Knowing the Different Types of Service Agreements To become a Certified Professional in Supply Management (CPSM), you need to learn a lot of things and one of which is to familiarize your self with the basics in contracting and negotiations. If you join our CPSM Training Review Programs, you’ll learn more CPSM Study Cheats, but for now we will teach you the different types of service agreements.Master Service Agreement Master Service Agreements contain most but not all of the terms between two contracting parties. The purpose of this type of contract is to speed up and simplify the future transactions of the parties involved. The tedious and time-consuming process only happens at the beginning. Lesser amount of documentation is needed for future transactions, such as an issuance of a job order or purchase order. Master Service Agreements are used in long-term client/vendor relationships. The service agreement may contain the following details:
- Payment terms
- Delivery requirement
- Warranties
- Intellectual Property Rights
- Dispute Resolutions
- Limitations
- Consulting
- Marketing jobs
- Design
- Software development
- Editing services
- Medical services
- Auditing
- Emphasize results related to output rather than how the work is performed;
- Deliverables, outcome and performance standards are clearly defined;
- Use of measurable performance standards and outcomes;
- Provide performance incentive and consequence for the non-performance of the deed; and
- Tie payment to deliverables.