An SLA establishes measurable service performance standards between provider and customer. This playbook explains methods to draft enforceable metrics, remedies for non-performance, and escalation procedures.
Why This Matters: Misaligned performance standards can lead to service interruptions and financial losses. Clear SLAs ensure accountability and protect business continuity.
Negotiation strategy
If you're the Company:
Ensure that the SLAs are aligned with your business needs. Negotiate for realistic uptime and response times, and ensure that penalty structures incentivize performance.
If you're the Contractor:
Propose achievable service levels that reflect your operational capabilities. Be transparent about maintenance schedules and ensure that reporting obligations are clear.
Essential elements
1
Service Level Objectives
Defines uptime and availability.
2
Response Time
Specifies incident response times.
3
Performance Reporting
Outlines reporting obligations.
Action framework
ACCEPT
Propose edits if service levels are misaligned with business needs.
EDIT
Reject clauses that impose unrealistic penalties or unattainable metrics.
ADD
Add clauses for additional penalties in high-risk scenarios.
PRO TIP
Always ensure that SLAs are realistic and reflect both parties' capabilities and expectations.
Example clauses
FAVORABLE
Preferred Service Level Objectives
"The Service Provider shall ensure that the Services are available 99.9% of the time, measured on a monthly basis, excluding scheduled maintenance. The Service Provider shall provide at least 48 hours' notice prior to any scheduled maintenance."
NEUTRAL
Standard Response Time
"The Service Provider shall respond to any service request or incident within 2 hours of receipt. Resolution of critical issues shall be completed within 24 hours, and non-critical issues within 72 hours."
UNFAVORABLE
Inadequate Remedies for Non-Compliance
"The Client shall not be entitled to any service credits for failures to meet the agreed Service Levels."
Fallbacks
High-Risk Services
If the service involves critical infrastructure or high-risk operations, review the service levels with heightened scrutiny. Consider additional penalties or stricter performance metrics.
Seasonal Demand Fluctuations
During peak seasons, ensure that service levels account for increased demand and potential strain on resources.
New Technology Integration
When integrating new technology, allow for flexible service levels to accommodate potential learning curves and adjustments.
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WEEK 1
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WEEK 2
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WEEK 3
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Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
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