A Master Services Agreement (MSA) is a contractual document that outlines the terms and conditions governing future transactions or agreements between two parties. The intention of such an agreement is to expedite and simplify future transactions or service engagements, avoiding the need for lengthy negotiations every time.

An MSA outlines the general legal terms such as dispute resolution process, payment terms, intellectual property rights, confidentiality, and liability issues among others. It provides a comprehensive, standardised framework for future business interactions, while leaving enough flexibility for the specifics of each individual project or transaction (like precise scope of work, delivery timelines, etc.) to be separately outlined, typically separate agreements often known as Statements of Work, that will be subject to the provisions of the MSA.

Creating an MSA can be beneficial to parties that anticipate an ongoing business relationship. It can save time, simplify business operations and service delivery, and reduce uncertainties resulting from legal complexities. For businesses in industries like technology, consulting, and professional services, an MSA serves as a framework that streamlines their workflow and strengthens their client relationships.

Why do I need a Master Services Agreement?

Why can’t I just have a different contract each time I provide a service, you ask. 

Well, the short answer is you can. However, the benefits of having a Master Service agreement for ongoing work outweigh writing up a new contract each time.

Still not convinced? Here are the benefits

• The term ‘master’ intends to be a standard agreement, covering all different kinds of services you provide to your clients
• The Agreement is broad so that you can cover adhoc and unique services
• A Master Services Agreement is efficient and will save you the hassle of drafting a new contract if you have an ongoing business development with an existing client
• If you provide a range of services, it will be a good idea to standardise your terms and conditions for use
• You can simplify future agreements and future contracts
• It will secure revenue streams
• It will protect your liability
• It helps prevent disputes arising throughout the term of the entire Agreement as an early form of dispute resolution
• It will simplify the contract negotiation process with your client