Service Level Agreement (SLA) Template
A structure for defining measurable performance standards with a vendor, and just as importantly, spelling out exactly what happens when those standards aren't met, which is the part most SLAs get dangerously vague about.
SLA Template
Parties and term, services covered, a performance-standards table, remedies for non-performance, reporting cadence, and escalation path.
The section that actually determines whether an SLA does anything
Plenty of SLAs are thorough on performance targets and thin on consequences, "99.9% uptime" is a clear target, but if the document doesn't say what happens when that's missed, the target is really just a stated hope. This template deliberately separates the performance-standards table from the remedies section, and pushes for specificity in both: not "good response times," but "1 hour response for critical issues, measured via ticketing system timestamp."
- Parties, agreement term, and renewal date
- Clear description of exactly which services the SLA covers
- A performance-standards table, metric, target, and measurement method for each
- A dedicated remedies section for missed targets, not a vague penalty clause
- Reporting frequency and review meeting cadence
- An escalation path for unresolved issues
Why this needs a second set of eyes before signing
We're a procurement software company, not a law firm, and we want to be direct about that: this template gives you a solid structure and prompts you to be specific where most SLAs are vague, but it isn't a substitute for legal review, especially around remedies, liability, and termination language, which carry real consequences if worded imprecisely. Use this to get 90% of the way to a strong draft, then have counsel review the final version.
For the broader context of how an SLA fits alongside the rest of a vendor contract, our types of procurement contracts guide covers where performance terms typically sit within different contract structures.
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Common questions about this template
It's a starting structure, not legal advice. Have your legal team or counsel review the final version before it's signed, particularly the remedies and termination language.
Leaving the remedy vague, writing "penalties may apply" instead of naming a specific mechanism, like an exact service credit percentage. A vague remedy is effectively unenforceable.
At each contract renewal. Performance targets that made sense at signing can become outdated as usage patterns or the vendor's service capabilities change.
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