Understanding the Service Provision Agreement: Functions and How-To

The contract for the provision of services is certainly one of the most concluded daily in the most diverse environments, after all, the volume of provision of specialized services only tends to rise, since this modality already corresponds to a very important part of the entire national GDP.

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And to understand more about how to execute this type of important contract in the best possible way, you can take advantage of this post to prepare increasingly complete and secure service contracts. If you want to deepen your knowledge on the subject even more, we also recommend reading the post: The different types of contracts and their characteristics.

What is service provision?

We can consider as service provision any type of specialized labor, whether physical or intellectual, which is contracted by third parties for a specific service, for a limited time or on different occasions.

It is a type of service that does not have the same regularity or support as employment with a formal contract, for example, since each time it is requested, there is a new contract.

Within this category we can include an immense number of professionals: from those who design and execute works, repairs, installations, as well as intellectual services, such as translations, mentoring, classes, advice and so many other modalities.

What is a service contract?

Like other types of contracts, this document is responsible for Conclude an agreement between two parties - the contractor and the professional who will perform the service.

It is important that they appear in it In detail the data of both parties, as much detail as possible of the information related to the contracted service and also the different clauses that may involve its execution on certain occasions, as well as all the resources involved in its execution.

The service contract gains legal properties when duly signed by all parties.

The importance of service contracts

The combination is not expensive, is it? On a number of occasions in our daily lives, we rely on the specialized services of different types of professionals, and we are not always lucky that these different professionals are people we know closely, so the best thing is to always have some security when dealing with new people, isn't it?

The same goes for the professional service provider, who needs guarantees about the terms of execution of their service to guarantee the Receipt agreed and proportional to your activity.

On any occasion, the service contract is an important document for legally materialize the execution of a service and, more than that, to make that service exist in the accounting books of both parties, so that the professional can collect taxes on their activities and the contractor can prove activities that consume their income.

A well-designed service contract is the key to ensuring transparency, accountability, and legal certainty, in addition to legally aligning the interests and expectations of both parties regarding the service to be performed.

How to make a contract for the provision of services?

The first step is to gather all relevant information from both the contractor and the contractor, so that the agents are well identified.

The type of contract, as well as the nature of the services provided, must be described in detail, considering:

• The object of the service (when there is, such as a property, a car, a property to be repaired or an asset to be prepared)
• The period of execution of the service and/or its estimated delivery date
• The supplies and accessories needed for the service, described in numerical volume and value details
• Execution details, such as different stages and their respective periods
• The contractor's specifications, to the extent that the contractor deems it necessary
• The value of labor and its final product.

The more details, The higher the guarantees that both parties are secure in their execution.

After the discrimination of all these details, it is very important that the different clauses competent for that provision of service are presented, in them it is possible to specify circumstances and their occasional burdens, sanctions or benefits, such as:

• Penalties if one of the parties terminates the contract;
• Measures in case of delays or failures in the execution of the service;
• Bonus in case of results obtained above the contractor;
• Extension of the period of service under certain conditions;
• Other specifications that each of the parties deems appropriate.

Finally, it is very important that the contract is duly signed by all parties involved.

More and more professionals are providing services of Remote way, which makes it difficult to recognize each party's signature in the district, a process that may unnecessarily delay the conclusion of a contract.

That is why it is important to have electronic signature services, which allow different secure and legal value devices so that both parties have legal protection over the contract with all the convenience without losing any security. Learn more about this optimization in our post “How to make an electronic signature”.

A ClickSign offers a set of solutions from drafting to signing, authentication and also your storage in a safe manner. Check out our services and also take advantage of our blog to learn more important discussions about the future for entrepreneurs!