Can a PSA be signed electronically?

Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and retention requirements are met.

Do PSAs require notarization?

Generally no; notarization is rarely required for service agreements. Notarization is typically used for deeds, powers of attorney, or certain state‑specific filings, so verify state rules if in doubt.

What happens if a signer lacks authority?

If a signer lacked actual authority, the counterparty may seek ratification, rescission, or damages. Confirm delegation of authority before execution to avoid enforceability issues.

How should change orders be handled?

Use a written change order process in the PSA that requires signatory approval, scope description, cost impact, and revised schedule to avoid ambiguity and billing disputes.

How long must executed PSAs be retained?

Retention depends on applicable laws and the contract: IRS records generally require 3 years (IRC §6501(a)), HIPAA records 6 years (45 CFR §164.530(j)); retain per the longest applicable rule.

What proves an electronic signature is valid?

A complete audit trail showing signer identity, timestamp, IP address, and evidence of intent and consent supports enforceability; stronger authentication reduces repudiation risk.

Electronic Signature
Templates
Other
Professional Services Agreement

Professional Services Agreement

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

What the Professional Services Agreement Is and when it applies

A Professional Services Agreement (PSA) is a contract that defines the relationship between a service provider and a client for time‑and‑materials, fixed‑fee, or milestone‑based engagements. It typically covers scope of work, deliverables, payment terms, intellectual property, confidentiality, warranties, indemnities, termination, and dispute resolution. PSAs allocate responsibilities, align expectations, and reduce project risk by making performance requirements and acceptance criteria explicit. Organizations use PSAs for consulting, software development, marketing, design, engineering, and other professional services where deliverables and payments must be clearly documented.

Why a clear PSA matters for both parties

A well-drafted PSA reduces scope disputes, speeds approvals, and clarifies payment and liability terms so projects run more predictably. It creates a written benchmark for performance, helps manage change orders, and preserves enforceability when disagreements arise.

Who typically prepares and signs a PSA

Organizations of all sizes use PSAs whenever outside expertise is retained—internal legal or procurement teams often draft the template before business units add project details.

Independent consultants and small firms who sell services directly to businesses and need clear payment and IP terms.
Agencies and professional service firms that manage client engagements, milestones, and acceptance criteria.
Corporate procurement, legal, or project managers who approve vendor relationships and control contract terms.

Final signatures are usually executed by authorized signatories on each side; the signing process should verify signer authority and record the execution date.

Who has authority to sign the PSA

Company Officer

A named officer or authorized contract manager can sign on behalf of a corporate client when the company delegation of authority permits it. Confirm board or delegated limits before signature to avoid ratification issues.

Service Principal

For the service provider, a founder, CEO, or other authorized representative signs if their entity paperwork authorizes contract execution. Verification of entity name and title avoids signature disputes.

Core sections to include in a Professional Services Agreement

A concise PSA organizes essential provisions so each party understands obligations, timelines, fees, and remedies. Include clear, measurable descriptions for every component.

Scope of Work

Define tasks, deliverables, acceptance criteria, and exclusions. Use measurable milestones and reference exhibits or SOW attachments for technical detail.

Deliverables

List deliverable names, formats, delivery dates, and acceptance tests. Tie payment milestones to accepted deliverables to reduce disputes.

Fees & Expenses

Specify rates, fixed fees, expense reimbursement rules, invoice timing, and any retainers. Address late payment interest and invoicing requirements.

Payment Terms

Set net terms, milestone triggers, currency, taxes, and invoicing contact details. Clarify payment methods and consequences for nonpayment.

Confidentiality

Protect proprietary information with defined confidentiality obligations, permitted disclosures, and duration of protection after termination.

Termination

Include termination for convenience and for cause, notice periods, cure rights, and obligations on termination such as final invoices and return of materials.

Step-by-step: executing a PSA from draft to fully signed

Follow these sequential steps to draft, review, and finalize the agreement with clear records of changes and approvals.

01

Draft: Create template and SOW draft for review.
02

Review: Legal and stakeholders review and negotiate terms.
03

Approve: Authorized signatories approve final redline.
04

Execute: Sign, date, and distribute signed copies.

How to configure an online PSA workflow

Standardize fields and routing rules to ensure each signature, date, and approval is collected in the correct order and retained securely.

Field	Configuration
Signer Order	Specify sequential or parallel signing
Required Fields	Mark name, date, and signature as required
Notifications	Enable email reminders and receipts
Authentication	Select email, SMS code, or KBA

Routing and submission options for completed PSAs

Decide where signed copies should be delivered and what systems must store the executed agreement to support invoicing and audit trails.

Email Delivery: Send signed PDFs to all parties.
Cloud Storage: Archive to shared repositories automatically.
ERP Integration: Push executed documents to billing systems.
Contract Repository: Store in central contract management system.

Technical considerations for digital signing and storage

Verify integrations, file formats, and authentication methods before moving to an eSignature workflow so downstream systems accept the signed document.

File Formats: PDF | DOCX accepted
Integrations: Salesforce, NetSuite, Box, Google Workspace
Authentication: Email, SMS, KBA options

Ensure the chosen platform supports audit trails, export of signed PDFs, and any regulatory controls your industry requires for long‑term storage.

Comparing eSignature vendor pricing and basic capabilities

Vendor pricing and feature availability vary; signNow is listed first for direct comparison on common plan and compliance dimensions without suggesting a specific choice.

	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	Varies	Varies	Varies	Varies
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	No cap	No cap	No cap

Key security and compliance elements for storing signed PSAs

Transport Encryption: TLS 1.2/1.3

At-Rest Encryption: AES-256 encryption

Audit Trail: Detailed signing event logs

Certifications: SOC 2 Type II, ISO 27001

HIPAA Support: BAA available where required

ESIGN / UETA: Compliance with ESIGN and UETA

Common legal and financial risks of an incorrect PSA

Tax Reporting Fines: 1099 penalties under IRC §6721

I-9 Violations: Paperwork fines per 8 CFR §274a.2

Breach Damages: Contract damages and indemnity exposure

unenforceable Terms: Overbroad clauses may be voided

Confidentiality Breach: Statutory penalties or injunctive relief

Intentional Misconduct: Enhanced penalties and no cap

Frequent mistakes to avoid when preparing a PSA

Leaving scope descriptions vague which leads to disputes over deliverables and additional fees.
Failing to specify acceptance criteria and testing procedures for deliverables before payment triggers.
Using inconsistent party names or titles, causing ambiguity about who is bound by the agreement.
Omitting change order processes, which results in unmanaged scope creep and billing disagreements.

Real-world examples of PSAs in practice

These concise examples illustrate how organizations adapt PSAs to specific workflows and systems while preserving auditability.

Martin Properties

A small real estate firm standardized PSAs for property management projects to reduce turnaround time.

The firm digitized signature and routing.
As a result they processed and executed agreements online with audit trails and consistent payment schedules, improving administrative compliance and reducing delays in project startups.

Xerox (NetSuite Ops)

An enterprise integrated executed PSAs into ERP to automate billing and recordkeeping.

Integration pushed signed agreements into NetSuite.
This ensured the right signatures on the right documents and streamlined invoicing while preserving secure storage and searchable contract records.

Key milestones from negotiation to contract closeout

Track these stages to manage obligations, invoicing, and post‑termination obligations efficiently across the agreement lifecycle.

01

Negotiation

Terms drafted and redlined; stakeholders resolve open items.

02

Execution

Authorized signers sign and date the agreement.

03

Performance

Deliverables completed, tested, and accepted per SOW.

04

Closeout

Final invoices paid, IP assignments completed, records archived.

Frequently asked questions about Professional Services Agreements

Answers to common execution, enforceability, and post‑signature questions to reduce confusion during contracting and performance.

Need help? Contact support

Can a PSA be signed electronically?
Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and retention requirements are met.
Do PSAs require notarization?
Generally no; notarization is rarely required for service agreements. Notarization is typically used for deeds, powers of attorney, or certain state‑specific filings, so verify state rules if in doubt.
What happens if a signer lacks authority?
If a signer lacked actual authority, the counterparty may seek ratification, rescission, or damages. Confirm delegation of authority before execution to avoid enforceability issues.
How should change orders be handled?
Use a written change order process in the PSA that requires signatory approval, scope description, cost impact, and revised schedule to avoid ambiguity and billing disputes.
How long must executed PSAs be retained?
Retention depends on applicable laws and the contract: IRS records generally require 3 years (IRC §6501(a)), HIPAA records 6 years (45 CFR §164.530(j)); retain per the longest applicable rule.
What proves an electronic signature is valid?
A complete audit trail showing signer identity, timestamp, IP address, and evidence of intent and consent supports enforceability; stronger authentication reduces repudiation risk.

Explore Templates

North Dakota Power of Attorney Form North Dakota Contract for Deed Buy Sell Agreement North Dakota Lease Agreement with Option to Purchase Power of Attorney for Financial Decisions North Dakota LLC Operating Agreement

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now