Service Agreement Template + How to Customize It in 3 Simple Steps

“Anything that can go wrong will go wrong.”

That’s what Murphy’s Law says. Interesting, right? And it’s especially true when it comes to a service agreement.

Without a solid service agreement, things can quickly get messy. Misunderstandings about work, unclear payment terms, and unmet expectations can easily derail a project. A service agreement makes sure everything is clear from the start, so both you and your client are aligned on the details.

Through extensive research on service agreements, consulting with legal experts, reviewing case studies, and speaking with both service providers and clients, I’ve created a template that addresses common issues and protects both parties. 

We practically use this template in our business agreements. And here, you’ll get a free, customizable version to start with right away.

In this guide, I’ll show you how to easily customize the service agreement template to fit your business. We’ll cover the key components to include and share some best practices to ensure your agreement works well for both you and your clients.

Key Takeaways:

• A service agreement clearly defines the services, deadlines, and payment terms to keep both parties aligned.
  
• Use the customizable template to easily tailor your agreement to the specific needs of your project.
  
• Be sure to include contract details like service description, work schedule, and payment terms.
  
• Specify confidentiality clauses to protect sensitive information during and after the project.
  
• OneSuite helps you send and sign agreements digitally, ensuring a fast and secure process.

What is a Service Agreement? And Why You Need this for all services

A service agreement is a written contract between a service provider and a client that clearly outlines the terms of the work to be done. 

It includes key details like the scope of services, timelines, payment terms, and confidentiality clauses. This ensures both parties know their responsibilities.

With a basic service agreement template, you can easily customize it for your specific project. Whether you’re offering consulting, design, or IT services, using a template ensures everything is spelled out clearly, avoiding any misunderstandings along the way.

But wait… do you really need one?

Yes, and here’s why:

• Clarifies Expectations: Clearly defines what services will be provided.
  
• Prevents Scope Creep: Sets boundaries to avoid extra work without compensation.
  
• Protects Against Non-Payment: Outlines payment terms to ensure timely payments.
  
• Provides Legal Protection: Ensures both parties have a clear legal framework.

Download Your Free Customizable Service Agreement Template Now!

Before we get into all the details, if you’re just here for the template, go ahead and download it right now:

Template Link

It’s simple, easy to use, and covers all the important stuff you’ll ever need. 

But don’t go just yet! 

Stick around as we show you how to customize this template to fit your needs and make your projects run smoothly.

How to Customize a Service Agreement Template for Your Business

As the service agreement is a legally binding document, you might be scared a bit to see the jargon. Yes, I’ve gone through the same pain point. Also, it covers every bit of legal issues, so it may seem lengthy too.

The good news is I’ve got your back and made it easier for you. All you need is to just follow these simple steps to customize the template for your service type.

📌 Pro Tip

Offering SEO or digital marketing services? A ready-made SEO contract template helps you pre-define KPIs, reporting timelines, and deliverables without starting from scratch.

Fill in the Highlighted Gaps

Start by filling in the highlighted yellow blank spaces carefully. Then, click on “Highlight color” option at the toolbar and select “None”

Let’s take a quick glance what the gaps include:

• Both of the parties’ names and contact details. 
• Service provider’s required work schedule
• Starting date of service
• Specified cure period for breaching
• Name, Date and Signature
• Clear Description of services with fixed deadline
• Payment terms
• Number of shares granted

Use Exhibits A, B, and B1

These sections allow you to get into specifics about the deliverables, compensation, and allowable expenses.

Here’s what you need to do:

• Exhibit A: Outline your services clearly.
  
• Exhibit B: Define the payment terms.
  
• Exhibit B-1: Highlight any extra expenses that might be included.

Sign It and Get Signed Online

Once you’ve filled everything in, it’s time to sign the agreement! 

Use an easy-to-use platform like OneSuite to send and collect digital signatures. This makes the whole process fast, secure, and official. And the good news is, you can have a 14 day trial free of cost. So, why don’t you give it a try?

Here’s a video on how you can sign and send your service agreement online:

Key Components of a Service Agreement Template

So far so good? Let’s move on to the next part.

Ideally, a solid service agreement must include some key components that define the relationship between the service provider and the client. But to be honest, they can sound a bit dry or even overwhelming if you’re not familiar with the lingo.

So, let’s break down these mumbo jumbo legal terms into something you can actually understand. These include:

Confidential Information

Whether it’s business strategies, product designs, or anything proprietary, this clause ensures both parties keep the info private and secure. Even after the agreement ends. This way you keep your business protected. So you must define this properly in the agreement. 

For added protection, especially when exchanging sensitive client data or internal strategies, consider using a mutual NDA template alongside your service agreement.

In the template you’ll find this in section 4. Let’s make a glance what this section includes:

• Protection of Information: The Service Provider must keep all confidential information private and use it only for the client’s benefit.
• Third-Party Information The Service Provider cannot use or disclose confidential third-party information without permission.
• Other Rights The agreement supports the client’s legal rights to protect confidential information.

Payment Terms

This part is crucial. Specify the total project fee, how payments will be scheduled (e.g., upon execution of the agreement, milestones, or completion). 

You can also mention the acceptable payment methods (PayPal, bank transfer, etc.). If there are any penalties for late payments, include them here.

Ownership of Inventions

Who owns the ideas created during the project? This clause is described in section 5. 

It clarifies whether the service provider keeps the rights to inventions or if the client gets full ownership. It’s especially important for creative or tech-driven projects.

Solicitation of Employees, Consultants, and Other Parties

No stealing employees! 

Put simply, section 8 prevents either party from hiring key people involved in the project for a certain period after it’s completed. It helps protect both sides from unfair competition.

Indemnification

Basically, this means if someone breaks a window, they’re the one who pays to fix it.

It holds the service provider accountable for legal or financial issues, protecting the client from any extra burden. This includes anything from breaching the agreement to violating third-party rights, and ensures the service provider is responsible for fixing the situation.

Limitation of Liability

This clause keeps things balanced. It limits how much the service provider is on the hook for if something goes wrong. 

Basically, it’s the “Oops, I messed up…” cushion. So nobody ends up paying for a disaster they didn’t even create!

Independent Contractor

This is just a gentle reminder described in section 12. It specifies that the service provider is not an employee. They operate independently, so they don’t get the benefits or responsibilities of full-time employees.

It’s a clear distinction which ensures taxes, benefits, and work policies are handled separately.

Conflicts with Agreement

This clause ensures the service provider doesn’t have any conflicting obligations with previous agreements. It helps keep things stress-free and ensures both parties are aligned.

For example, it’s like making sure your chef isn’t running a competing restaurant on the side while cooking for your event. And, this way you avoid these awkward surprises!

Best Practices for Using Your Service Agreement Template Effectively

So, now you know what’s included in the template and what they actually mean. To get the most out of your service agreement template, here are some best practices:

• Be Specific

The more details you include, the less room there is for misunderstandings. Specify deliverables, payment terms and deadlines.

• Discuss the Terms

Have a conversation with your client about the terms before sending the agreement to ensure both parties are on the same page.

• Use Clear Language

Keep the language simple and easy to understand. Make sure you have properly conveyed the right information in the right place.

• Review Before Signing

Double-check all information for accuracy before finalizing the agreement to avoid any mistakes.

• Be Transparent About Costs

Clearly outline all costs involved, including any potential extra charges for additional work.

• Include Termination Clauses

Specify the conditions under which either party can terminate the agreement, ensuring there’s a clear exit strategy if things go wrong.

• Get Legal Advice if Needed

If you’re unsure about any part of the agreement, consider getting legal advice to ensure your interests are fully protected. Check out this article to know about USA state based service agreements.

Must Follow Compliances to Ensure Your Service Agreement is Legally Binding with Digital Signatures

My template covers literally every possible aspect of a service agreement.

However, your service agreement won’t protect you if:

Making Major Changes Without Consulting Legal Experts

Major changes to the agreement can have legal implications.

Always consult a legal expert before making significant modifications to ensure compliance and protect your interests.

Not Customizing the Highlighted Fields Properly

The highlighted fields are critical for tailoring the agreement to your specific needs. Failing to fill them in correctly can lead to misunderstandings or legal issues down the line.

And make sure to remove the color so that the template looks clean and professional.

Not Using Digital Tools to Send and Sign the Agreement

Until you (and your client) sign the template, it’s of no use, right? And without using a digital tool to send and sign the agreement, you risk missing important legal validations. The tools should have features like audit trails and signature certificates which ensure that the agreement is signed by the authorized parties.

I recommend using OneSuite because it’s simple, fast, and offers these key features.

Mistakes to Avoid When Using a Service Agreement Template

A minor mistake can have big consequences. Using a template without careful attention can lead to serious issues. No, I don’t want to scare you. Here are a few common pitfalls to watch out for:

• Unclear Payment Terms

Be explicit in Exhibit B about the payment schedule, including amounts, deadlines, and payment methods. This prevents confusion and delays.

• Failing to Specify Deadlines

 Always include realistic deadlines or milestones within the service description in Exhibit A to ensure everyone is aligned on timelines.

• Not Addressing Confidentiality Properly

Make sure the confidentiality clauses are clear, especially when handling sensitive or proprietary information, as outlined in Clause 4: Confidential Information.

• Ignoring Termination Procedures

Clearly specify the conditions for termination in Section 11, including how and when either party can end the agreement. This helps avoid potential legal disputes.

• Overlooking Ownership Rights

Be clear about the ownership of inventions and intellectual property in Section 5. This can prevent future disagreements about who owns the work created during the contract.

• No Dispute Resolution Clause

Consider adding a dispute resolution section that defines the process for resolving conflicts, whether through mediation, arbitration, or court proceedings.

Final Thoughts

A well-crafted service agreement is your best defense against Murphy’s Law wreaking havoc on your projects. 

With the right terms, clear expectations, and a solid template, you can avoid misunderstandings, scope creep, and payment issues. Basically, all the things that can go wrong.

Now that you know the key components and best practices for customizing your service agreement, don’t let paperwork be the thing that trips you up. Grab the free, customizable template, fill in the details, and get your agreements signed and sealed using OneSuite for fast, secure digital signatures.

And remember, using a service agreement isn’t just about covering your bases; it’s about building trust, clarity, and smoother business relationships with your clients. 

So, go ahead.

Get started today, and make your life just a little bit easier.