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Professional Services MSA

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PROFESSIONAL SERVICES MASTER SERVICES AGREEMENT

This Master Services Agreement (the "Agreement") is entered into as of Effective Date: by and between Service Provider Name: , located at and Client Name: , located at (each a "Party" and collectively the "Parties").

RECITALS

WHEREAS, Service Provider has expertise and experience in providing professional services in the area of ; and

WHEREAS, Client desires to engage Service Provider to perform certain services as described in Statements of Work executed under this Agreement; and

WHEREAS, the Parties desire to set forth the terms and conditions governing the provision of such services.

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

1. DEFINITIONS

1.1 "Agreement" means this Master Services Agreement and all Statements of Work and attachments executed hereunder. "Statement of Work" or "SOW" means a document describing the Services, deliverables, schedule, and fees, executed by authorized representatives of the Parties and expressly incorporated herein. Capitalized terms not otherwise defined in this Agreement shall have the meanings assigned in the applicable SOW.

2. SERVICES; STATEMENTS OF WORK

2.1 Services. Service Provider shall perform the Services set forth in each SOW in a professional and workmanlike manner consistent with industry standards. Each SOW shall identify scope, schedule, acceptance criteria, and fees.

2.2 Order of Precedence. In the event of a conflict between this Agreement and an SOW, the SOW shall control with respect to the specific Services described therein, unless the Parties expressly state otherwise in writing.

3. FEES AND PAYMENT

3.1 Fees. Client shall pay Service Provider the fees set forth in each SOW. Fees may be fixed price, time-and-materials, or other agreed pricing mechanism. Fee schedule for the initial SOW:

3.2 Invoicing. Service Provider will invoice Client in accordance with the payment schedule in the applicable SOW. Unless otherwise provided, Client shall pay all undisputed invoices within days of receipt. Late payments shall bear interest at the lesser of 1.5% per month or the maximum permitted by law.

3.3 Expenses. Client will reimburse pre-approved, reasonable, and necessary out-of-pocket expenses incurred by Service Provider in performing the Services, provided that such expenses are itemized on invoices.

4. CHANGE ORDERS

4.1 Any change to scope, schedule, or fees shall be made only by mutual written agreement in a Change Order signed by authorized representatives of the Parties. Service Provider shall notify Client if any requested change will affect fees or delivery dates.

5. TERM; TERMINATION

5.1 Term. This Agreement shall commence on the Effective Date and continue until terminated in accordance with this Section or until all SOWs have been completed and paid.

5.2 Termination for Convenience. Either Party may terminate this Agreement or any SOW for convenience upon thirty (30) days' prior written notice to the other Party. Client shall pay for Services performed and expenses incurred through the effective date of termination and for any non-cancellable obligations.

5.3 Termination for Cause. Either Party may terminate this Agreement upon written notice if the other Party materially breaches any provision and fails to cure within fifteen (15) days after receipt of written notice; if the breach is not curable within such period, termination may occur if the breaching Party fails to commence cure within such period and diligently pursue cure to completion.

6. CONFIDENTIALITY

6.1 Definition. "Confidential Information" means non-public information disclosed by a Party that is marked confidential or that a reasonable person would understand to be confidential given the nature of the information and circumstances of disclosure, including but not limited to technical data, business plans, pricing, and customer information.

6.2 Obligations. Each Party shall: (a) hold Confidential Information in strict confidence and not disclose it to third parties except as permitted herein; (b) use Confidential Information only to exercise rights and perform obligations under this Agreement; and (c) disclose Confidential Information only to those employees, contractors, and agents who have a need to know and who are bound by confidentiality obligations at least as protective as those herein.

6.3 Exceptions. Confidential Information does not include information that: (a) is or becomes generally available to the public other than by breach of this Agreement; (b) was known to the receiving Party prior to disclosure; (c) is rightfully received from a third party without restriction; or (d) is independently developed without reference to the disclosing Party's Confidential Information.

7. INTELLECTUAL PROPERTY

7.1 Background IP. Each Party retains all right, title, and interest in its Background Intellectual Property. Nothing in this Agreement transfers ownership of pre-existing intellectual property.

7.2 Deliverables; Assignment. Subject to Client's timely payment of all fees, Service Provider hereby assigns to Client all right, title and interest in and to the Deliverables specifically created for Client under an SOW and identified as subject to assignment, except for Service Provider's tools, templates, and other Background Intellectual Property, which remain the property of Service Provider. The Parties may specify different ownership terms in an SOW.

8. WARRANTIES; DISCLAIMER

8.1 Mutual Warranties. Each Party represents and warrants that it has the authority to enter into this Agreement and to perform its obligations.

8.2 Service Provider Warranty. Service Provider warrants that the Services will be performed in a professional and workmanlike manner consistent with industry standards. For any breach of this warranty, Service Provider's sole obligation will be to re-perform the non-conforming Services or, at Service Provider's option, refund amounts paid for such non-conforming Services.

8.3 Disclaimer. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, THE SERVICES AND DELIVERABLES ARE PROVIDED "AS IS" AND SERVICE PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW.

9. INDEMNIFICATION

9.1 By Service Provider. Service Provider shall indemnify, defend and hold harmless Client and its officers, directors and employees from and against any claims, liabilities, losses, and expenses (including reasonable attorneys' fees) arising from any third-party claim that the Deliverables, as delivered by Service Provider and used within the scope of the SOW, infringe or misappropriate a third party's intellectual property, provided that Client: (a) gives Service Provider prompt written notice of the claim; (b) allows Service Provider to control the defense and settlement of the claim; and (c) cooperates in the defense.

9.2 By Client. Client shall indemnify, defend and hold harmless Service Provider from and against claims arising out of Client's grossly negligent or willful misuse of the Deliverables or Client's breach of representations and warranties made herein.

10. LIMITATION OF LIABILITY

EXCEPT FOR LIABILITY ARISING FROM A PARTY'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR A BREACH OF SECTION 6 (CONFIDENTIALITY) OR 9 (INDEMNIFICATION), IN NO EVENT SHALL EITHER PARTY'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT EXCEED THE FEES PAID BY CLIENT TO SERVICE PROVIDER UNDER THE APPLICABLE SOW IN THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM. NEITHER PARTY SHALL BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES.

11. INSURANCE

Service Provider shall, at its own expense, maintain insurance coverage customary for its industry and adequate to cover its obligations under this Agreement, including commercial general liability and, where applicable, professional liability/errors & omissions insurance. Upon request, Service Provider will provide certificates of insurance evidencing such coverage.

12. COMPLIANCE WITH LAWS; BACKGROUND CHECKS

Each Party shall comply with all applicable laws, rules and regulations in performing its obligations. If an SOW requires access to Client systems or facilities, Service Provider shall ensure that personnel performing the Services comply with Client's reasonable security and background-check requirements specified in the applicable SOW.

13. INDEPENDENT CONTRACTOR

Service Provider is an independent contractor and not an employee, agent, or partner of Client. Service Provider retains sole responsibility for withholding taxes and providing employee benefits for its personnel.

14. NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses below by hand, certified mail (return receipt requested), or nationally recognized overnight courier, and shall be effective upon receipt.

15. ASSIGNMENT; SUBCONTRACTING

Neither Party may assign this Agreement or any of its rights or obligations without the prior written consent of the other Party, except that either Party may assign this Agreement without consent to a successor in interest in connection with a merger, acquisition, corporate reorganization, or sale of substantially all assets, provided that the assignee assumes the assignor's obligations hereunder. Service Provider may subcontract portions of the Services provided that Service Provider remains responsible for performance.

16. AMENDMENTS; WAIVER; COUNTERPARTS

Any amendment to this Agreement must be in writing and signed by authorized representatives of both Parties. No failure or delay by either Party in exercising any right shall operate as a waiver. This Agreement may be executed in counterparts, each of which shall be deemed an original, and facsimile or electronic signatures shall be binding.

17. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

This Agreement shall be governed by and construed in accordance with the laws of the state specified below without regard to its conflict of laws principles. The Parties agree that the state and federal courts located in the specified jurisdiction shall have exclusive venue for disputes unless the Parties agree otherwise in writing.

This Agreement, together with all SOWs, constitutes the entire agreement between the Parties with respect to the subject matter and supersedes all prior and contemporaneous agreements and understandings, written or oral. If any provision of this Agreement is held unenforceable, the remaining provisions will continue in full force and effect.

18. MISCELLANEOUS

18.1 Publicity. Neither Party shall issue press releases or public communications regarding the existence or terms of this Agreement without the prior written consent of the other Party, except as required by law.

18.2 Records; Audit. Each Party shall maintain complete and accurate records related to the performance of this Agreement. Client may audit Service Provider's invoices and performance records related to a specific SOW upon reasonable prior notice and during regular business hours.

SCOPE OF INITIAL STATEMENT OF WORK (SOW)

ADDITIONAL PROVISIONS

Service Provider Printed Name:

By:

Date:

Title:

Client Printed Name:

By:

Date:

Title:

Enter text✕

What a Professional Services MSA Does

A Professional Services Master Services Agreement (MSA) is a standing contract that defines the commercial and legal framework for ongoing services relationships. It sets core terms—scope, deliverables, invoicing, payment schedules, intellectual property assignment, warranties, liability limits, confidentiality, and dispute resolution—allowing individual statements of work (SOWs) to reference the MSA rather than renegotiating core terms each time. MSAs are used to reduce negotiation time, ensure consistent risk allocation across engagements, and document continuing obligations such as insurance, indemnity, and data-protection responsibilities. Where permitted, the MSA can be executed electronically under applicable e-signature law.

Why a Master Services Agreement Matters

Using a Professional Services MSA centralizes recurring contract terms, shortens procurement cycles, and clarifies each party’s rights and remedies. When signed electronically in line with the ESIGN Act (15 U.S.C. §7001) and state UETA rules, electronic execution generally creates legally enforceable agreements for commercial services.

Why a Master Services Agreement Matters

Who Typically Relies on a Professional Services MSA

The MSA is commonly used by both providers and buyers to manage repeat professional engagements across projects and SOWs.

  • Service providers and consultants managing multiple client engagements or delivery teams.
  • Corporate procurement and legal teams standardizing vendor terms and payment workflows.
  • Project managers and client stakeholders who need a repeatable contract platform for SOWs.

Properly completed MSAs reduce administrative friction and improve consistency for contract managers, project leads, and legal teams.

Representative Signatories and Their Roles

Service Provider — VP Legal

A provider’s authorized signatory (often general counsel or VP of legal) confirms authority to bind the company, accepts payment terms and liability caps, and ensures IP and confidentiality clauses reflect the business model.

Client — Procurement Director

The client’s procurement or legal representative confirms budget and billing approvals, negotiates SOW-level deliverables, and authorizes signature on behalf of the contracting entity per internal delegation rules.

Core Sections to Include in a Professional Services MSA

A well-drafted MSA organizes essential commercial and legal terms so SOWs can remain focused on project-specific details.

Scope

Defines high-level services and how SOWs, exhibits, or statements of work will describe detailed deliverables and acceptance criteria for each engagement.

Payment Terms

Specifies invoicing cadence, net terms, late fees, expense reimbursement rules, and any retainers or milestone-based payment schedules.

Intellectual Property

Allocates ownership of work product, preexisting IP, and license rights. Addresses developer contributions, deliverables, and transfer or license mechanics.

Confidentiality

Sets nondisclosure obligations, permitted disclosures, duration of confidentiality, and return or destruction procedures for sensitive information.

Liability & Indemnity

Limits damages, defines indemnity scope, and lists excluded damages. Includes insurance minimums and claim notification requirements.

Termination

Outlines termination for convenience and cause, cure periods, transition obligations, and surviving clauses such as confidentiality and IP.

Step-by-Step: Completing a Professional Services MSA

Follow a clear sequence to reduce errors and ensure the agreement reflects business intent before execution.

  • 01
    Gather Documents: Collect company formation, W-9, insurance certificates, and any prior contracts.
  • 02
    Define Scope: Attach or reference the applicable SOW describing deliverables, milestones, and acceptance criteria.
  • 03
    Review Terms: Confirm payment, IP, confidentiality, and liability terms with legal and finance stakeholders.
  • 04
    Execute: Obtain authorized signatures and retain executed copies for both parties and records.

Typical Routing and Approval Flow

MSAs follow a defined routing path to ensure legal, finance, and operational sign-off before final execution.

  • Drafting: Originating business or legal team prepares the MSA and any SOW attachments.
  • Internal Review: Finance and legal confirm billing terms, liability caps, and insurance requirements.
  • Counterparty Review: The receiving party negotiates SOW terms and any limited exceptions to standard clauses.
  • Execution: Authorized signatories sign the final document, and executed copies are distributed to stakeholders.

Online Workflow Settings for Executing an MSA

Configure digital workflow options to match your internal approval and signature requirements before sending the MSA for signature.

Field Configuration
Signer Authentication Email link or SMS code; consider multi-factor for higher assurance
Signing Order Set sequential or parallel signing to reflect required approvals
Conditional Fields Show or hide SOW-specific fields based on service selections
Retention & Copies Automatically store executed PDF and audit trail in contract repository

Technical Options for eSigning and Delivery

Choose a signing platform that supports required authentication, audit trails, and the file formats used by your teams.

  • File Formats: PDF, DOCX supported
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Audit & Security: Tamper-evident PDFs, signature timestamps

Confirm the chosen platform supports your records-retention policy, provides an auditable certificate, and meets any applicable compliance needs.

Key Dates and Timing to Note in an MSA

Track critical dates in the MSA and attached SOWs to avoid disputes over performance windows and payment timing.

Effective Date:

Date obligations begin; tie to MM/DD/YYYY format

SOW Start Date:

Project commencement per SOW

Payment Terms:

Net 30, Net 45, or milestone-triggered invoicing

Termination Notice:

Typical notice windows are 30–90 days

Renewal or Extension:

Automatic renewal clauses require advance notice

Milestone Sequence from Negotiation to Renewal

A sequential milestone view clarifies the lifecycle from signature through performance and renewal.

01

Negotiation

Draft terms, exchange redlines, and finalize SOWs before approval.

02

Execution

Obtain authorized signatures and distribute executed copies to stakeholders.

03

Performance

Deliverables are performed per SOW with acceptance and invoicing events.

04

Renewal or Closeout

Complete transition activities or renew SOWs per contract terms.

Security and Compliance Considerations

Encryption: AES-256 at rest; TLS 1.2/1.3 in transit
Audit Trail: Timestamped events and signer metadata
Access Controls: Role-based permissions and SSO
Certifications: SOC 2 Type II; ISO 27001 available
HIPAA Support: BAA available for covered workflows
21 CFR Part 11: Controls for FDA-regulated records

Common Errors to Avoid When Preparing an MSA

  • Leaving payment terms vague or inconsistent between the MSA and SOW, which can delay invoicing and collections for weeks or months.
  • Failing to confirm the signatory’s corporate authority, leading to disputes over whether the entity was validly bound by the agreement.
  • Omitting specific acceptance criteria in the SOW, causing disagreements on deliverable completion and withholding of final payments.
  • Not coordinating insurance and indemnity clauses with procurement, which may create coverage gaps during project incidents or claims.

Contractual Risks and Consequences of Errors

Breach Damages: Monetary liability exposure
Indemnity Claims: Third-party claim responsibility
Payment Delays: Cash-flow interruptions
Reputational Harm: Client relationship damage
Regulatory Risk: Data-protection noncompliance
Tax Withholding: Backup withholding risk

How Organizations Use an MSA in Practice

Real-world examples illustrate how MSAs speed contracting and provide consistent governance for recurring services.

Tech Data — Enterprise IT Services

Tech Data standardized supplier agreements to align internal and external workflows.

  • Streamlined approvals across divisions.
  • "Tech Data uses airSlate SignNow to improve our internal and external customer service while increasing our speed to revenue."

Optica Ventures — Consulting Engagements

A small services firm centralized terms to reduce repetitive negotiation.

  • Reduced turnaround time for proposals.
  • The firm reported easier client onboarding and more predictable contract terms for successive engagements.

eSignature Pricing Comparison for Executing MSAs

A neutral comparison of starter pricing and basic feature availability to help evaluate eSignature options for contract execution. Pricing reflects typical annual-billing tiers and common feature distinctions.

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 by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (premium) Varies by plan Varies by plan Varies by plan Varies by plan
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Varies by plan Varies by plan Varies by plan Varies by plan
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Practical Tips for Accurate and Efficient MSA Completion

Apply consistent internal controls and documentation standards to reduce risk and speed processing.

Standardize a Template
Maintain a negotiated standard MSA template approved by legal so only SOWs and a small set of exceptions need negotiation, shortening approval cycles and reducing legal review time.
Define Clear SOW References
Each SOW should reference the MSA by name and date and include precise acceptance criteria, milestones, and billing triggers to avoid later disputes over scope and payment.
Confirm Signatory Authority
Require written evidence of delegation for corporate signatories where internal approval thresholds exist; record the signing authority in the contract management system.
Preserve Audit Trails
Store executed PDFs and platform-generated certificates of completion together, ensuring timestamps, signer emails, and IP metadata are retained for evidentiary needs.

Common Questions About Professional Services MSAs

Answers to frequent questions about electronic execution, enforceability, notarization, signatory authority, amendments, and record retention.


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