When your small business needs to procure services from another business, independent contractor, or professional, a scope of services agreement helps define what services you expect to receive. Also called a scope of work, this document details when the services are required. It also defines the services or tasks and the conditions for payment and dispute settlements. A scope of services agreement is the foundation of a services contract. Writing a scope of services agreement lets you give clear directions to the service provider before the work begins.
A scope of services agreement is part of a contract between your business and the service provider. It should contain the name of the business that initiates the contract, along with the name of the provider who is performing the work. Include your business name and that of the service provider, along with both business addresses. Payment terms and amounts are often part of your contract document, but it also is common to include conditions that affect payments in service agreements. In this section of the agreement, you can include a statement that the contractor is not an employee of your business and has no known conflict of interest.
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