service level agreement contract for procurement by derek hendrikz
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Copyright © 2014
Derek Hendrikz Consulting
www.derekhendrikz.com
Important Aspects of a good Service Level Agreement (SLA)
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terms of
appointment
(duration,
review, etc.)
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remuneration
and fees
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termination,
cancellation and
breach
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confidentiality
and intellectual
property
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indemnity and
liability
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Communicating Performance Criteria
• Obligations of both parties should be clearly set out in the
Service Level Agreement (SLA);
• Outcomes (that which must be achieved) must be clearly stated
and defined;
• All supplier performance must be project based, preferably a
project plan from the supplier must be demanded;
• The SLA must make provision for feedback intervals; and
• Payments to the provider must be subdivided into payments for
outcomes achieved. www.derekhendrikz.com
Working with non-performance in the SLA
• Insert a penalty cost for non-correct delivery.
• Develop coordination instruments and
monitoring processes.
• Develop and define quantitative analysis
instruments.
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