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Managed Services Agreement Review: Components, Tips, Legal Help

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Quick Facts — Managed Services Agreement Lawyers

What is a Managed Services Agreement Review?

A managed services agreement is a legal document that’s signed between a service provider and customer for the provision of IT services. It includes information regarding how the provider will support, monitor, and amend services, while also outlining details about payments and risks.

Since this is a legal contract, you want to ensure it’s drafted professionally. A review of your managed services agreement is essential.

In the rest of this article, explore what’s included in a managed service agreement, how to review it, and when you should get it legally reviewed by a professional, experienced lawyer.

What are the Components of a Managed Services Agreement?

A managed services agreement needs to contain some key terms, such as the following:

  • Services. A clear outline of all the IT services that will be provided needs to be included for clarity. Examples of services include support, data backups, and network monitoring.
  • Service Level Agreements (SLAs). It’s common for a managed services agreement to contain SLAs, since these include guidelines and standards for the working relationship.
  • Roles. The provider’s and client’s duties must be specified so that there is no confusion or uncertainty. The client wants to know exactly what the provider will do.
  • Payment terms. How and when the client will be billed, and what they will have to pay, should be clear and detailed so that disputes can be minimized.
  • Termination. How the contract can be ended by either party will prevent people from being locked into an agreement that no longer matches their requirements.
  • Confidentiality. The client wants to know that their information will be handled and stored securely. The agreement should confirm compliance with all regulations.
  • Liability and indemnification. Who is responsible for things that could go wrong, such as system failures, needs to be specified to minimize risk and ensure accountability.
  • Change management clause. This is an essential section in the agreement that explains how changes to the service can be made smoothly and easily.
  • Dispute resolution. To prevent issues from going to court, the agreement should specify what process will be chosen for disputes, such as mediation or arbitration. There should also be information about what laws govern the contract.

How Can You Review a Managed Services Agreement?

When the managed services agreement has been drafted and sent to you, you should take some time to read through it and review it carefully. Check that you’re happy with all the terms and flag anything you want to discuss with the other party. Here are some tips to help you review the document.

Check for Escalation Information

If there’s a service issue, the client wants to know that they can contact someone to escalate and handle their concern, especially if it’s an urgent situation. Note if the agreement mentions the steps to take in such a situation.

Have a Clear Scope of Services

The scope of services in the agreement should be specific and clear for both parties so there aren’t any misunderstandings about what should or shouldn’t be included.

Confirm the SLA

If the agreement doesn’t contain a Service Level Agreement (SLA), this can cause it to lack proper guidelines for performance and response times.

Flag Vague Wording

Any vague, broad, or unclear clauses should be noted and revised because they can be interpreted differently by parties, causing issues or disputes.

Ask About Hidden Costs

All payments and costs must be laid out in the managed services agreement to prevent disputes and payment delays. If there are hidden costs, these also need to be discussed for transparency in the working relationship.

Don’t Ignore the Change Management

Without proper change management processes, the agreement can cause future issues. These types of contracts should be able to grow and expand depending on the parties’ requirements, or they could prevent high-quality services from being delivered.

Do You Need a Lawyer for a Managed Services Agreement Review?

Since this agreement is a foundation for how the provider and client will work together, down to the services that will be provided, it needs to be clear, legally sound, and easy to understand. A lawyer can help you to review it so that you don’t miss anything important. They’ll:

  • Check that all data security and compliance regulations are met to prevent legal issues.
  • Explain any complex or confusing clauses filled with legal jargon so you understand everything in the document. This also serves to reveal any hidden risks.
  • Ensure that all provisions, such as in terms of protecting data and resolving disputes, are clearly defined so that your interests are prioritized.
  • Negotiate with the other party on your behalf if terms should be improved.
  • Prevent costly disputes that can land you in court and service disruptions that can affect your business operations.
  • Revise the agreement so that it’s legally accurate and transparent.

Where Can You Find a Lawyer to Review Your Managed Services Agreement?

If you need a professional lawyer to provide a thorough review of your managed services agreement, you can find one on an online legal marketplace like ContractsCounsel, which makes finding a lawyer much easier than it used to be.

ContractsCounsel is one of the largest online legal marketplaces where clients can quickly connect with vetted lawyers who have years of experience in conducting contract reviews. They can also draft contracts for you.

Ready to get a review of your managed services agreement? Follow these simple steps.

1. Post your project on the ContractsCounsel marketplace. It’s free!

2. Include a bit of information about what you require so lawyers know how to help you quickly.

3. Wait to receive lawyer bids. You’ll receive multiple bids from lawyers on the platform who want to assist you.

4. Review the lawyers' profiles based on criteria such as their location, experience, expertise, and client ratings.

5. Choose the best lawyer for your purposes, and get peace of mind that your contract is professional, fair, and legal before you sign it.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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