Service Credits Agreement

Assembling ALS can be a difficult process – because it`s often about documenting processes that have been created organically within an organization. However, if you keep your business goals in mind and follow the advice of this article, every ALS you create should improve your business relationship with your service provider and help you get the service you expect. Service and service level credit systems should encourage delivery under the contract. If the service and credit system of services is not in line with the objectives of the treaty, the mechanisms risk becoming an administrative task, which can be carried out monthly with relatively small amounts of money. Under these conditions, service levels and service credits simply become contractual fees with no real benefit to either party. Service elements include the specifics of the services provided (and what is excluded if in doubt), the conditions of availability of services, standards as well as slots for each level. B service (e.g., prime time and non-prime time) may have different levels of service, responsibilities of each party, escalating procedures and compromise costs/services. Management elements should include definitions of standards and methods of measurement, reporting processes, content and frequency, a dispute resolution procedure, a compensation clause to protect the client from third-party disputes arising from breaches of service (which should already be included in the contract) and a mechanism to update the agreement if necessary. While service levels, service credits and termination rights are the most important provisions of a service level contract, an ALS may include other issues depending on the structure of the overall agreement, for example.B. the following: In practice, monitoring levels of service may be the most comprehensive record of the service contract in the event of a service dispute. The client can prove that there have been violations and that failure to comply with service levels is a symptom of major defects.