Master Services Agreement Template

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With the advancement in the IT industry, the chances to earn money and get jobs have also increased impressively. People usually prefer working at their place through some online medium, but there are numerous chances of fraud in this field. Some people get the task done by IT specialists and leave them unpaid or pay less against a big task.

To reduce such cases, it is wise to sign a legal document that will help the IT vendors to earn money legally. This agreement is known as the master services agreement. In this article, the reader will learn more about it.

What is a Master Services Agreement?

Before starting a new job or a contract, it is considered good practice to start it with a legal document. This would help to specify requirements and secure the rights of the IT specialist. This agreement is signed between the company that wants to get the software developed and the company/person who will make the software system.

A master service agreement not only initiates a new contract but acts as a base for other following agreements that are used in software development. The purpose of this contract is to ensure the terms and conditions of the agreement, responsibilities, and roles of stakeholders. This contract clears the services provided by the IT vendor and some other important understandings between the parties.

This agreement is a lengthy document and takes a long time to draft. Once this contract is designed by adding all the essential elements in it, it can be used as a master agreement template for other ventures too.

The Typical Format of a Master Services Agreement

There are specific clauses that are compulsory to include in a master service inc contract. Without adding these obligations to the agreement, the purpose of this contract would not be fulfilled. The typical format of this agreement is elaborated as follows:

  1. Introduction Section: This section of the master service agreement form includes the names of the members of the contract, their contact information, and the registered address of the company.
  2. Confidentiality: Under this clause, both parties decide whether the data involved within the agreement will be shared with a third party or not. This section also clarifies the advertising rights of the data.
  3. Compensation Clause: The indemnification section decides the necessary steps to be taken in case any property is harmed, or there is a major breach of data. This clause specifies whether any of the stakeholders will be considered accountable for the damage caused to the intellectual property or not.
  4. Payment Method: Next come the schedule and mode of payment. The client makes the payment as soon as a task is completed. The other way of payment is to pay the IT vendor after the entire job is done.
  5. Termination Clause: The terms and conditions for terminating the agreement are mentioned under this clause. This section also states the ending date of the agreement.

Tips for Writing a Master Services Agreement

A master service agreement form is a pact that covers all business-related contracts in a business environment. There are several things that need focus and concentration when writing or drafting this form. Following are some of the tips that are needed to be known when creating this form:

  • Use an Authentic Tool for Drafting: To create an effective master professional services agreement, there is a need to choose the right tool to fulfill the job. For this purpose, there is an online tool available for free named CocoDoc. By using this platform, one can make and draft these agreements in no time.
  • Terms and Conditions Should be Drafted Properly: The service-providing company must specify all the terms and conditions in this agreement in clearly written points. This will help the stakeholders to understand all the clauses of the contract, and there wouldn't be any chance of misunderstanding among the contract holders.
  • Add the Interested Individuals in the Drafting Process: The names of all the people involved in the mutual service agreement must be written in separate fields in this agreement. This step ensures that the viewpoint of each member is considered and noted in the contract.

Common Mistakes to Avoid When Drafting a Master Services Agreement

Business contracts are a part of success and flourishment for any company. These agreements are considered complex documents and need expertise with complete knowledge to develop such agreements. Draftsmen usually make some mistakes that cause big troubles for the company later. Some of the errors in a master service agreement are as follows:

  • Not Writing Every Detail in the Contract: In a business environment, sometimes people tend to take certain decisions or finalize a contract through verbal communication only. By doing this, they do not have any proof of what was said during the contract. In the case of a dispute, there is nothing in hand to use as evidence against the culprit. That is why there is a need to write every minor to major detail on a signed contract.
  • Failed to Include Solutions to Resolve Disputes: Companies forget to do risk management when creating a contract and hence encounter unimagined disputes. No one can predict the future and find the reasons for future disagreements between the two parties. But it is considered wise to plan carefully before drafting the contract.
  • Unsuccessful in Updating the Contract: When a contract between two parties is under development, there is a chance of changing in the circumstances. Draftsmen usually do not update the agreement, and hence the company faces difficulties in the end.


A master services agreement is an essential goal that is to be achieved in the software development industry. This contract plays a vital role in figuring out the confusion between the client and IT vendor. It helps in cutting down the cost and saves time consumed in developing the terms of the contract that are already decided in previous contracts.

In CocoDoc, a master services agreement template is available that can be used to create this agreement within a few minutes. This tool makes sure that the user does not feel any difficulty in drafting the contract. Besides, you might be interested in other agreement templates at CocoDoc.

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