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If you’re engaging someone for services or you’re the one providing services, you may have heard of the concept of “service levels”.
In a service business, a client might expect minimum levels of service from the provider – expectations that are commonly referred to as “service levels”, especially in industries such as marketing, technology and creative services.
To ensure the service provider is committed to these standards, the agreed service levels are typically recorded in writing as part of a Service Level Agreement.
But what exactly is a Service Level Agreement, anyway?
What Is A Service Level Agreement?
A Service Level Agreement (often abbreviated as “SLA”) is a formal document that sets out the minimum required levels of service that a client can expect from their service provider. In today’s competitive 2025 market, SLAs are more important than ever in managing expectations and ensuring accountability.
Perhaps the easiest way to explain this is through an example.
Imagine that you run a creative agency, and as part of your services, you design and build websites for your clients. Typically, you would have a general Service Agreement that outlines your roles, responsibilities, payment terms and other standard clauses.
However, for more sophisticated projects or high-profile clients, a Service Level Agreement becomes a more detailed document that specifies the precise service levels required. This might include, for instance, guaranteed response times for addressing website bugs or technical issues.
Such specifics ensure that, from the outset, both you and your client clearly understand how and when service issues will be resolved. Moreover, many SLAs also outline consequences for non-compliance – often in the form of service credits, partial refunds or other remedial measures.
How Do I Use A Service Level Agreement?
A Service Level Agreement is typically integrated with your general Service Agreement. In many cases, it is set out as a schedule appended to the main agreement, listing the agreed service levels in detail.
This format allows you to maintain the standard structure of your Service Agreement, with a dedicated section at the end that focuses solely on service level requirements.
For more complex projects, you might opt for a standalone Service Level Agreement separate from your primary contract – either approach is perfectly acceptable in 2025. It’s also increasingly common for SLAs to work in tandem with other contracts prevalent in the IT and creative industries, such as Managed Services Agreements and Master Services Agreements. For further insight on drafting robust contracts, you may also wish to explore our updated guide on What Makes a Contract Legally Binding and our comprehensive Introduction to Contracts.
What Can I Find In A Service Level Agreement?
The content of a Service Level Agreement can vary significantly from one contract to another, based primarily on project scope and client expectations. Nonetheless, several common clauses tend to appear in most SLAs:
- Required response times for addressing issues raised by the client;
- Specified up-times or availability targets for services – particularly relevant for hosted websites and IT solutions; and
- Consequences or remedial actions if the service provider fails to meet the agreed standards, such as service credits or refunds.
Need Help With A Service Level Agreement?
Whether you require a Service Agreement complete with an SLA schedule or prefer a separate Service Level Agreement document, we are here to help you navigate these complex contractual waters.
As a matter of best practice, it’s advisable to consult with an experienced lawyer who understands your industry’s challenges and can tailor the contract to your specific needs. Our team is well-versed in drafting agreements that reflect the latest legal standards and market expectations in 2025.
Our legal team at Sprintlaw is quite familiar with these kinds of contracts so don’t hesitate to reach out at [email protected].
It’s also wise to periodically review and update your SLAs to ensure they remain aligned with evolving industry standards and regulatory requirements. In today’s rapidly changing environment, maintaining up-to-date contracts not only protects your business but also enhances your reputation for reliability. For additional guidance on updating your agreements, feel free to consult our resources such as our comprehensive guide to contracts and learn more about our bespoke contract review services.
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