgrades.
  • Corporate procurement, IT, and in-house legal teams buying third-party technology services.

Proper signatory authority and internal approvals should be confirmed before execution to ensure enforceability and post-signature acceptance workflows.

Essential Sections to Include in the IT Services Contract

A comprehensive IT Services Contract organizes obligations and remedies into distinct, enforceable sections so both parties know expectations and risk allocations.

Parties & Definitions

Identify contracting entities, affiliates, and key definitions that shape interpretation and limit ambiguity throughout the agreement.

Scope of Services

Describe deliverables, milestones, acceptance criteria, change control procedures, and what is expressly out of scope to avoid disputes.

Deliverables & Acceptance

Set objective acceptance tests, review periods, remedy for failures to meet criteria, and the process for corrective action.

Service Levels & Remedies

Detail measurable SLAs (availability, response times), credits or termination rights for breaches, and exclusion for scheduled maintenance.

Payment & Fees

State pricing model, invoicing cadence, late payment terms, expense reimbursement, and any milestone-based retainers or holdbacks.

Confidentiality & IP

Allocate ownership of work product, license grants, and confidentiality duties including return or destruction of sensitive data.

Step-by-Step: Preparing and Executing the Contract

Follow a linear workflow from preparation to execution to ensure accuracy and auditability.

  • 01
    Gather information: Collect parties' legal names, scope, pricing, and approval contacts.
  • 02
    Draft and review: Draft SOW, obtain internal and legal review, and resolve open terms.
  • 03
    Add signing fields: Place signature, date, and initial fields and set signer order if sequential.
  • 04
    Execute and distribute: Collect signatures, produce a certificate of completion, and send final copies to parties.

Typical Online Workflow Settings for Execution

Configure a repeatable e-sign workflow to reduce administrative steps and ensure consistent authentication and retention.

Workflow settings and recommended values Setting | Recommended value
Signature authentication and method selection Signature type | Email link + SMS code
Signer sequencing and parallel routing Signing order | Sequential with conditional parallel steps
Reminder cadence and escalation rules Automatic reminders | 3 reminders at 3, 7, and 14 days
Document storage and retention policy Retention policy | Store signed PDF and audit trail for term + 7 years

Where to Send the Completed Contract and Next Steps

After execution, route copies to stakeholders and systems that support fulfillment, accounting, and legal hold requirements.

  • Client distribution: Send final signed PDF to client contacts and contract owner.
  • Internal systems: Upload to contract repository, CRM, and procurement systems.
  • Billing handoff: Notify accounts receivable to create invoice per payment terms.
  • Retention & audit: Preserve the signed file and audit trail for compliance and disputes.

Technical Considerations for Digital Signing and Delivery

Confirm platform capabilities, file formats, and integrations before sending the contract to signers.

  • Supported formats: PDF, DOCX, HTML
  • Typical integrations: Salesforce, NetSuite, Google Workspace
  • Authentication options: Email link, SMS code, KBA

Common Timeframes and Deadlines to Track

Key dates should be captured in the contract and in downstream trackers to avoid missed obligations or cost exposure.

Effective date:

Controls when performance and payment obligations begin.

Term and renewal notice:

State term length and when renewal or termination notice is due, e.g., 30–60 days.

Notice to cure:

Allow defined cure period (often 30 days) before termination for breach.

Payment due dates:

Specify invoicing schedule and Net terms such as Net 30 or Net 45.

SLAs and response times:

Document response and resolution time targets tied to severity levels.

Common Contract Risks and Potential Consequences

Scope creep: Unpaid additional work
Missed SLAs: Service credits or termination rights
IP ambiguity: Ownership disputes and litigation risk
Late payment: Interest, collection costs
Data breach: Regulatory fines, remediation costs
Improper signature: Enforceability or repudiation risk

Frequent Preparation Mistakes to Avoid

  • Vague scope descriptions that leave critical deliverables undefined and create disputes during acceptance and billing.
  • Missing signatory authority where a party signs without corporate approval or delegated power, risking unenforceability.
  • Failure to include data security obligations and breach notification procedures when handling regulated or personal information.
  • Neglecting change-control terms that permit unilateral expectation changes without additional fee or schedule adjustment.

eSignature Vendor Pricing and Compliance Snapshot

Comparing baseline price, trial availability, bulk send, audit trail, HIPAA coverage, and envelope limits supports technology selection for contract execution.

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 plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Real-World Examples of IT Contract Execution

Practical deployments show how templates and e-sign workflows reduce turnaround time and maintain compliance across integrations.

Optica Ventures LLC

A small vendor standardized online signing to simplify customer handoffs and speed acceptance.

  • Reduced friction in customer signature flow.
  • Brian Fitzgibbons, COO, said: "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers." The change improved execution consistency and lowered administrative follow-up.

Xerox (NetSuite integration)

An enterprise integrated contract signing into back-office systems to automate order processing.

  • Faster internal approvals and fewer lost documents.
  • Kodi-Marie Evans, Director of NetSuite Operations, noted that integration provided flexibility to get signatures in required formats and reduced manual reconciliation across systems.

Security and Compliance Considerations

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certification: SOC 2 Type II and ISO 27001 available
HIPAA Support: HIPAA compliant with BAA required
21 CFR Compliance: Supports 21 CFR Part 11 use cases
Audit Trail: Comprehensive timestamped signing history
Accessibility: WCAG 2.0 Level AA conformance

Frequently Asked Questions About IT Services Contracts

Answers to common questions about e-signing, enforceability, notaries, amendments, storage, and dispute evidence for IT Services Contracts.


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