Many professional service companies use master service agreements with their clients. A master service agreement contains important agreements that have been negotiated with the client. Being clear about the goals of your master service agreements could prevent problems later in your business relationship.
What Can a Master Service Agreement Do for Me?
Getting your agreements in writing provides a number of benefits for both parties:
- Manages Risks. All MSAs contain concrete details, in writing, of the parties’ agreements. Limitations of liability are common in MSAs, which could reduce the risk of litigation. There’s less possibility that a project will become snarled in disagreements if the MSA is clearly written.
- Details Legal Terms and Conditions. Issues like confidentiality and non-competes can be covered, as well as any other potential legal problems. Since disputes can arise in any business relationship, an MSA usually includes language stating how disagreements will be handled. Intellectual property and the treatment of confidential company information should also be part of an MSA.
- Can Cover Multiple Projects. The MSA between a client and MSP applies to all future projects. Not the actual scope of the work being done, but the general details of the relationship between the MSA and MSP are covered.
- Simplifies Future Contract Negotiations. When all the heavy lifting has been done and memorialized, all that’s left is the details for the current project. The contract process and negotiation time for future projects will be shorter because you won’t have to hash through issues that apply to your basic relationship.
- Managing Expectations. An MSA can include work standards that, again, apply to all future projects. Delivery requirements are often included. Knowing where you stand helps with laying out future work.
Have Your Master Service Agreement Reviewed.
Your Master Service Agreement should work for you. The primary goal of the MSA is to define and shape the relationship in broad strokes.
Do your master service agreements or other contracts need the attention of an experienced business attorney? Contact Virtus Law at 612.888.1000 or send us an email at firstname.lastname@example.org. Our main office is located in Minneapolis, with other offices located in Maplewood, Cambridge, Edina, Mendota Heights, and Red Wing.