What Are The Features Of Service Agreement

Regardless of the underlying legislative or political authority, whether or not the service provider is a common service organisation under the Common Services Directive, and/or the financing mechanism at stake (appropriation, revolving fund or net voting authority), royalties or royalties for services may be based on costs, additional costs or any other agreed basis. For the purposes of this directive, the term « costs » is commonly used. Parties to a service agreement must define the appropriate basis for the service`s rate structure. This section describes the start and end dates of the agreement. The agreement can be renewed if both parties agree. It should be reviewed periodically by both parties to ensure its effectiveness and adequacy and, if necessary, to make adjustments. This section generally describes the mandates or capabilities of the parties involved and the overall purpose of the agreement. For example: « While Division A has the competence, capacity and expertise to provide XYZ service and is empowered to calculate and redistribute revenue from the provision of XYZ services » and « While Division B is a new unit that requires xYZ service, » « A Division agrees to provide Division A`s XYZ service on a cost-dependent basis. » Overview of the agreement — This first part contains the basis of the agreement, including the parties involved, the launch date and the generalization of the services rendered. This section describes the service.

It should also identify all the main service assumptions (for example. B, multi-channel strategies and priorities, as in a region). In order for ALS to have a « bite, » the non-level of service must have financial consequences for the service provider. More often than not, the integration of a service credit system is the most common way to achieve this. In essence, the service provider pays the customer an agreed amount that should be used as an incentive for performance improvement if the service provider does not meet or credit the agreed service standards. These service credits can be measured in different ways. Like what. B, if the 99.5% level for reports is not met, ALS could include a service credit, which is granted some price reduction for each performance gap of 0.5% per week. Service credits may also be granted if z.B. three or more errors occur to complete a level of service over a period of time. Here too, each level of service must be considered individually and a reasonable level of credit must be agreed between the service provider and the customer if the agreed level is not reached over a period of time.

It is important that the service credits are adequate and that they encourage the provider to do better and that they enter early enough to make a difference. The service provider and the customer must also define these service standards in relation to the expected workloads, and service levels may need to vary in light of any changes to these workloads during the contract.