Whether you are an independent contractor or a hiring manager who is seeking an independent contractor to provide you and your company the quality service that it deserves, then you are definitely on the right page of the article. A service agreement is nonetheless a formal agreement examples between two or more parties that entails and specifies the terms and conditions of a certain service and customer relationship, according to Wikipedia.
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It also has three functions that are acting as a standardization on assessing the performance, results, and the output of an independent contractor, setting up and discussing expectations for both the client and the independent contractor and giving a sequence of resolution with regards to related matters.You can also check out this page’s Sample Agreements that you may find useful as a reference.
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Typically, it is highly recommended for everyone, especially if you are one of the involving parties in terms with having to sign service agreements and such. You can also consider checking out some examples of Service Level Agreements and also some examples of Consulting Services Agreements that you can find useful and helpful toward your career journey and growth. Below are a number of example arrangements as to when it is appropriate to use and apply service agreements and its corresponding definition:
- Bilateral Service Arrangement – this type of service arrangement can be usually found in small groups and departments, also agencies. It is where one department would provide a certain service through a service-by-service basis to other departments or clients alike. Similarly, the involving parties in a bilateral agreement would include the client of a certain department and the service provider of a certain department.
- Co-op Sharing Service Arrangement – this type of arrangement is usually hosted or guided by certain participating organizations and departing through a management committee. According to Service Canada, some certain participating departments would also house and accommodate the service arrangement. Other than that, co-op sharing service arrangements can be usually found in small department group and agencies alike.
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- Cluster Group Service Arrangement – this kind of service agreement is said to be usually and typically found in a scope of a human resource, material systems, or finance software that is usually inclined to ERP or enterprise resource planning. This kind of service arrangement in particular has a more sophisticated structure and governance alongside with the technical committees, director general, and the assistant deputy minister, according to Service Canada.
- Shared Service Arrangement – in this type of service arrangement, governance is through a board of directors of a business, company, or a charitable nonprofit organization. Its economic shared service model is designed to look like it is capable for large-scale economies. It also has a mandate to provide services to internal clients, which commonly and generally includes the scope of human resources and finance.
- Common Service Arrangement – this type of service arrangement has actually two sub-types, which are the mandatory and the optional. For the mandatory service arrangement, it is either mandate through policies or legislation. Also, mandatory service arrangements are also funded through appropriations unlike the optional service arrangements, which are mainly funded on cost recovery. Moreover, you can also consider checking out and having a look at the examples of Master Service Agreements that can help you get more insights.
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