Master Services AgreementA Master Services Agreement covers the terms to be applied for a range of work commissioned as part of an ongoing relationship between a supplier and a customer.
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.