A Service Level Agreement (SLA) is a vital document that meticulously outlines the specifics of a deliverable or project from its very beginning to its completion.

Service Level Agreements serve as significant repositories of data and information, including the tracking of achieved goals and unmet conditions. An SLA is an indispensable component when crucial projects and final-stage deliverables are entrusted to an external vendor.

While drafting an SLA is often standard practice rather than an exception, creating a Service Level Agreement establishes clear rules that dictate how work will be measured and performance will be monitored and evaluated. Furthermore, the SLA will ultimately determine the quality of the services provided by the vendor.

Why do I need one?

Creating a Service Level Agreement is highly recommended because it minimizes ambiguity and manages expectations effectively. An SLA brings together all parties involved in an agreement, clearly outlining the details concerning the work to be done, the resources required, and the agreed-upon deadlines. Typically, an SLA will document in writing the expectations and responsibilities of each party. Consequently, the party commissioning the work gains a clear understanding of the deliverables they will receive, while the vendor or the party executing the project provides the customer with an accurate assessment of their capabilities.

In this way, the expectations regarding the services and work to be received become legally binding and are no longer subject to individual interpretation. As a result, one party cannot arbitrarily claim that the other is not performing adequately or that the work is not progressing according to the agreed schedule. In the context of high-value contracts involving substantial financial transactions, an SLA can effectively prevent miscommunication and misunderstandings. Therefore, a Service Level Agreement safeguards the interests of all parties involved in the agreement.