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Service Level Agreement (SLA) Template

Free SLA template for defining service quality standards. Covers uptime guarantees, response times, performance metrics, penalties, and escalation procedures.

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Service Level Agreement (SLA)


1. Service Description

This Service Level Agreement ("SLA") is entered into on [Date] between [Service Provider] ("Provider") and [Client Name] ("Client") as an attachment to the Master Service Agreement dated [Date]. The Provider shall deliver the following services: [Detailed service description]. This SLA defines the performance standards, metrics, and remedies applicable to the Services.

2. Uptime and Availability

The Provider guarantees a minimum uptime of [99.9%] per calendar month, measured as: Uptime % = ((Total Minutes - Downtime Minutes) / Total Minutes) x 100. Scheduled maintenance windows (not counted as downtime): [Day/Time, e.g., Sundays 2-6 AM UTC]. The Provider shall give [48] hours' notice for planned maintenance. Emergency maintenance may be performed with reasonable notice.

3. Response and Resolution Times

The Provider shall respond to and resolve issues based on severity: Critical (service down): Response within [15] minutes, Resolution within [4] hours; High (major feature impaired): Response within [1] hour, Resolution within [8] hours; Medium (minor feature impaired): Response within [4] hours, Resolution within [24] hours; Low (cosmetic/inquiry): Response within [1] business day, Resolution within [5] business days. Response time is measured from the time the issue is reported through the designated support channel.

4. Performance Metrics and Reporting

The Provider shall track and report the following KPIs monthly: (a) uptime percentage; (b) average response time by severity; (c) average resolution time by severity; (d) number of incidents by severity; (e) customer satisfaction score. Reports shall be delivered within [5] business days of month-end. The Client may request real-time access to a monitoring dashboard.

5. Service Credits and Penalties

If the Provider fails to meet the uptime guarantee, the Client shall receive service credits: 99.0% - 99.9% uptime: [10%] credit on monthly fee; 95.0% - 99.0% uptime: [25%] credit; Below 95.0% uptime: [50%] credit. Service credits shall be applied to the next invoice and shall not exceed [100%] of the monthly fee. Persistent failure (3 consecutive months below SLA) gives the Client the right to terminate without penalty.

6. Escalation Procedures

Issues shall be escalated as follows: Level 1 (Technical Support): initial triage and resolution attempt; Level 2 (Engineering Team): escalated if not resolved within response SLA; Level 3 (Management): escalated if not resolved within 2x the resolution SLA; Executive Escalation: Client may contact [Name/Title] at [contact] for unresolved critical issues. Both Parties shall designate escalation contacts and keep them updated.

Signature — Party A

Signature — Party B

Tips for Using This Template

  • Define how uptime is measured precisely (end-user perspective vs. server monitoring) to avoid disputes.
  • Ensure service credits are meaningful enough to incentivize performance but not so high as to be punitive.
  • Include carve-outs for downtime caused by the client (misconfiguration, exceeding capacity) or force majeure.
  • Review and update the SLA annually as business needs and technology evolve.

Frequently Asked Questions

What is a reasonable uptime guarantee?
Industry standard for most SaaS and cloud services is 99.9% (8.76 hours downtime per year). Critical infrastructure may warrant 99.99% (52.6 minutes per year). Balance the desired uptime against cost - higher guarantees require redundant infrastructure.
Are service credits the only remedy for SLA violations?
In most SLAs, service credits are the exclusive remedy for SLA breaches. However, this template includes a termination right for persistent failures. Some organizations negotiate additional remedies for severe or prolonged outages.
How do I measure if the SLA is being met?
Use independent monitoring tools (not solely the provider's metrics) to verify uptime and response times. The SLA should specify the measurement methodology, monitoring tools, and reporting format to ensure transparency.

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Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction. Consult a qualified legal professional before using this document for any binding agreement. ContractClaw Sign is not a law firm and does not provide legal services.

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