Service Agreement, Managed IT Support

Service agreement

A managed IT support agreement with the parts that get argued about later written down properly: response times, what is excluded, and how to leave.

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The whole document

Every page as it was built, in order. All the wording, figures and tables were written for this example, so the structure can be judged on real content.

This agreement is made between Ardent Systems Pty Ltd, ABN 55 210 883 004, of 210 Rundle Street, Adelaide, referred to as the Provider, and Loxton Legal Pty Ltd, ABN 71 002 918 447, of 5 Gawler Place, Adelaide, referred to as the Client.

The Provider will supply managed support for the Client's 34 workstations, 4 servers, network equipment and Microsoft 365 tenancy, including monitoring, patching, backup verification and a service desk.
The service desk operates 7am to 7pm on business days. Outside those hours an on-call engineer responds to critical faults only, defined in clause 2.
Hardware replacement, third party software licences, work at the Client's other offices, and any project work quoted separately. Time spent on excluded work is billed at $165 an hour.
Response time is measured from the ticket being logged to a named engineer contacting the Client. Performance is reported monthly and reviewed each quarter.
If the Provider misses the P1 response target more than twice in a month, the Client receives a credit of 10 percent of that month's fee, applied to the next invoice.
The fee is $4,180 a month plus GST, covering the devices and users listed in Schedule 1. Invoices issue on the first business day of the month, payable within 14 days.
Devices added during a month are charged pro rata at $86 per workstation and $340 per server. Removals take effect at the start of the next month.
The fee is reviewed once a year and may rise by no more than CPI plus two percent, with 60 days written notice.
The Client keeps its software licences current, gives the Provider administrative access to the systems in scope, and names one contact authorised to approve work outside this agreement.
The Provider keeps a current register of the Client's systems, verifies backups weekly, and reports any security incident to the Client within four hours of detection.
Each party keeps the other's confidential information private, uses it only to perform this agreement, and returns or destroys it within 30 days of termination.
Client data remains the property of the Client. The Provider does not access it except as needed to deliver the services, and never moves it outside Australia without written consent.
This agreement runs for 12 months from the commencement date and then continues month to month unless either party ends it.
Either party may end this agreement with 60 days written notice. The Provider will assist with transition for up to 20 hours at no charge.
A party in material breach has 14 days to remedy it after written notice. If it is not remedied, the other party may end the agreement immediately.
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What makes this document work

Service levels are a table

Four priorities with response and resolution targets, so both sides can measure the same thing.

Exclusions carry a rate

Work outside scope is not refused, it is priced, which keeps the relationship working.

Leaving is written down

Sixty days notice and twenty hours of transition help, agreed while everyone is still friendly.

Questions people ask

What should a service agreement cover?

What is included and excluded, service levels, fees, both sides obligations, confidentiality, and how the agreement ends.

Do I need service credits?

They give the levels teeth. This example credits 10 percent of the monthly fee when the critical response target is missed twice.

How long should the term be?

Twelve months rolling monthly is common. Long lock-ins mostly protect the supplier.

Is this legal advice?

No. This is an example of structure and wording. Have your own agreement reviewed before you rely on it.

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