ABSTRACT

We don’t really need to spell out how contracts work, other than to point out that a service-level agreement (SLA) is in reality the memorandum of understanding between the customer and the service provider. It isn’t a mutual suicide pact, where one party or the other is going to extend themselves into destructive measures just to be honorable in fulfilling the agreement to the letter. Reason has to prevail, and sometimes one party or the other may need to violate the agreement in order to stay in business. Although it may be VERY tempting to simply sign the paperwork, it really is in your best interest to first take it back to your office and sit in a quiet corner with a highlighter. Look at the SLA in terms of before, during, and after to determine what happens if some sort of significant event occurs. You also need to be realistic about looking for your legal recourse in the document as to what your exposure will be if, for some unknown reason, you find yourself needing to walk away. We like to use the old who, what, where, when, and how as a litmus test for contracts in general, and SLAs specifically.