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Technology Services Contract

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TECHNOLOGY SERVICES CONTRACT

This Technology Services Contract ("Agreement") is entered into as of Effective Date: by and between Service Provider Name: having its principal place of business at , and Client Name: having its principal place of business at .

RECITALS

WHEREAS, Service Provider is engaged in the business of providing technology services, including software development, systems integration, hosting, maintenance, and related technical consulting; and

WHEREAS, Client desires to obtain from Service Provider, and Service Provider agrees to provide to Client, certain technology services and deliverables as set forth in this Agreement and in one or more Statements of Work to be issued hereunder; and

WHEREAS, the parties intend to set forth the terms and conditions governing the provision, acceptance, payment, and ownership of such services and deliverables.

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

1. DEFINITIONS

1.1 "Services" means the technology services, deliverables, and related work products to be provided by Service Provider to Client as described in an applicable Statement of Work. "Statement of Work" means a document executed by the parties describing the Services, deliverables, schedule, acceptance criteria, and fees.

1.2 "Confidential Information" means nonpublic information disclosed by one party to the other, including but not limited to technical data, trade secrets, software, business plans, customer lists, and pricing.

2. SCOPE OF SERVICES

2.1 Services shall be provided as described in each Statement of Work issued under this Agreement. Each Statement of Work shall incorporate and be governed by the terms of this Agreement. The parties may execute multiple Statements of Work.

2.2 Service Provider shall perform the Services in a professional and workmanlike manner consistent with industry standards and shall assign personnel with appropriate skills and experience.

3. TERM

The initial term of this Agreement shall commence on the Effective Date and continue for a period of , unless earlier terminated in accordance with Section 13. Thereafter, the Agreement shall renew as set forth in the applicable Statement of Work or by written agreement of the parties.

4. FEES AND PAYMENT

4.1 Client shall pay Service Provider fees in the amounts and on the schedule set forth in each Statement of Work. Fees due to Service Provider are exclusive of taxes levied on the transaction, which shall be paid by Client unless Client provides a valid exemption certificate.

5. CHANGE ORDERS

No change to the scope, deliverables, schedule, or fees shall be effective unless documented in a written Change Order signed by both parties. Each Change Order shall specify the impact on fees and schedule and shall become incorporated into the applicable Statement of Work.

6. CONFIDENTIALITY

6.1 Each party shall treat as confidential all Confidential Information disclosed by the other party and shall not use or disclose such Confidential Information except as necessary to perform its obligations under this Agreement or as required by law.

6.2 Confidential Information does not include information that (a) is or becomes publicly available other than by breach of this Agreement, (b) is rightfully received from a third party without restriction, or (c) is independently developed without use of the other party's Confidential Information.

7. INTELLECTUAL PROPERTY

7.1 Preexisting intellectual property owned by a party prior to the Effective Date shall remain the sole property of that party. Each party grants the other only a limited license to the extent necessary to perform under this Agreement.

7.2 Unless otherwise provided in a Statement of Work, Service Provider grants Client a perpetual, nonexclusive, worldwide, royalty-free license to use Deliverables specifically identified as Client-owned deliverables, subject to Client's payment of all fees due. Service Provider retains ownership of underlying tools, methodologies, and general know-how.

8. WARRANTIES; DISCLAIMER

8.1 Service Provider warrants that Services will be performed in a professional and workmanlike manner consistent with industry standards for a period of following delivery. Service Provider's sole obligation and Client's exclusive remedy for breach of this warranty shall be re-performance of the deficient Services.

8.2 EXCEPT AS EXPRESSLY STATED IN SECTION 8.1, THE SERVICES ARE PROVIDED "AS IS" AND SERVICE PROVIDER DISCLAIMS ALL OTHER EXPRESS AND IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

9. LIMITATION OF LIABILITY

Except for liability arising from a party's gross negligence, willful misconduct, or breach of Section 6 (Confidentiality) or Section 11 (Indemnification), the aggregate liability of either party under this Agreement shall not exceed the total fees paid by Client to Service Provider under the applicable Statement of Work during the twelve (12) months preceding the claim.

10. INDEMNIFICATION

10.1 Service Provider shall indemnify, defend and hold Client harmless from and against all third-party claims alleging that the Deliverables infringe a third party's patent, copyright or trade secret, provided that Client (a) promptly notifies Service Provider in writing of the claim, (b) allows Service Provider to control the defense and settlement, and (c) provides reasonable assistance and authority to settle or defend the claim.

10.2 Client shall indemnify, defend and hold Service Provider harmless from claims arising from Client's use of Deliverables in violation of this Agreement or Client-provided materials.

11. INSURANCE

Service Provider shall maintain insurance customary for providers of similar services, including commercial general liability and professional liability coverage in commercially reasonable amounts. Upon request, Service Provider will provide certificates evidencing such coverage.

12. SUBCONTRACTING

Service Provider may engage subcontractors to perform portions of the Services, provided Service Provider remains responsible for the subcontracted work and ensures subcontractors comply with the confidentiality and security obligations in this Agreement.

13. TERMINATION; SURVIVAL

13.1 Either party may terminate this Agreement (or any Statement of Work) for material breach by the other party if the breaching party fails to cure such breach within days after written notice.

13.2 Upon termination, Client shall pay Service Provider for Services performed and expenses incurred through the effective date of termination. Sections concerning Confidentiality, Intellectual Property, Indemnification, Limitation of Liability, and any payment obligations shall survive termination.

14. TRANSITION; DATA RETURN

Upon expiration or termination, Service Provider shall provide reasonable transition services and return or securely destroy Client Data as directed by Client. If transition services are requested, the parties shall agree on fees and schedule in a Statement of Work.

15. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth below by certified mail, courier, or email with confirmation of receipt. Notice is effective upon receipt.

16. ASSIGNMENT; AMENDMENT; WAIVER

Neither party may assign this Agreement without the other party's prior written consent, except to an acquirer of substantially all of its assets or equity. This Agreement may be amended only by a written instrument signed by both parties. No waiver shall be effective unless in writing and signed by the waiving party.

17. COUNTERPARTS; ELECTRONIC SIGNATURES

This Agreement 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 binding.

18. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

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

This Agreement, together with all Statements of Work, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

19. ADDITIONAL REPRESENTATIONS

Each party represents and warrants that it has the corporate power and authority to enter into this Agreement and that the individual signing on its behalf is authorized to do so.

Service Provider Printed Name:

By:

Date:

Client Printed Name:

By:

Date:

Enter text✕

What a Technology Services Contract Is and when it applies

A Technology Services Contract is a written agreement that defines the scope, deliverables, timeline, payment, intellectual property, confidentiality, and acceptance criteria for work performed by a technology provider. Typical engagements covered include software development, managed IT services, cloud hosting, system integration, and support. The contract allocates risk between parties, sets performance expectations, and specifies remedies for breach. Well-drafted contracts also address data security, regulatory compliance, service levels, change control, and termination rights to reduce disputes and enable predictable delivery.

Why a formal Technology Services Contract matters

A clear contract protects both parties by documenting obligations, pricing, IP ownership, confidentiality, and dispute resolution. It reduces ambiguity that can cause delays, unexpected costs, or loss of rights.

Why a formal Technology Services Contract matters

Typical parties who draft, review, or sign this contract

Organizations and individuals who rely on Technology Services Contracts include vendors, in-house IT teams, procurement, legal departments, and contracting managers responsible for operational delivery.

  • Technology vendors and consultants who supply development, hosting, or managed services and need clear scope and payment terms.
  • Corporate procurement and IT teams who must manage vendor SLAs, security obligations, and integration responsibilities.
  • Legal and contracting teams that negotiate IP, liability caps, indemnities, and compliance provisions.

Use the contract whenever services, deliverables, or access to systems are exchanged so roles, timelines, and liabilities are formally recorded.

Core elements to include in a professional Technology Services Contract

A thorough contract balances operational detail with legal protections. The following sections are commonly included to make obligations, timelines, and remedies clear while supporting compliance and dispute avoidance.

Scope of Services

Describe tasks, deliverables, acceptance criteria, and exclusions so both parties share a single measurable expectation for work performed.

Payment Terms

Specify fees, billing schedule, invoicing process, late fees, expenses, and any milestones tied to payment to avoid disputes over compensation.

Intellectual Property

Allocate ownership of preexisting IP, new work product, and licensing rights; include assignment or work-for-hire language where transfer of copyright is intended.

Confidentiality

Define confidential information, permitted uses, duration of secrecy obligations, and carve-outs for required disclosures or public domain information.

Security & Compliance

State security standards, data handling, breach notification timelines, and regulatory obligations (HIPAA, PCI DSS, FERPA) as applicable.

Termination & Remedies

Set termination rights for convenience and cause, notice periods, transition assistance, and limits on liability and indemnities.

Step-by-step: completing a Technology Services Contract

Follow these sequential steps to prepare, review, and execute the agreement with minimal rework.

  • 01
    Draft: Populate scope, deliverables, milestones, payment, IP, and security provisions.
  • 02
    Review: Legal and technical teams confirm obligations, risk allocation, and compliance requirements.
  • 03
    Negotiate: Address points of disagreement and finalize amendments or SOW attachments.
  • 04
    Sign: Execute using an authorized signer and retain the signed record in a secure repository.

Typical routing and approval workflow for this contract

Contracts normally flow through a small set of functional reviewers before final signature; map reviewers early to avoid delays.

  • Initiation: Requestor prepares draft or SOW and uploads contract to the review system.
  • Technical Review: Engineering or IT confirms feasibility, timelines, and integration needs.
  • Legal Review: Legal checks IP, indemnities, and compliance clauses and suggests edits.
  • Execution: Authorized signers apply signatures and copies are distributed to stakeholders.

Recommended e-signature workflow settings for Technology Services Contracts

Configure your digital workflow to mirror the contract approval steps and record all actions for auditability.

Field Configuration
Signature Order Sequential signing to enforce approval order for legal and finance signatories.
Authentication Email plus optional SMS code for stronger signer attribution.
Template Save as a reusable template with locked core clauses and variable SOW fields.
Notifications Enable reminders and completion notices for signers and contract owner.

Technical and integration needs to support e-signing

Confirm platform compatibility, integrations, and file formats before sending the contract for signature.

  • Integrations: Salesforce, NetSuite, Microsoft 365 supported for routing
  • File Types: PDF, DOCX, and HTML accepted for upload and signing
  • Authentication: Email, SMS, and advanced options as needed

Ensure audit trails, secure storage, and retention settings align with your legal and regulatory obligations.

Comparing e-signature vendor pricing and key features

Basic cost and feature comparisons help choose an e-signature provider suited to contract volume and compliance needs.

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
HIPAA Compliant Yes Yes Yes No No

Security and compliance items to include or verify

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certifications: SOC 2 Type II and ISO 27001
Regulatory Support: ESIGN, UETA compatibility
HIPAA: BAA required for PHI handling
21 CFR Part 11: Compliant controls available for FDA records
Accessibility: WCAG 2.0 Level AA support

Common penalties, financial risks, and compliance consequences

1099 Penalties: $60/$130/$330 per form for late or incorrect filings
Intentional Disregard: $660+ per form with no maximum under IRC §6721
I-9 Violations: $281–$2,789 per violation for paperwork failures
Backup Withholding: 24% withholding triggered by missing or incorrect TIN
Data Breach Liability: Regulatory fines and mitigation costs vary by breach and statute
Contractual Damages: Incorrect terms may expose parties to indemnity and liability claims

Frequent drafting and execution mistakes to avoid

  • Using vague scope language that omits deliverable formats or acceptance tests, which commonly leads to disputes and scope creep.
  • Failing to name the correct legal entity or authorized signer, which can delay payment or limit enforceability in court.
  • Omitting data-security or compliance clauses when handling regulated data, exposing parties to regulatory fines and breach costs.
  • Neglecting change-control procedures and pricing adjustments for out-of-scope work, causing billing disagreements and project delays.

Key dates and deadlines to track in the contract

Document and calendar critical dates clearly so parties can manage performance, invoicing, and termination windows.

Effective Date:

Start date for obligations and the trigger for timelines

Payment Milestones:

Dates or deliverable events when invoices become due

Project Start:

When work or access provisioning must begin

Delivery Deadlines:

Milestone dates for deliverables and acceptance testing

Termination Notice:

Contractual notice period for convenience or cause terminations

Contract lifecycle milestones from initiation to closeout

A sequential milestone view helps teams coordinate approvals, delivery, and transition activities across the project lifecycle.

01

Proposal and SOW Finalized

Draft SOW and attach to the master agreement before approvals.

02

Approvals and Signatures

Legal, finance, and authorized business signers confirm and execute the agreement.

03

Delivery and Acceptance

Provider delivers work; client performs acceptance testing per defined criteria.

04

Transition or Termination

Complete knowledge transfer and return or delete client data per contract.

Comparing a Master Services Agreement and a Statement of Work

Contracts commonly use a master agreement plus SOWs to separate recurring terms from project-specific details.

Criteria Master Services Agreement Statement of Work
Purpose ongoing legal terms specific project details
Length longer, boilerplate shorter, technical
Amendments less frequent common per project
Signatures one-time per term per sow or project

FAQs and troubleshooting for Technology Services Contracts

Answers to frequent questions about e-signing, enforceability, notarization, amendments, and recordkeeping for technology contracts.


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