Service Agreement Template (Free Word Download)

A service agreement says what work you'll do for a client, what it costs, how long the arrangement runs, and what happens when the work changes or one of you wants out. The free template below covers all of it in 21 sections plus a statement of work. It fits a one-off project or ongoing monthly work, and you can read it in full on this page or download it as a Word file with no signup.

It's written for any business that sells services to other businesses, such as agencies, studios, IT and support providers, bookkeepers and freelancers. Where the two sides' interests differ, like who owns the finished work, you pick between two options.

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Service agreement checklist: 10 things to include

The parties. Each side's legal business name, address and a named contact person.
The services, and what's not included. Describe the work and put the details in a statement of work you can update. Add a line listing what is out of scope, since that's the line you'll point to later.
Client responsibilities. The input, access and approvals you need from the client, and that your deadlines move if those arrive late.
Changes and extra work. How a change is requested, priced and approved before anyone starts on it.
Term. A project that ends when the work is done, or an ongoing arrangement that runs until someone gives notice.
Fees and payment. Fixed fee, hourly or monthly. Then the deposit, invoice schedule, payment due date and what happens when an invoice is overdue.
Independent relationship. That you run your own business and aren't the client's employee. If you're unsure where that line sits in your situation, ask a lawyer or accountant.
Who owns the work. Whether the client owns the deliverables once paid, or gets a license while you keep ownership, and what tools and know-how you keep either way.
Confidentiality and liability. What stays private and for how long, how defects get reported and fixed, and a cap on what either side can be liable for.
Ending the agreement. Notice periods, ending for breach, payment for work done, and handing over files and account access.

Download the service agreement template

The template below is the complete agreement. Copy the text or download it as a Word file. Fill in the fields in brackets, and where a section offers Option A, B or C, keep one and delete the rest.

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Service Agreement

1. Parties

1.1 This Service Agreement (the “Agreement”) is made on [date] (the “Effective Date”) between [Client legal name], [business address], [email] (the “Client”), and [Provider legal name], [business address], [email] (the “Provider”).

1.2 Contact person for the Client: [name, email]. Contact person for the Provider: [name, email].

2. The services

2.1 The Provider will provide [short description of the services, for example website maintenance and monthly content updates] (the “Services”).

2.2 The deliverables, milestones and timeline are set out in Schedule A (Statement of Work). If this Agreement and Schedule A conflict, this Agreement controls.

2.3 The Services do not include [list what is out of scope, for example copywriting, stock photo licenses, ad spend, hosting fees]. Work outside the Services is handled under section 4.

2.4 The Provider will perform the Services professionally and with the care and skill expected of a provider of similar services.

3. Client responsibilities

3.1 The Client will provide the information, materials, approvals and access (including to systems, accounts and premises) that the Provider reasonably needs, by the dates in Schedule A or within [number] business days of a request.

3.2 If the Client is late with anything under 3.1, the Provider’s deadlines move by the same amount of time. The Provider is not responsible for delays caused by the Client.

4. Changes to the services

4.1 Either party may request a change to the Services in writing. Email is enough.

4.2 For each change request, the Provider will reply with the effect on price and timeline. The Provider starts the changed work only after the Client approves that reply in writing.

4.3 Unless the parties agree otherwise, extra work is charged at [amount] per hour [/ per the quote in the approved change].

5. Term

Option A (project): This Agreement starts on the Effective Date and ends when the Services in Schedule A are completed and paid for, unless terminated earlier under section 18.

Option B (ongoing): This Agreement starts on [start date] and continues month to month until either party ends it with [number] days’ written notice under section 18. [The first [number] months are a minimum term.]

6. Fees

Option A (fixed project fee): The Client will pay a fixed fee of [amount] for the Services in Schedule A, invoiced as follows: [percent] on signing as a deposit, [percent] at [milestone], and [percent] on completion. [The deposit is non-refundable once work has started.]

Option B (hourly): The Client will pay [amount] per hour for time spent on the Services, invoiced [monthly / every two weeks] in arrears. [Total fees will not exceed [amount] without the Client’s written approval.]

Option C (monthly fee, for ongoing work): The Client will pay [amount] per month for the Services described in Schedule A, invoiced [in advance / in arrears] on the [day] of each month. [Unused hours or deliverables do not carry over to the next month.]

6.1 For ongoing work, the Provider may adjust its fees once every [12] months with at least [number] days’ written notice.

7. Expenses

The Client will reimburse [pre-approved expenses at cost, with receipts / the expenses listed in Schedule A]. Any single expense over [amount] needs the Client’s approval in advance. [Alternative: all expenses are included in the fees.]

8. Invoicing and payment

8.1 Invoices are due within [number] days of the invoice date. Payment is made by [bank transfer / card / other method].

8.2 [Overdue amounts carry a late fee of [amount or percent per month], to the extent permitted by applicable law.]

8.3 If an invoice is more than [number] days overdue, the Provider may pause the Services after giving [number] days’ written notice, and deadlines move accordingly.

9. Taxes

Fees exclude [sales tax / VAT], which will be added where applicable. Each party is responsible for its own income taxes.

10. Independent relationship

The Provider performs the Services as an independent business and decides how the work is done. Nothing in this Agreement makes the Provider, or anyone working for the Provider, an employee, partner or agent of the Client.

11. Subcontractors

Option A: The Provider may not subcontract any part of the Services without the Client’s prior written approval.

Option B: The Provider may use subcontractors and remains responsible for their work as if it were its own.

12. Intellectual property

Option A (Client owns the work): Once the Client has paid for each deliverable in full, the Provider assigns to the Client all rights in that deliverable. The Provider keeps its pre-existing tools, methods, templates and know-how, and grants the Client a non-exclusive, perpetual license to use them as part of the deliverables.

Option B (Provider keeps ownership): The Provider keeps all rights in the deliverables and grants the Client a [non-exclusive / exclusive], perpetual license to use, copy and modify them for the Client’s own business once paid for in full.

12.1 [The Provider may show the work in its portfolio unless the Client objects in writing.]

13. Confidentiality

13.1 Each party will keep confidential any non-public information it receives from the other party about its business, customers, pricing, plans or technology, and use it only to perform this Agreement.

13.2 This obligation lasts during the Agreement and for [number] years after it ends. It does not apply to information that is already public, was already known to the receiving party, or must be disclosed by law.

14. Non-solicitation (optional)

[During the Agreement and for [number] months after it ends, neither party will actively recruit the other party’s employees or contractors who worked on the Services without the other party’s written consent. This does not apply to people who respond to a general job posting.]

15. Quality and fixing defects

If a deliverable does not match Schedule A, the Client will notify the Provider in writing within [number] days of delivery. The Provider will then fix it within a reasonable time at no extra charge.

16. Limitation of liability

16.1 Each party’s total liability under this Agreement is limited to [amount / the fees paid in the [number] months before the claim].

16.2 Neither party is liable for indirect or consequential losses, such as lost profits or lost data.

16.3 The limits in 16.1 and 16.2 do not apply to [breach of section 13, fraud, gross negligence or willful misconduct].

17. Insurance (optional)

[The Provider will maintain [type of insurance, for example professional liability] coverage of at least [amount] during the Agreement.]

18. Termination

18.1 Under Option B in section 5, either party may end this Agreement with the notice stated there. Under Option A, either party may end it early with [number] days’ written notice.

18.2 Either party may end this Agreement immediately by written notice if the other party materially breaches it and does not fix the breach within [14] days of written notice, or if the other party becomes insolvent.

18.3 When the Agreement ends, the Client pays for work performed up to the end date, the Provider hands over completed work and the Client’s materials, and each party returns or deletes the other’s confidential information. [The Provider also hands over [source files / working files] and makes sure the Client has full access to accounts the Client owns, such as [hosting, domain, analytics, ad accounts].]

19. General

19.1 This Agreement, including Schedule A, is the entire agreement between the parties about the Services.

19.2 Changes to this Agreement must be in writing and approved by both parties.

19.3 Neither party may assign this Agreement without the other party’s written consent.

19.4 Notices under this Agreement may be sent by email to the contact persons in section 1.

19.5 If any part of this Agreement is found unenforceable, the rest remains in effect.

20. Governing law and disputes

This Agreement is governed by the laws of [state / country]. The parties will first try to resolve any dispute through good-faith negotiation. Disputes not resolved within [30] days will be settled by [the courts of [location] / arbitration in [location]].

21. Signatures

[Signed in two copies, one for each party.] [Alternative: Signed electronically by both parties.]

Client

Legal name: [legal name]

Signature: ____________________

Name: [name]

Title: [title]

Date: [date]

Provider

Legal name: [legal name]

Signature: ____________________

Name: [name]

Title: [title]

Date: [date]

Schedule A: Statement of Work

Deliverables: [what will be delivered, with enough detail to tell when it is done]

Milestones and timeline: [dates or weeks from start]

Client inputs needed and by when: [content, access, approvals]

Review rounds included: [number] per deliverable

How the Client approves a deliverable: [for example written approval by email, or approval is assumed if no feedback within [number] business days]

For ongoing work, what is included each month: [hours or deliverables]

This is a general template and not legal advice. It has not been tailored to your situation. If the agreement involves significant amounts or anything out of the ordinary, have a lawyer review it before you sign.

If you're a consultant selling advice and expertise rather than delivered work, the consulting agreement template fits better.

Decide these before you sign

A few questions come up in almost every service relationship. If the answer isn't in the agreement, you end up negotiating it in the middle of a disagreement, which is the worst time to do it.

Question	Where to answer it
Is this a one-off project or ongoing work?	Section 5. Option A for a project, Option B for month to month with a notice period.
Fixed fee, hourly or monthly?	Section 6. Pick Option A, B or C and fill in the amounts.
Do you take a deposit before starting?	Section 6, Option A. Fill in the percentage due on signing.
What's out of scope?	Section 2.3. List the things clients most often assume are included.
What does extra work cost?	Section 4.3. Fill in your hourly rate for changes.
When is an invoice due, and what if it's late?	Sections 8.1 to 8.3. Days to pay, any late fee, and when you can pause work.
Who owns the finished work?	Section 12. Option A if the client owns it once paid, Option B if you keep it and license it.
What do you hand over at the end?	Section 18.3. Files, and access to accounts the client owns.

The ownership row matters most to clients. If they're paying for a website, a brand or a piece of software and want to change and reuse it freely, it needs to say so in the agreement.

Project work or ongoing work

The same template handles both. The difference is in sections 5 and 6.

A project has a defined result, like a website, a migration or a brand identity. Use Option A in section 5, so the agreement ends when the work is done and paid for. A fixed fee with a deposit and a payment at each milestone (section 6, Option A) keeps cash coming in while you work.
Ongoing work has no end date, like monthly maintenance, bookkeeping or IT support. Use Option B in section 5 and set a notice period that's the same for both sides. A monthly fee (section 6, Option C) with a clear list of what each month includes keeps the scope from drifting.

For ongoing work, put a reminder in your calendar a month before any minimum term ends. That's when either side can renegotiate or give notice, and it's easy to miss.

Scope creep: how the change clause works

Scope creep often starts with "could you also just..." The fix is a change process both sides agreed to before the work began. Section 4 of the template sets one up:

The client asks for the change in writing. An email counts.
You reply with what it does to the price and the timeline.
The client approves your reply in writing.
Only then do you start the extra work.

It feels formal the first time. In practice it's two short emails, and it means nobody is surprised by the next invoice. Section 2.3, the list of what's not included, is what makes the process work. Without it, every request can be argued to be part of the original job.

Getting paid on time

Late payments usually come from vague terms. Section 8 covers three things:

A due date. Fill in a number of days from the invoice date, and put the same number on every invoice.
A late fee, if you charge one. Write the amount or rate into the agreement so it's not a surprise when it appears on an invoice.
The right to pause work. If an invoice is well overdue, you can stop work after giving notice, and your deadlines move accordingly. It's the clause you hope never to use and the one that keeps you from working for free.

For projects, a deposit on signing often helps more than a late fee. It also confirms the client is committed before you block out time for them.

Which agreement do you need?

"Service agreement" covers a lot of ground, and a few related documents get mixed up with it. This one is for a business selling services to another business. It isn't for an extended warranty or a car service plan.

Document	Use it when
Service agreement (this template)	You deliver services to a client, as a project or ongoing, and want the whole relationship in one document.
Consulting agreement	You're an independent consultant selling expertise and advice, often for a set engagement.
Statement of work (SOW)	You need to describe one job in detail: deliverables, milestones, review rounds. In this template it's Schedule A.
Master service agreement (MSA)	You'll do many separate jobs for the same client. The MSA sets the general terms once, and each job gets its own SOW.
Service level agreement (SLA)	You run an ongoing service and promise measurable standards, such as response times or uptime. Usually attached to a service agreement.
Retainer agreement	The client pays a monthly fee to reserve your time, often with rules for unused hours. Section 6, Option C covers a simple version.

If you work with UK clients, you may see the same document called a services agreement or a contract for services. The template uses neutral wording. Write VAT in section 9 and your governing law in section 20.

From template to signed agreement

A Word file works for the first few clients. After that, every new agreement means copying the file, retyping the client's legal name and address, saving a PDF and chasing a signature. In Dovio you set the template up once, with fields for the client's company and contact details and your own. When you send it, those fields fill in from the client's record, the client signs through a link in the email, and you see whether each signer has opened the agreement, started or signed. When the last person signs, the signed copy is emailed to the parties.

The agreement then sits on the company and on the contact who signed it, next to your emails and meetings with that client. You can also add a price table with your own services inside the agreement, so the quote and the agreement can be one document. Dovio is an EU-hosted AI CRM with its own notetaker and built-in e-signing, built for small businesses. The AI writes up recorded client calls and drafts the follow-up email for you to send.

Frequently asked questions

What should a service agreement include?

The parties, a description of the services and what is not included, how changes and extra work are handled, the fees and payment terms, how long the agreement runs, how either side can end it, who owns the finished work, confidentiality, and a cap on liability. The checklist and template on this page cover all of them.

Is a service agreement the same as a service contract?

Yes. The two names are used for the same document, and some people say services agreement or contract for services. What decides things is what the agreement says.

What is the difference between a service agreement and an SLA?

A service agreement covers the whole working relationship: the work, the price, the term and how it ends. A service level agreement (SLA) sets measurable standards for an ongoing service, such as response times or uptime, and is usually attached to a service agreement rather than replacing it.

Can I use one service agreement for ongoing monthly work?

Yes. Choose Option B in section 5 so the agreement runs month to month with a notice period, and Option C in section 6 for a fixed monthly fee. List what each month includes in Schedule A.

How do I handle extra work the client asks for?

Use the change process in section 4. The client asks in writing, you reply with what the change does to price and timeline, and you start only after the client approves that reply. Email is enough for both steps.

How do we sign the service agreement?

Print and sign two copies, or send it for e-signing. The template has a line for either. Make sure every party ends up with a copy of the signed agreement, and keep yours where you can find it when the renewal or notice date comes up.

The short version

A good service agreement answers the awkward questions before they come up. Above all, write down what's out of scope, how extra work gets approved, and when invoices are due. Use the template, pick the options that fit the job, and set a notice period if the work is ongoing. If you'd rather not retype client details for every new agreement, set the template up in Dovio and send it for e-signing from there.