How to Write a Service Agreement

A service agreement sets terms for work such as maintenance, cleaning, technical support or other operational services. It is different from a product protection plan sometimes called a “service contract.” Start by identifying the service, whether it is recurring and whether the customer is a consumer or another business.

That distinction matters because consumer laws may require disclosures, written documents or cancellation rights that cannot be removed by a generic clause. A business-to-business arrangement can raise different risk-allocation questions. Do not describe every customer as a business merely because that avoids a rule.

For project-based creative work, a freelance agreement may be more useful. For advisory work, distinguish recommendations from implementation. The title of the document does not determine the actual relationship.

List the service frequency, locations, tasks and service standard. “Weekly office cleaning” should state the covered areas, tasks, supplies and days or agreed scheduling process. “IT support” should explain which systems are supported and what is excluded. Avoid promising unlimited availability unless that is genuinely included.

Assign customer responsibilities such as site access, safe working conditions, accurate information and an authorized contact. Identify who supplies materials and whether subcontractors may be used. Do not turn access to an office into unlimited permission to access customer data.

Describe how a service issue is reported and assessed. A re-performance process can help resolve a missed task, but it should not imply that all legal remedies disappear. Keep any service-level promises proportionate and measurable.

A fixed price, estimate and time-and-materials arrangement communicate different expectations. Name the pricing method, currency, taxes, approved expenses and invoice due date. For recurring service, specify the billing period and whether a minimum term exists.

Document change approval before extras are performed. A written change order should identify the extra task, price and scheduling effect. “Additional charges may apply” does not tell a customer how much or who may authorize them.

Ontario consumer example

Ontario’s consumer guidance explains that, where a written estimate forms part of a covered contract, the final price generally cannot exceed it by more than 10% unless the customer agrees to the new price and signs a change. That is transaction-specific consumer guidance, not a Canada-wide or B2B rule.

For an unchanged job estimated at CAD $1,000, do not simply send a CAD $1,250 bill and call the difference routine extras. Review coverage and obtain the required change approval when the work changes.

State how either party may end the service, how much notice is proposed and how final charges are calculated. Separate cancellation for convenience from ending the agreement because of a material breach. If a problem can be corrected, define a reasonable notice and correction process where appropriate.

For recurring work, explain renewal dates and any price-change procedure. Do not hide a long renewed term in a vague “service continues” statement. Check local automatic-renewal and consumer rules rather than assuming written consent validates every renewal mechanism.

US consumer example

The FTC’s Cooling-Off Rule describes a three-business-day cancellation period for covered sales made at a home or certain other locations. It is not a general right to cancel every service contract. Coverage and exceptions must be checked before applying it to an online, office or other transaction.

Illustrative arrangement: a business hires an office-cleaning provider for two visits per week. The scope lists rooms, waste removal and cleaning tasks; the customer supplies access codes and identifies restricted areas. The monthly fee states its currency and tax treatment. Deep carpet cleaning is excluded and requires a separate written quotation.

The agreement identifies a contact for missed visits, how rescheduling is agreed and how the arrangement can end. These practical details make the terms more useful than broad promises to deliver “excellent service.” They do not guarantee a particular liability outcome.

• Compare scope and price with the accepted proposal.
• Identify included supplies, subcontractors and expenses.
• Confirm the right person can approve changes.
• Check consumer coverage and mandatory cancellation disclosures.
• Record signatures and deliver the complete agreed copy.

For a service provider’s status and independence, see our contractor agreement guide.

Read the complete agreement, not only the signature page. Compare every amount and date with the proposal or messages you agreed on. Remove placeholders, identify attached schedules, and make sure both parties have the same version. A signature should record agreement to settled terms rather than postpone difficult decisions.

Check whether the document or your jurisdiction requires particular execution, witnessing, notarization, disclosure or filing steps. Electronic signing does not remove those separate requirements. For ordinary documents, retain the agreed PDF and relevant communications in a form you can access later. Do not silently edit a signed version: document subsequent changes in an amendment accepted by the relevant parties.

See our guide to signing a PDF online for the practical signing stage. A signed document is evidence of an arrangement, not a guarantee that every provision is enforceable.