Writing an Administrative Services Agreement

Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice

Introduction

The creation of administrative services agreements is an essential part of any business transaction, providing legal protection to the parties involved and ensuring that expectations are met. These documents outline the terms and conditions of the services being provided, the scope of work and compensation for those services, as well as a dispute resolution process in case differences arise.

Having an enforceable agreement in place helps to provide businesses with peace of mind that their interests are being taken care of, both legally and financially. Not only does this create clarity on what responsibilities each party has but it can also result in cost savings by preventing unnecessary services from being paid for.

At Genie AI we believe that everyone should have access to comprehensive legal protection when entering into a business relationship – no matter whether you’re a multinational corporation or just starting out. That’s why we’ve created the world’s largest open source legal template library with millions of datapoints teaching our AI platform what a market-standard administrative services agreement looks like. With our community template library, anyone can draft and customize high quality legal documents without paying for costly lawyer fees.

If you need help creating your own administrative service agreement then read on below for our step-by-step guidance on how to get started – plus information on how to access our free template library today!

Definitions

Legal Name: The full name of a person or company, as used for official purposes.

Verify: To confirm the accuracy of something by checking it against an authoritative source.

Scope: The range of activities or subject matter covered by an agreement.

Deliverable: An item, usually a product or service, that is due to be completed by an agreed-upon date.

Currency: A form of money that is used in a particular country.

Payment Schedule: A plan for when payments are due and what the payment amounts will be.

Invoicing: The process of issuing an invoice to a customer for payment.

Jurisdiction: The legal power to make and enforce laws or to decide legal disputes.

Mediation: A process in which a neutral third party helps two or more parties to reach an agreement.

Arbitration: A process of settling a dispute by referring it to a person or group chosen by the parties involved.

Liability: The legal responsibility for the consequences of one’s actions.

Indemnification: Protection from legal responsibility for the consequences of one’s actions.

Confidentiality: The practice of keeping information private.

Non-disclosure: A legal agreement that prevents one or both parties from disclosing certain information.

Duration: The length of time that something lasts.

Termination: The formal ending of something.

Renewal: The process of extending or continuing something.

Negotiation: A discussion between two or more parties to try and reach an agreement.

Contents

1. Identifying the parties involved in the agreement
2. Requesting and verifying identification information
3. Ensuring that all parties have the legal authority to enter into this agreement
4. Outlining the scope of services to be provided
5. Specifying the exact tasks to be completed
6. Describing the deliverables to be produced
7. Defining the terms of payment
8. Identifying the applicable currency
9. Establishing the payment schedule
10. Defining the process for invoicing
11. Establishing how disputes will be addressed
12. Identifying the applicable jurisdiction
13. Specifying how mediation or arbitration will be utilized
14. Discussing liability and indemnification provisions
15. Establishing the responsibility of each party
16. Defining the circumstances when liabilities may be incurred
17. Addressing confidentiality and non-disclosure considerations
18. Establishing what information may be shared
19. Describing the restrictions on the use of shared information
20. Determining the duration of the agreement
21. Establishing the start date
22. Setting the expiration date
23. Setting out any specific requirements for the services
24. Defining any licensing or certification requirements
25. Discussing any special access or equipment needs
26. Establishing termination and renewal procedures
27. Specifying the conditions for terminating the agreement
28. Outlining the process for renewing the agreement
29. Utilizing effective negotiation strategies
30. Identifying the goals and objectives of each party
31. Developing strategies for negotiating a mutually beneficial agreement

Get started

Identifying the parties involved in the agreement

• Identify all parties involved in the agreement and make sure you have their full legal names, contact information and other pertinent information
• If you are unsure of the legal name of any party involved, contact them to confirm
• If any of the parties are businesses, verify the business name and legal structure
• Check that all parties are of legal age and have the capacity to enter into a valid contract
• Make sure that all parties involved are aware of and understand the terms of the agreement
• When all parties involved have been identified and the necessary information has been gathered, you can move on to the next step.

Requesting and verifying identification information

• Request and verify the identification information of all parties involved in the agreement, such as their legal name, address, business registration information, and contact details.
• Ask for proof of identification, such as a driver’s license or other valid government-issued document.
• Verify the information provided matches the records of the company or individual.
• When you have successfully verified the identification information of all parties involved, you can check this step off your list and move on to the next step.

Ensuring that all parties have the legal authority to enter into this agreement

• Verify that all parties involved in the agreement are legally capable of entering into a contract
• Have all parties provide proof of identity, such as a driver’s license, passport, or other official identification
• Make sure that all parties have authorization to enter into the agreement on behalf of their respective organizations
• Ensure that all of the parties involved are of legal age in the jurisdiction where the contract is to be enforced
• Confirm that all parties are in good standing with any applicable regulatory agencies or bodies

When all parties involved have provided proper identification and authorization to enter into the agreement, you can check this step off your list and move on to outlining the scope of services to be provided.

Outlining the scope of services to be provided

• Research and define the services that will be provided
• Describe the services in a clear and concise manner
• Ensure that all parties involved understand the services to be provided
• Add any additional services that may be required
• Include any exclusions or limitations to the services being provided
• Make sure all parties agree on the services to be provided
• Once all parties agree on the services to be provided, add them to the agreement

You can check this off your list and move on to the next step when you have agreed on and included the services to be provided in the agreement.

Specifying the exact tasks to be completed

• List out the specific tasks to be completed by the contractor
• Provide detailed instructions on how each task should be completed
• Ensure all tasks are defined clearly and concisely
• Make sure the contractor has a full understanding of the tasks they are expected to complete
• Once the contractor has a full understanding of the tasks to be completed, you can move on to the next step.

Describing the deliverables to be produced

• Identify what exact deliverables will be produced
• Determine the timeline for the deliverables
• Decide on the format of the deliverables
• Establish what quality of deliverables is expected
• Outline any unique requirements for the deliverables
• Specify how the deliverables will be delivered to the client
• Describe how the deliverables will be accepted or rejected
• Once all deliverables have been specified, add the details to the agreement
• You can check this off your list when all deliverables have been defined in the agreement.

Defining the terms of payment

• Determine the payment terms of the agreement, such as the frequency, payment amounts, due dates, etc.
• List out specific details, such as the payment method, applicable taxes, and any other applicable fees.
• Decide if there are any incentives or penalties that should be included in the agreement.
• Include the payment terms in the final agreement.

You can check this step off your list when you have included the payment terms in the agreement.

Identifying the applicable currency

• Determine the currency in which all payments will be made in the agreement.
• Include the currency in the agreement in a clear and concise way.
• List the country of origin of the currency, if applicable.
• When you have included the applicable currency in the agreement, you can move on to the next step of establishing the payment schedule.

Establishing the payment schedule

• Determine the frequency of payments: will they be made monthly, quarterly, or annually?
• Set the due date of each payment: when will payments be due each month/quarter/year?
• Agree on a payment method: will payments be made by check, wire transfer, or other method?
• Outline any late fees: what is the penalty for late payments and when will it be applied?
• Specify the payment terms: will payments be made in advance, arrears, or upon completion of services?

Once the payment schedule has been established, you can move on to the next step of defining the process for invoicing.

Defining the process for invoicing

• Determine who will issue and process invoices (client or service provider)
• Establish the frequency of invoicing (weekly, monthly, etc.)
• Include a detailed description of the services provided in each invoice
• Include any applicable taxes, fees and/or surcharges
• Establish payment terms and due dates
• Specify the payment methods accepted (check, credit card, etc.)
• Agree on the process for handling late payments
• Specify how and when the service provider will be notified of payment

You’ll know when this step is complete when all of the above items have been addressed and agreed upon by both parties.

Establishing how disputes will be addressed

• Define the procedures for resolving any potential disputes that may arise throughout the agreement.
• Clarify the dispute resolution process, such as arbitration, mediation or a combination of both.
• Describe the dispute resolution process in detail, including the timeline and the way in which parties will be notified of the dispute.
• Consider including a clause that requires the parties to use their best efforts to resolve the dispute before seeking legal action.
• Make sure to include the applicable jurisdiction for any legal action that may be necessary.

You can check this off your list once you have included all of the necessary information about the dispute resolution process and applicable jurisdiction.

Identifying the applicable jurisdiction

• Research the governing law of the parties entering into the agreement
• Check if any of the parties is subject to a governing law outside of their jurisdiction
• Consider if any international or foreign laws are applicable
• Document the jurisdiction in the agreement
• Check off this step when the applicable jurisdiction is identified and documented in the agreement.

Specifying how mediation or arbitration will be utilized

• Determine whether the parties prefer to use mediation or arbitration to resolve any disputes arising out of the agreement
• Consider any applicable laws or regulations that may govern how disputes must be resolved
• Include a clause in the agreement that establishes the process to be used and the applicable rules
• Specify the location of the mediation or arbitration and the language to be used
• Ensure that the clause limits the costs that each party can incur
• When the clause has been drafted, review it to make sure it meets the needs of both parties
• Once both parties have agreed to the clause, the step is complete and you can move on to the next step.

Discussing liability and indemnification provisions

• Review the scope of services and liabilities each party will have
• Draft provisions that address both parties’ liability and indemnification in relation to the services
• Make sure to include the parties’ obligations regarding contractual warranties, representations, and indemnification
• Consider the consequences of any breach or violation of the agreement
• Outline the limitations of liability and indemnification
• When you have finalized the provisions and both parties agree, you can check this off your list and move on to the next step.

Establishing the responsibility of each party

• Identify what each party is responsible for in the agreement
• Describe the responsibilities in detail, such as who will be responsible for providing services, who will be responsible for payment, and who will be responsible for any other tasks or duties
• Specify any additional obligations of each party, such as any additional duties that one party may need to perform
• Include any specific language that both parties agree to and sign on
• Make sure to include key dates and deadlines

You can check this step off your list when both parties have agreed to the responsibilities and have included any additional obligations of each party, as well as any specific language that both parties have agreed to, signed on, and included any key dates and deadlines.

Defining the circumstances when liabilities may be incurred

• Identify the potential liabilities that could be incurred by either or both parties
• Consider what types of compensation, restitution or other remedies should be written into the agreement in the event of a breach of contract
• Set out the circumstances under which liabilities may be incurred, as well as the conditions under which either party may be held liable
• Include a clause outlining the extent to which each party is responsible for ensuring compliance with applicable laws and regulations
• Outline the scope of liabilities of each party
• Include a clause that defines when and how the liabilities may be amended
• Once all the details have been agreed upon and included in the agreement, the parties can sign off on the document.

Once all of the above items have been addressed and included in the Administrative Services Agreement, the step can be considered completed and the parties can move on to the next step.

Addressing confidentiality and non-disclosure considerations

• Review the information to be shared and determine if it should be considered confidential or not.
• Establish and document the confidential information (if any) that will be shared and the terms of use for that information.
• Draft a non-disclosure agreement to include in the administrative services agreement.
• When the non-disclosure agreement is completed, review it to ensure that it is comprehensive, accurate, and legally binding.

When you have completed the above, you can move on to the next step - Establishing what information may be shared.

Establishing what information may be shared

• Identify the types of information that may be shared between the parties
• Specify the scope of information that may be shared
• Ensure that the information shared is relevant to the agreement
• Define the purpose of the information sharing
• Outline the process for exchanging information
• Determine the duration of the information exchange
• Check if any legal or regulatory requirements must be taken into account

When you have identified the information that may be shared between the parties and have specified the scope, purpose and process of the information exchange, you can check this step off your list and move on to the next step.

Describing the restrictions on the use of shared information

• Ensure that all parties to the agreement understand that the shared information cannot be used to the detriment of any other party
• Establish how the shared information can be used, including any restrictions that apply, such as if the information can be shared with other parties, or if it is to be kept confidential
• Clarify any limits on the use of the shared information, such as what is allowed, what is not allowed, and when the shared information can be used
• Outline any additional restrictions or limitations that may apply, such as a prohibition on using the shared information for marketing or advertising purposes
• Include a clause that outlines any penalties for breaching the restrictions on the use of shared information

When you can check this off your list and move on to the next step:

• All restrictions and limitations on the use of shared information have been clearly established in the agreement.

Determining the duration of the agreement

• Clarify how long the agreement will be in effect.
• Discuss the parameters for the duration of the agreement and set a timeline.
• Consider the option of including a renewal clause in the agreement to extend the duration.
• Decide if the agreement should terminate upon completion of the services or upon meeting certain milestones.
• Ensure that any termination clause is clearly outlined in the agreement.
• When you have finalized the duration of the agreement, check it off your list and move on to the next step.

Establishing the start date

• Work with the other party to determine a reasonable start date for the agreement
• Consider factors such as when each party can be ready to begin working, any applicable holidays or other events that could affect the start date, and the duration of the agreement itself
• Once the start date has been agreed upon, document this date in the agreement and have both parties sign the agreement to signify their agreement to the start date
• You’ll know that you can move onto the next step of setting the expiration date when the start date has been agreed upon and documented in the agreement.

Setting the expiration date

• Agree on a suitable expiration date for the administrative services agreement. This should be a date that is realistic and achievable for both parties.
• Ensure that the date is clearly stated in the agreement.
• Consider the possibility of extending the agreement beyond the expiration date, if needed.
• Once the expiration date is set and stated in the agreement, you can move on to the next step, which is setting out any specific requirements for the services.

Setting out any specific requirements for the services

• Identify the services that need to be provided and clearly define the responsibilities of each party
• Include any specific qualifications or certifications the service provider may need to possess in order to provide the services
• Define the expected outcomes of the services and how they will be measured
• Specify any additional services that may be required and how they will be billed
• Include any additional clauses or terms that may be necessary for the agreement
• Once all of the services and specific requirements have been outlined, check off this step and move on to the next step.

Defining any licensing or certification requirements

• Identify any licenses or certifications that are necessary for the performance of the services outlined in the agreement.
• Include language in the agreement that requires your service provider to possess the necessary licenses and certifications.
• Outline any penalties that may be imposed if the service provider fails to maintain the necessary licenses or certifications.
• Have your service provider provide proof of the necessary licenses and certifications before commencing work.

Once you have identified and outlined the necessary licensing or certification requirements and have received proof from your service provider, you can move onto the next step.

Discussing any special access or equipment needs

• Talk to the administrative services provider and confirm what special access or equipment they require to fulfill the agreement.
• Ask the provider if they have any special requirements for equipment or software that will need to be purchased or leased.
• Make sure that the administrative services provider has the necessary access to the necessary systems and networks.
• Confirm that the provider has the ability to access the necessary data and systems.
• Make sure the provider is aware of any potential security or privacy concerns related to the access or equipment required.
• Once all special access and equipment needs have been covered and discussed, you can check this off your list and move on to the next step.

Establishing termination and renewal procedures

• Identify the conditions that would cause either party to terminate the agreement
• Outline the procedure for terminating the agreement, including notification requirements
• Specify the notice period for both terminating the agreement and for renewing the agreement
• Determine any limitations for either party when it comes to renewal and/or termination
• Agree on the terms for renewal and termination of the agreement

Once the conditions for terminating the agreement and the terms for renewal are outlined, you can check this step off your list and move onto the next step of specifying the conditions for terminating the agreement.

Specifying the conditions for terminating the agreement

• Decide and agree on the conditions for terminating the agreement
• Identify the situations that would trigger the termination of the agreement
• Specify the procedure for informing the other party of the agreement termination
• Define the timeline for the termination process
• Outline any applicable penalties or costs associated with terminating the agreement
• When all the conditions of the agreement termination are specified, you can move on to the next step of Outlining the process for renewing the agreement.

Outlining the process for renewing the agreement

• Discuss and agree on the timeline for renewing the agreement
• Decide if the same terms and conditions will be applied to the renewal or if they need to be updated
• Ensure that both parties understand the renewal process and the timelines involved
• Develop a process to ensure that the agreement is renewed before the expiration date
• Once the process is agreed upon and the timeline is established, both parties should sign the agreement to solidify the renewal process
• When both parties have signed the agreement, you can check this step off the list and move on to the next step.

Utilizing effective negotiation strategies

• Prepare for negotiation by researching relevant information on the issue, including the other party’s interests, constraints, and previous positions.
• Have a clear understanding of what you are looking to achieve with the negotiation.
• Establish a set of negotiation goals before the process begins and stick to them.
• Communicate your goals and objectives openly and honestly.
• Listen to the other party’s points and take them into consideration.
• Utilize effective negotiation strategies such as the win-win approach, the concession strategy, and the BATNA strategy.
• Remain flexible and open to compromise.
• Reach an agreement that is mutually beneficial.

You will know that you have completed this step when you have successfully negotiated an administrative service agreement that meets the goals and objectives of both parties.

Identifying the goals and objectives of each party

• Understand what is important to each party in the agreement
• Ask questions to each party to identify the goals and objectives
• Make a list of each party’s goals and objectives
• Identify the common goals and objectives between the two parties
• Make sure the goals and objectives of each party are clear and understood by both parties

When you can check this off your list:

• When you have a clear understanding of the goals and objectives of each party in the agreement.

Developing strategies for negotiating a mutually beneficial agreement

• Review all existing contracts and agreements between the parties, as well as any existing policies, procedures, or rules that may be relevant
• Analyze the legal and business aspects of the deal, including the roles and responsibilities of each party
• Make sure to include the terms and conditions in the agreement that are necessary for a successful negotiation and long-term relationship
• Develop a strategy for negotiating a fair and mutually beneficial agreement
• Outline a timeline for reaching an agreement
• Identify any potential issues or obstacles that may arise during the negotiation process
• Make sure to address any potential risks or liabilities that may be associated with the agreement

How you’ll know when you can check this off your list and move on to the next step:

Once you have reviewed the existing contracts and agreements, analyzed the legal and business aspects of the deal, developed a strategy for negotiating the agreement, outlined a timeline for reaching an agreement, and identified any potential issues or obstacles that may arise, you will be ready to move on to the next step.

FAQ

Q: What is the difference between a UK, USA, and EU Administrative Services Agreement?

Asked by John on April 14th 2022.
A: An Administrative Services Agreement (ASA) is a contract between two parties that outlines the services one party will provide to the other. The specifics of the agreement will vary depending on the jurisdiction in which it is created. In the UK, an ASA is known as a Service Level Agreement (SLA), while in the USA and EU it is usually referred to as an Administrative Services Agreement. Each jurisdiction has its own laws and regulations which govern ASAs, so it is important to be aware of which jurisdiction’s laws apply when creating an ASA.

Q: How do I know which jurisdiction to use when writing an Administrative Services Agreement?

Asked by Emma on May 5th 2022.
A: The jurisdiction you choose for your Administrative Services Agreement (ASA) should depend on the laws and regulations governing your industry, sector or business model. For example, if your business operates in the UK, then you should use UK laws and regulations when creating your ASA. Similarly, if your business operates in the USA or EU, you should use USA or EU laws respectively when creating your ASA. It is important to be aware of any specific requirements of each jurisdiction that may affect your agreement.

Q: How do I make sure my Administrative Services Agreement is compliant with applicable laws and regulations?

Asked by David on June 2nd 2022.
A: The best way to ensure that your Administrative Services Agreement (ASA) is compliant with applicable laws and regulations is to consult with a lawyer who specializes in contracts law. They will be able to advise you on specific requirements for each jurisdiction and make sure that your ASA meets all legal requirements. Additionally, they can also help you identify any potential risks associated with your agreement and provide advice on how to mitigate those risks.

Q: What are some common clauses included in an Administrative Services Agreement?

Asked by Jessica on July 8th 2022.
A: Common clauses that are included in an Administrative Services Agreement (ASA) include provisions related to payment terms, services provided, service levels, warranties, indemnification, termination, dispute resolution and confidentiality. Depending on the specifics of each agreement these clauses may vary, but these are generally accepted as standard clauses for all ASAs.

Q: What kind of payment terms should I include in my Administrative Services Agreement?

Asked by Michael on August 10th 2022.
A: The payment terms you include in your Administrative Services Agreement (ASA) should depend on the type of services being provided and the length of time for which those services will be provided. Generally speaking, payment terms should specify how much will be paid upfront and how often further payments should be made throughout the duration of the agreement. Payment terms should also specify what form of payment will be accepted - whether it’s cash, cheque or credit card - as well as any additional fees that may apply such as late fees or interest charges.

Q: How can I ensure my Administrative Services Agreement is legally binding?

Asked by Jennifer on September 11th 2022.
A: To ensure that your Administrative Services Agreement (ASA) is legally binding it must be signed by both parties involved in the agreement. Additionally, both parties must have given their consent to enter into the agreement - meaning that both parties have read and agreed to all of its terms and conditions without coercion or duress from either party. It is important to note that not all ASAs are considered legally binding - some may need extra steps such as being witnessed by a third party or having a court order issued in order for them to be enforced in court.

Q: What kind of remedies can I include in my Administrative Services Agreement?

Asked by Christopher on October 15th 2022.
A: Remedies are a form of legal protection for both parties involved in an Administrative Services Agreement (ASA). They can range from monetary damages to specific performance orders (i.e., forcing one party to take specific action). It is important to consider what remedies would be appropriate for each situation - if either party fails to perform their obligations then there should be a clear remedy outlined in the agreement that both parties agree upon prior to signing it. Additionally, remedies should also take into account any potential risks associated with entering into the agreement so that any losses incurred can be minimized if necessary.

Q: What kind of dispute resolution methods should I include in my Administrative Service Agreement?

Asked by Matthew on November 19th 2022.
A: Dispute resolution methods outline how disputes between the parties involved in an Administrative Service Agreement (ASA) will be resolved if they occur during or after completion of the contract term. Common methods include negotiation or mediation between both parties involved; arbitration; or legal proceedings where a court decides how any dispute will be resolved based upon applicable law(s). It is important to consider which method would be most appropriate for each situation - for example, arbitration may work better for disputes involving large sums of money; while negotiation may work better for disputes involving smaller amounts or more complex issues such as intellectual property rights or confidentiality agreements.

Q: Do I need an Administrative Services Agreement if I’m only providing services within my own company?

Asked by Ashley on December 20th 2022.
A: While it may not always be necessary to have an Administrative Services Agreement (ASA) if you are only providing services within your own company, it can help protect both parties involved from potential disputes or misunderstandings down the line if something goes wrong during or after completion of the services provided. An ASA can also make sure that both parties understand their respective obligations throughout the duration of their agreement - this helps ensure that all services are provided efficiently and effectively while also mitigating any potential risks associated with providing those services within one’s own company structure.

Example dispute

Suing a Company for Breach of Administrative Services Agreement:

• Plaintiff must show that a valid administrative services agreement exists between them and the defendant.
• Plaintiff must show that the defendant has violated the terms of the administrative services agreement.
• Plaintiff must show that they have suffered damages because of the defendant’s breach of the administrative services agreement.
• Plaintiff must show that the damages are reasonably calculable and can be compensated for.
• Plaintiff must be able to prove the defendant’s breach of the administrative services agreement through evidence.
• Plaintiff must be able to demonstrate that their losses are a direct result of the defendant’s breach of the administrative services agreement.
• Plaintiff can seek damages for the costs associated with rectifying the breach, as well as the costs of any lost profits or other losses incurred as a result of the breach.
• Plaintiff can seek an injunction to prevent the defendant from continuing to breach the administrative services agreement.
• Plaintiff may also be able to seek punitive damages if the defendant’s breach was particularly egregious.
• Settlement may also be possible if both parties can come to an agreement on the damages and how they should be paid.

Templates available (free to use)

Management And Administrative Services Agreement

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