Establishing secure connection…Loading editor…Preparing document…

Service Delivery Agreement

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

SERVICE DELIVERY AGREEMENT

This Service Delivery Agreement ("Agreement") is entered into as of by and between Service Provider: with principal place of business at , and Client: with principal place of business at .

RECITALS

WHEREAS, Provider has expertise and experience in providing the services described herein, and is willing to perform such services for Client on the terms and conditions set forth in this Agreement;

WHEREAS, Client desires to retain Provider to perform the services described below and Provider agrees to provide those services in accordance with this Agreement;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

SCOPE OF WORK

Provider shall perform the services described in the Description of Services in a professional and workmanlike manner, consistent with industry standards. Deliverables, milestones, acceptance criteria, and any performance standards applicable to the Services shall be as set forth in the Description of Services or in attachments incorporated herein.

PAYMENT TERMS

Provider shall submit invoices in accordance with the Payment Schedule. Client shall pay each undisputed invoice within days of receipt. Unless disputed in good faith in writing within that period, invoices will be deemed accepted.

Overdue amounts shall accrue interest at the late fee rate specified above, or if no rate is specified, at the lesser of 1.5% per month or the maximum rate permitted by law. Client shall also reimburse Provider for reasonable collection costs and attorneys' fees incurred in collecting overdue amounts.

TERM AND TERMINATION

This Agreement commences on Start Date: and continues until End Date: unless earlier terminated in accordance with this Agreement.

Either party may terminate this Agreement for cause upon written notice if the other party materially breaches any provision and fails to cure within days after receipt of written notice of such breach. Either party may terminate without cause upon days' prior written notice.

CONFIDENTIALITY

"Confidential Information" means non-public information disclosed by a party in connection with this Agreement that is designated confidential or that reasonably should be understood to be confidential. Each receiving party shall: (a) use the Confidential Information solely to perform its obligations under this Agreement; (b) protect Confidential Information with the same degree of care it uses to protect its own confidential information, but no less than reasonable care; and (c) not disclose Confidential Information to any third party except to employees, agents or contractors who need to know and are bound by confidentiality obligations at least as protective as those herein. Confidential Information does not include information that is or becomes generally available to the public other than by a breach of this Agreement, or that was rightfully in the receiving party's possession prior to disclosure.

INTELLECTUAL PROPERTY & DELIVERABLES

Unless otherwise agreed in writing, Provider shall retain ownership of all pre-existing intellectual property and tools used to deliver the Services. Upon full payment of all amounts due, Provider grants Client a perpetual, non-exclusive, non-transferable license to use deliverables specifically created for Client under this Agreement solely for Client's internal business purposes. Provider retains the right to use general skills, techniques, concepts and know-how developed during performance.

INDEMNIFICATION & LIMITATION OF LIABILITY

Each party shall indemnify and hold harmless the other party from and against all third-party claims arising from its gross negligence, willful misconduct, or material breach of this Agreement. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES. EXCEPT FOR LIABILITY ARISING FROM A PARTY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, THE AGGREGATE LIABILITY OF EITHER PARTY ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL NOT EXCEED THE TOTAL AMOUNTS PAID OR PAYABLE BY CLIENT TO PROVIDER UNDER THIS AGREEMENT DURING THE SIX (6) MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

NOTICES

All notices shall be in writing and delivered by hand, nationally recognized overnight courier, certified mail (return receipt requested), or email to the addresses specified above. Notices are effective upon receipt.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to choice of law rules.

ENTIRE AGREEMENT; AMENDMENT

This Agreement, including any exhibits and attachments hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals and communications, whether oral or written. Any modification or amendment to this Agreement must be in writing and signed by authorized representatives of both parties.

MISCELLANEOUS

The parties are independent contractors. Nothing in this Agreement creates a partnership, joint venture, employment, or agency relationship. If any provision is held invalid or unenforceable, the remainder shall be enforced to the maximum extent permitted by law. The parties agree to attempt in good faith to resolve disputes promptly through negotiation prior to initiating formal proceedings.

Service Provider

Printed Name:

By:

Date:

Client

Printed Name:

By:

Date:

Enter text✕

What a Service Delivery Agreement covers

Service Delivery Agreement (SDA) is a contractual document that defines the scope, responsibilities, performance standards, deliverables, timelines, and payment terms between a service provider and a client. It specifies service levels, acceptance criteria, change control, remedies for nonperformance, and reporting requirements. The SDA names the parties, key contacts, termination rights, confidentiality obligations, and intellectual property ownership. Organizations use the SDA alongside statements of work, purchase orders, or master services agreements to govern delivery, invoicing, audits, and vendor performance management.

Why a clear Service Delivery Agreement matters

A well-drafted Service Delivery Agreement sets expectations, allocates risks, and documents measurable service levels and remedies. It reduces disputes, supports consistent invoicing, and provides an audit-ready record of responsibilities and performance for both commercial and regulated engagements.

Why a clear Service Delivery Agreement matters

Typical organizations and roles that complete this agreement

Organizations and roles that commonly complete a Service Delivery Agreement include vendor operations, procurement, account managers, and in-house legal teams.

  • Managed service providers, IT vendors, and professional services firms handling client engagements.
  • Corporate procurement and vendor management teams managing contracts and SLAs across business units.
  • Healthcare, finance, and education administrators who require documented service levels and privacy controls.

Assign the appropriate signatory and operational owners before execution to ensure obligations are monitored and invoices are aligned with performance milestones.

Who signs the agreement and why their authority matters

Vendor CEO

As the vendor's chief executive or delegated officer, this signer certifies delivery obligations, accepts liability for subcontractors, and confirms that the services described match proposals. Maintain evidence of corporate authorization before signature to avoid later challenges to authority.

Client Officer

The client's authorized officer verifies acceptance criteria, approves payment terms, and agrees to change control procedures. If signing for an entity, attach a corporate resolution or procurement authorization to document signing authority and reduce enforceability disputes.

Security and compliance items to record in the SDA

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certifications: SOC 2 Type II and ISO 27001 available
HIPAA BAA: BAA required for protected health information
Audit Trail: Signed record with timestamps and IP addresses
Access Controls: Role-based permissions and activity logging
Authentication: Email, SMS, or advanced signer authentication options

Key legal and financial risks to document explicitly

Performance Breach: Failure to meet SLAs
Late Payment: Interest, collection costs
Confidentiality Loss: Data breach penalties
Intellectual Property: Ownership disputes
Regulatory Noncompliance: Fines or suspension
Invalid Signature: Contract unenforceable risk

Common preparation errors to avoid

  • Vague scope language that leaves deliverables undefined, causing disputes about what work was promised.
  • Missing effective date or milestone dates, which complicates invoicing, warranties, and statute of limitations calculations.
  • Failing to document change control procedures, permitting scope creep and billing disagreements during the engagement.
  • Signing without verifying signer authority or required supporting corporate resolutions, which can render the agreement unenforceable.

Step-by-step: completing a Service Delivery Agreement

Follow these steps to prepare, review, and execute a Service Delivery Agreement consistently and with audit-ready records.

  • 01
    Draft core terms: Define scope, deliverables, payment, and SLAs.
  • 02
    Identify parties: Use legal entity names and authorized contacts.
  • 03
    Add compliance clauses: Include privacy, data security, and industry addenda.
  • 04
    Execute and archive: Collect signatures and retain the signed record.

How to configure a digital workflow for the SDA

Set up digital fields and routing so signatures, approvals, and records are captured in a repeatable process.

Field Configuration
Signer Authentication Email link by default; add SMS or KBA for higher assurance
Field Types Signature, initials, date, text, dropdown for controlled values
Routing Order Define sequential or parallel signing as needed
Notifications Enable reminders and completion notifications for audit

Typical e-signing flow for a Service Delivery Agreement

A standard online signing workflow reduces turnaround time and preserves an auditable trail of each action and acceptance.

  • Upload document: Sender uploads final SDA to the signing platform.
  • Place fields: Add signature, date, and required data fields.
  • Add signers: Enter emails and set authentication levels.
  • Complete signing: Signers receive copies and the system records the audit trail.

Technical requirements for digital execution and distribution

Ensure the eSignature platform supports required security, formats, and integrations before sending the agreement.

  • File formats: PDF and DOCX are standard; preserve original formatting.
  • Integrations: Supports Salesforce, NetSuite, Google Workspace, and Microsoft 365
  • Authentication: Options: email, SMS, or advanced signer verification

Essential clauses to include in a professional SDA

A comprehensive Service Delivery Agreement is organized into clear clauses that allocate rights, obligations, and remedies between parties.

Parties

Identify legal entity names, business addresses, and authorized representatives. Distinguish between billing, operational, and legal contacts to prevent ambiguity and ensure proper notice delivery.

Scope

Describe services, deliverables, acceptance criteria, and exclusions. Use measurable milestones and clear deliverable definitions to reduce interpretation disputes and scope creep.

Service Levels

Specify performance metrics, measurement intervals, reporting cadence, and remedies such as credits or termination rights tied to missed SLAs to maintain accountability.

Payment Terms

Detail pricing, invoicing schedule, taxes, expense reimbursement, late payment interest, and conditions for withholding payment or suspending services.

Confidentiality & IP

Allocate ownership of deliverables, license grants, and confidentiality obligations. Clarify whether work product is assigned or licensed and disposition of preexisting IP.

Termination

List termination for cause and convenience, notice periods, transition assistance obligations, and post-termination data return or destruction requirements.

Typical timing elements and deadlines to define

Document explicit dates and periods to align milestones, invoicing, and notice obligations across the engagement lifecycle.

Effective Date and Term:

State start date (MM/DD/YYYY) and fixed or evergreen term length.

Milestone Dates:

Specify delivery target dates and acceptance windows for each milestone.

Invoicing Schedule:

State payment timing (for example, Net 30) and invoice submission rules.

Notice Periods:

Define notice windows for breach, termination, and change requests.

Remediation Deadlines:

Set cure periods for performance failures and SLA remediation timelines.

Key milestones from proposal to acceptance

Use a milestone sequence to communicate the delivery lifecycle and the points where acceptance or billing is triggered.

01

Proposal Approval

Stakeholders approve scope and pricing before contract drafting.

02

Contract Execution

Agreement is signed and effective date is established.

03

Service Commencement

Provider begins work per the agreed schedule and milestones.

04

Acceptance Review

Client reviews deliverables and issues acceptance or remediation requests.

Typical eSignature vendor comparison for signing Service Delivery Agreements

Compare core pricing and capabilities for signing and managing Service Delivery Agreements. signNow is listed first per platform comparisons; verify vendor details before purchase.

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 Limited free plan Limited free 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 by plan Varies by plan Varies by plan

Frequently asked questions about Service Delivery Agreements

Answers to common questions on execution, e-signing, signatures, and enforceability for U.S. transactions.


Need help? Contact support

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