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Service Delivery Agreement for the United Kingdom

Service Delivery Agreement Template for England and Wales

A Service Delivery Agreement is a legally binding contract governed by the laws of England and Wales that establishes the terms and conditions under which a service provider will deliver specified services to a customer. It outlines service levels, performance metrics, payment terms, and the responsibilities of both parties. The agreement includes provisions for quality standards, reporting requirements, and remedies for breach of contract, while ensuring compliance with UK legislation including the Supply of Goods and Services Act 1982 and related regulations.

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Service Delivery Agreement

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What is a Service Delivery Agreement?

The Service Delivery Agreement is essential for organizations engaging external service providers in England and Wales. This contract type is specifically designed to protect both parties' interests by clearly defining service scope, performance standards, and operational requirements. It's particularly crucial when establishing long-term service relationships or when services are critical to business operations. The agreement incorporates key provisions required under English law, including service level commitments, payment terms, and risk allocation. It's commonly used across various sectors and can be adapted to accommodate different service delivery models while maintaining compliance with UK regulatory requirements.

What sections should be included in a Service Delivery Agreement?

1. Parties: Details of the contracting parties including full legal names, registered addresses, and company numbers

2. Background: Context of the agreement, including purpose and high-level objectives of the service arrangement

3. Definitions: Defined terms and interpretations used throughout the agreement

4. Services: Detailed description of services to be provided, including scope and deliverables

5. Service Levels: Performance standards, metrics, and measurement methodology

6. Charges and Payment: Pricing structure, payment terms, invoicing process, and late payment provisions

7. Term and Termination: Contract duration, renewal terms, termination rights and consequences

8. Liability and Indemnities: Risk allocation, limitation of liability, and indemnification provisions

9. Confidentiality: Protection and handling of confidential information

10. Governing Law: Applicable law (England and Wales) and jurisdiction clauses

What sections are optional to include in a Service Delivery Agreement?

1. Change Control: Process for managing changes to services, applicable for complex or long-term arrangements

2. TUPE: Transfer of employees provisions when service delivery involves potential staff transfers

3. Force Majeure: Provisions for handling unforeseen circumstances and events beyond parties' control

4. Data Protection: Specific obligations under UK GDPR and Data Protection Act 2018 when personal data is processed

5. Anti-Bribery and Corruption: Compliance obligations under the Bribery Act 2010 for high-risk or public sector contracts

What schedules should be included in a Service Delivery Agreement?

1. Schedule 1 - Service Description: Detailed technical specification of services, methodologies, and delivery requirements

2. Schedule 2 - Service Levels: Detailed performance metrics, KPIs, measurement methods, and service credits

3. Schedule 3 - Charges: Detailed pricing structure, rate cards, expenses policy, and payment milestones

4. Schedule 4 - Data Processing Agreement: Detailed data protection obligations, processing activities, and security measures

5. Schedule 5 - Change Control Procedure: Detailed process for requesting, assessing, and implementing changes to services

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions




























Clauses
































Industries

Supply of Goods and Services Act 1982: Primary legislation governing service contracts in England and Wales. Implies terms about reasonable care, skill, and timeliness in service delivery.

Consumer Rights Act 2015: Regulates B2C contracts, setting service quality standards, consumer protection provisions, and rules regarding unfair contract terms.

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract to which they are not a direct party.

Late Payment of Commercial Debts (Interest) Act 1998: Establishes rules for payment terms and statutory interest on late commercial payments.

UK GDPR and Data Protection Act 2018: Sets requirements for processing personal data, including privacy obligations and data protection measures.

Employment Rights Act 1996: Relevant for IR35 considerations and worker classification in service contracts.

Companies Act 2006: Governs corporate capacity and authority to enter into contracts.

Bribery Act 2010: Sets anti-corruption provisions that must be considered in commercial agreements.

Modern Slavery Act 2015: Establishes supply chain obligations and transparency requirements regarding modern slavery and human trafficking.

Equality Act 2010: Ensures non-discrimination provisions are properly addressed in service agreements.

Competition Act 1998: Regulates anti-competitive practices and must be considered when drafting commercial agreements.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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