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Supplier Services Contract

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SUPPLIER SERVICES CONTRACT

This Supplier Services Contract (the "Contract") is entered into as of by and between Supplier Name: (Supplier), having its principal place of business at , and Client Name: (Client), having its principal place of business at .

RECITALS

WHEREAS, Supplier is engaged in the business of providing the services described below and represents that it has the personnel, expertise and capability to perform such services in accordance with industry standards; and

WHEREAS, Client desires to engage Supplier, and Supplier agrees to provide such services, subject to the terms and conditions set forth in this Contract; and

WHEREAS, the parties intend for this Contract to set forth the parties' respective rights, obligations and remedies with respect to the performance of the services.

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

1. DEFINITIONS

For purposes of this Contract, the following terms have the meanings set forth below. "Services" means the tasks, deliverables and work product to be performed or delivered by Supplier as described in Section 2 and in any Statement of Work. "Statement of Work" means a written description, signed by both parties, that specifies the scope, schedule, fees and deliverables for particular Services. "Confidential Information" has the meaning set forth in Section 7.

2. SCOPE OF SERVICES

Supplier shall perform the Services described in the following summary and in any attached or subsequently executed Statement(s) of Work. The general scope is as follows:

Supplier will provide qualified personnel, equipment and supervision necessary to perform the Services in a professional and workmanlike manner consistent with prevailing industry standards. Supplier shall comply with Client's reasonable site rules and security procedures when on Client premises.

3. TERM

This Contract shall commence on and shall continue in effect until unless earlier terminated in accordance with Section 13. The term of each Statement of Work shall be as set forth therein.

4. FEES, INVOICING AND PAYMENT

Client shall pay Supplier the fees set forth in each applicable Statement of Work. The initial fee or estimated monthly charge is . Supplier shall submit invoices in accordance with the schedule in the applicable Statement of Work.

Unless otherwise stated, Client shall pay invoiced amounts within days of receipt. Late payments shall accrue interest at the lesser of 1.5% per month or the maximum amount permitted by law. Disputed amounts shall be notified in writing within fourteen (14) days and the undisputed portion shall be paid when due.

5. CHANGE ORDERS

Any change to the Services, schedule or fees shall be documented in a written Change Order signed by authorized representatives of both parties. Supplier will not be required to perform changed Services until a Change Order is executed. If the parties cannot agree on the impact of a proposed change, Client may either withdraw the proposed change or pursue termination rights under Section 13.

6. TAXES AND EXPENSES

Supplier is responsible for all federal, state and local taxes imposed on Supplier's employees and operations. Client shall reimburse Supplier for pre-approved out-of-pocket expenses reasonably incurred in providing the Services upon submission of substantiating receipts and invoices.

7. CONFIDENTIALITY

Each party shall treat as confidential all non-public information disclosed by the other party and designated as confidential or which should reasonably be understood to be confidential ("Confidential Information"). Confidential Information shall not include information that is (a) known to the receiving party prior to disclosure, (b) publicly available other than by breach of this Contract, (c) rightfully received from a third party without restriction, or (d) independently developed without use of the disclosing party's Confidential Information. The receiving party shall use Confidential Information only to perform its obligations and shall not disclose such information except to employees, agents or subcontractors who need access and are bound by confidentiality obligations at least as protective as those herein.

8. INTELLECTUAL PROPERTY

Subject to Client's payment of all amounts due, Supplier hereby grants to Client a nonexclusive, nontransferable license to use Supplier-delivered, Client-specific deliverables for Client's internal business purposes. Supplier retains all right, title and interest in and to Supplier's pre-existing materials, methodologies, tools and know-how. Any work product that by written agreement is designated as a "Work Made for Hire" shall be owned by Client; otherwise, Supplier grants Client a perpetual, worldwide, royalty-free license to such work product.

9. WARRANTIES; DISCLAIMER

Supplier warrants that the Services will be performed in a professional and workmanlike manner in accordance with industry standards. For any breach of this warranty, Supplier's sole obligation shall be to re-perform the deficient Services at no additional charge or, if Supplier cannot reasonably re-perform, to refund the fees paid for the deficient Services. EXCEPT FOR THE EXPRESS WARRANTY SET FORTH ABOVE, SUPPLIER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.

10. INDEMNIFICATION

Supplier shall indemnify, defend and hold harmless Client from and against third-party claims arising out of Supplier's negligent acts, willful misconduct or breach of this Contract, provided that Client promptly notifies Supplier of any claim, cooperates with Supplier in the defense and allows Supplier sole control of the defense and settlement. Client shall indemnify Supplier for claims arising from Client's misuse of the Services, Client-provided materials or Client's breach of this Contract.

11. LIMITATION OF LIABILITY

EXCEPT FOR LIABILITY ARISING FROM WILLFUL MISCONDUCT, GROSS NEGLIGENCE, BREACH OF CONFIDENTIALITY OR A PARTY'S INDEMNIFICATION OBLIGATIONS, IN NO EVENT SHALL EITHER PARTY'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS CONTRACT EXCEED THE TOTAL FEES PAID BY CLIENT TO SUPPLIER UNDER THIS CONTRACT IN THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO LIABILITY. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES.

12. INSURANCE

Supplier shall maintain insurance customary for suppliers in Supplier's industry, including commercial general liability and workers' compensation as required by law. Upon Client's request, Supplier shall provide certificates of insurance evidencing such coverage and naming Client as an additional insured where appropriate.

13. TERMINATION

Either party may terminate this Contract for material breach by the other party if the breaching party fails to cure the breach within thirty (30) days after receipt of written notice specifying the breach. Either party may terminate for convenience upon sixty (60) days' prior written notice. Upon termination, Client shall pay Supplier for Services performed and reimbursable expenses incurred through the effective date of termination.

14. NOTICES

All notices required or permitted under this Contract shall be in writing and delivered to the addresses set forth below or to such other address as a party designates by written notice in accordance with this Section. Notices shall be deemed given when delivered personally, when sent by nationally recognized overnight courier, or three (3) business days after being mailed by certified mail, return receipt requested.

15. ASSIGNMENT

Neither party shall assign or transfer its rights or obligations under this Contract without the prior written consent of the other party, which consent shall not be unreasonably withheld; provided, however, that either party may assign this Contract in its entirety to an affiliate or in connection with a merger, sale of substantially all assets or corporate reorganization provided the assignee assumes all obligations hereunder.

16. AMENDMENT; WAIVER

No amendment or modification of this Contract shall be effective unless in writing and signed by authorized representatives of both parties. No waiver of any provision shall be deemed a waiver of any other provision or a continuing waiver unless expressly stated in writing and signed by the waiving party.

17. GOVERNING LAW

This Contract shall be governed by and construed in accordance with the laws of the state of , without regard to its conflicts of laws rules. The parties submit to the exclusive jurisdiction of the state and federal courts located in that state for disputes arising under this Contract.

18. ENTIRE AGREEMENT

This Contract, together with all Statements of Work and Change Orders executed hereunder, 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 written or oral.

19. SEVERABILITY

If any provision of this Contract is held to be invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect and the parties shall negotiate in good faith a substitute, valid provision that most nearly effects the original intent of the parties.

20. COUNTERPARTS

This Contract may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures transmitted by electronic means shall be deemed original signatures for all purposes.

Supplier:

By:

Date:

Client:

By:

Date:

Enter text✕

What the Supplier Services Contract Is and When it's Used

A Supplier Services Contract is a written agreement between a buyer and a supplier that sets the terms for delivering services, specifying scope, pricing, performance standards, invoicing, liability, and termination. It clarifies responsibilities, timelines, acceptance criteria, intellectual property ownership, confidentiality, insurance requirements, and dispute resolution. For U.S. transactions, this contract can be executed electronically when parties meet ESIGN (15 U.S.C. ch. 96) and applicable state UETA requirements; some narrow exceptions (e.g., certain court filings, wills) remain ineligible for e-signature. The document functions as the primary commercial record for service delivery and payment.

Why a Clear Supplier Services Contract Matters

A well-drafted Supplier Services Contract reduces scope disputes, sets measurable acceptance criteria, allocates commercial risk, and establishes invoicing and payment mechanics. Clear terms speed procurement, limit litigation exposure, and provide a documented basis for insurance and compliance reviews.

Why a Clear Supplier Services Contract Matters

Who typically prepares and signs this agreement

Signatories usually include an authorized representative with explicit signature authority; see the Who Has Authority to Sign and Notarization sections for details.

  • Procurement managers and buyers — run vendor selection, negotiate pricing, and manage SLA enforcement.
  • Suppliers and account managers — confirm scope, propose deliverables, and accept payment terms.
  • In-house legal or outside counsel — review risk allocation, indemnities, IP assignment, and termination rights.

Core clauses to include in a professional Supplier Services Contract

Include these essential clauses to create an enforceable, operationally useful contract that protects both parties and reduces downstream disputes.

Scope of Work

Describe deliverables, milestones, acceptance criteria, and any excluded services. Use exhibits for detailed schedules and technical specifications to avoid ambiguity.

Payment Terms

State fees, invoicing cadence, payment method, late fees, and any retainers. Tie payments to accepted milestones or deliverable sign-offs to control cash flow.

Term & Termination

Specify contract duration, renewal mechanics, notice periods, termination for convenience and for cause, and post-termination transition assistance obligations.

Liability & Insurance

Limit direct damages, carve out exceptions for willful misconduct, and require supplier insurance types and minimum limits to match project risk.

Confidentiality & IP

Define confidential information, permitted disclosures, ownership or assignment of work product, and licenses granted for use of IP created under the contract.

Compliance & Audit

Include representations about legal compliance, data protection, recordkeeping, right-to-audit clauses, and any sector-specific addenda (e.g., HIPAA).

Step-by-step: completing the Supplier Services Contract

Follow this sequence to prepare, approve, and execute the contract with minimal rework.

  • 01
    Prepare draft: Populate parties, scope, fees, and term before internal review.
  • 02
    Legal review: Have counsel confirm liability, IP, and compliance language.
  • 03
    Operational sign-off: Obtain stakeholder approval for deliverables and acceptance criteria.
  • 04
    Execute: Sign using permitted method (electronic or wet signature) and distribute executed copies.

How to set up a digital signing workflow for this contract

Configure your e-signature workflow to match approval order, authentication needs, and document security.

Field Configuration
Signer Order Sequential or parallel routing depending on approval hierarchy
Authentication Email link, SMS code, or stronger KBA/2FA for high-risk agreements
Required Fields Make signature, date, and printed name mandatory
Audit Trail Enable full event logging (IP, timestamp) for evidentiary support

Typical route: where to send the Supplier Services Contract after signing

After execution, route copies to the essential operational and compliance recipients.

  • Procurement: Store final fully executed contract for contract management and renewal tracking
  • Accounts Payable: Send invoice schedule and remittance details for payment setup
  • Legal: Keep an executed copy for dispute resolution and audit trails
  • Project Owner: Deliver scope and contact details to those managing fulfillment

Digital signing essentials and systems to integrate

Integrate signing with contract repositories and finance systems to automate invoice creation, record retention, and audit reporting.

  • Authentication: Email, SMS, KBA
  • Integrations: CRM, ERP, cloud storage
  • File formats: PDF, DOCX, HTML

Key deadlines and timeline expectations

Track these critical dates to avoid performance or payment disputes and to comply with notice periods.

Effective Date:

Date when obligations and warranties begin; governs performance windows.

Signature Deadline:

Date by which all parties must sign to lock pricing or commencement.

Invoice Submission:

Deadline for supplier to submit invoices per payment terms.

Change Order Requests:

Timeline for submitting scope or pricing changes for approval.

Renewal Notice:

Advance notice required to renew or terminate the contract.

Milestone timeline from negotiation to contract closeout

Track these numbered milestones to keep the engagement on schedule and control approval bottlenecks.

01

Drafting Complete

Scope, fees, and standard clauses finalized prior to legal review.

02

Approvals Secured

Internal stakeholders and budget owners have signed off.

03

Execution

All authorized signatures collected and executed copies distributed.

04

Acceptance & Closeout

Delivery accepted, final invoice submitted, and retention records stored.

Common preparation mistakes to avoid

  • Using vague scope language that leaves deliverables open to interpretation and creates disputes over acceptance criteria.
  • Failing to confirm signatory authority or corporate name accuracy, which can delay payments or render the contract unenforceable.
  • Omitting billing or remittance details, causing invoice rejection or delayed payment processing by accounts payable.
  • Neglecting data protection and compliance clauses when services handle personal or regulated data, exposing parties to regulatory risk.

Penalties and business risks of an incorrect or incomplete contract

Payment Delays: Missing remittance details can delay payment and trigger interest fees.
Breach Liability: Ambiguous obligations increase the risk of litigation and damages.
Tax Exposure: Incorrect payee/TIN details may trigger backup withholding at 24%.
Regulatory Fines: Noncompliant data handling may result in HIPAA or state privacy penalties.
Operational Disruption: Undefined acceptance criteria can delay project start and revenue recognition.
Enforceability Issues: Improper execution or unauthorized signatures can render the agreement voidable.

How to download, save, and package the executed contract

Preserve executed copies in standardized formats and keep a bundled evidence package for future audit or dispute needs.

PDF Export

Save a PDF/A of the fully executed document that includes visible signatures and an embedded audit trail for evidentiary support.

Word Export

Keep an editable DOCX for internal recordkeeping and amendments, but treat PDF as the authoritative executed copy.

Signed Bundle

Create a single ZIP containing the executed PDF, audit log, attachments, and any supporting exhibits for archival storage.

Audit Report

Maintain a separate event log showing signer identity, timestamps, IP addresses, and authentication method for legal proof.

Practical tips for accurate and efficient contract completion

Apply these practices to reduce friction, speed execution, and lower downstream risk.

Use a single authoritative template
Standardize core terms across procurements and manage nonstandard clauses through tracked amendments to avoid divergent obligations.
Verify signer authority early
Confirm that the signer has written corporate authority or is an authorized officer to prevent enforceability challenges and payment delays.
Link exhibits clearly
Attach SOWs, pricing tables, and schedules as numbered exhibits referenced precisely in the main body to reduce interpretation risk.
Preserve electronic audit trails
Ensure your signing solution captures timestamps, IP addresses, and authentication events and stores them with the executed PDF for evidentiary support.

eSignature vendor pricing and feature comparison for Supplier Services Contracts

Compare common pricing starting points and feature availability for eSignature platforms used to execute Supplier Services Contracts; signNow is listed first per vendor ordering rules.

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 Verify Verify Verify Verify
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Verify Verify Verify

Frequently asked questions about Supplier Services Contracts and e-signing

Answers to common execution, authentication, and recordkeeping questions for Supplier Services Contracts in the United States.


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