Is a professional services agreement a contract?
Yes a PSA agreement is a legally binding contract to protect the consultant and business. A PSA normally includes a list of the consultant's services, the business's compensation, and the duration of the contract. Try Bonsai's free template to kickstart a professional relationship with a client or business.
What is the difference between a contract and a service agreement?
In general, a contract has a more structured format than an agreement. Any understanding between two parties over what they promise to perform for one another qualifies as an agreement.
What is a PSA in legal terms?
A PSA is the legal document that lays out the rights and obligations of specific parties over an agreed working relationship.
As a freelancer, you will know that there are several ways that a contract can go wrong. One of the biggest mistakes you can make is not to have a service agreement in place. If your question is, what is a service agreement? Then, you need to step up your game seriously. But we will help you out. What is a service agreement, and why do you need a professional services agreement template?
A service agreement is a written document that specifies the services that you will be offering and the payment that your client will make for those services. There are several types of services that you can provide to your customers, from fixed-price freelancing to contract-based jobs. All these services have their peculiarities, making it essential for you to have a professional services agreement template.
This template makes it easy for you to create an agreement that suits your needs and your customers. You might be skeptical about why you need a service agreement at all in the first place. While this agreement might not always hold water in the law court, there is a lot to gain from having a professional service agreement. We will examine some of what you stand to benefit.
Why Do You Need A Professional Services Agreement Template?
A template makes it easier for you to have a professional services agreement in place as quickly as possible anytime you need one. The importance of a professional services agreement template is directly linked to the essence of having a professional service agreement. It might be easier to agree with your client verbally on what you will be doing. However, it is not the best course of action.
Here are some of the reasons why you need a professional services agreement;
- You will save time and money.
Creating a services agreement will save time spent haggling over what you will offer and what your client will pay. It also means that you will save yourself the hassle of wasting time when there is a misunderstanding. All you have to do is refer your customer back to the specified terms in the agreement. The professional services agreement template makes it even more time saved as you won’t have to create a new template from scratch every time you need one.
Since a service agreement template clearly states your fees for services rendered, it saves you from unpaid jobs and late payments. Your client is more likely to pay, knowing that there is an agreement that he has signed to this effect. You can enjoy carrying out your services when you know that your payment is secure at the end of the job.
- You prevent misunderstandings
Many good customer relationships can end over unmet expectations. However, with a professional services agreement, you can avoid these misunderstandings. The agreement ensures that it is clear to both you and your client what is expected. Therefore, you and your customer know what services you should offer and what your client should pay. Since it is all written down, you can refer to the document to know who is right and how you can resolve it.
- You reduce litigation risk.
Lawsuits can be expensive. One lawsuit can cripple your freelancing business and mean the end of any contract for you. However, with a service agreement in place, you can reduce the possibility of getting any lawsuits. A professional services agreement template will include all the industry standards that will protect you and your client. You will also have fewer misunderstandings between you and your client if you have a signed agreement in place.
A professional services agreement template makes it possible for you to save time and money. With a good template like Bonsai’s, you will have little to no misunderstandings with your client.