Master Service Agreements

Ever feel like you are spending too much time negotiating the same contract terms over and over? Enter the Master Service Agreement (MSA), your ticket to smoother, faster business relationships.

What’s an MSA, and Why Should You Care?

Think of an MSA as your business relationship’s constitution. It is a foundational contract that sets the ground rules for all your future dealings with a service provider or client. Instead of starting from scratch each time you need to make a deal, you can focus on the specifics of each new project while your MSA handles the heavy lifting of general terms and conditions.

When Does an MSA Make Sense?

You will want an MSA in your corner when:

• You are looking at a long-term business relationship
• You expect multiple projects or transactions
• You work in industries like Procurement, IT, Marketing, or HR where ongoing services are the norm
• You want to cut down on legal review time and costs
• You need flexibility to adapt to changing business needs

1. Liability Limits

Set clear boundaries on what each party is responsible for and cap potential damages. Think of it as your financial safety net.

2. Point Person

Designate your go-to people who can make decisions and keep communications clear. No more “Who do I talk to about this?” moments.

3. Intellectual Property Protection

Address the three IP essentials:

• Who owns what going in
• Who owns what coming out
• How everyone can use the IP involved
• Protection against third-party claims

4. Confidentiality Clauses

Keep your trade secrets safe with clear rules about how sensitive information should be handled. What happens in the MSA stays in the MSA.

Communication Breakdowns. Solution: Establish clear communication channels and response times upfront. Your designated contact persons should be your communication quarterbacks.

Product Quality Issues. Solution: Define quality standards and acceptance criteria in detail. What does “good” look like? Spell it out.

Missed Deadlines. Solution: Break projects into manageable milestones with clear timelines. Consider using contract management software to track deadlines automatically.

Conflicting Terms. Solution: Make sure your MSA and project-specific agreements (SLAs) play nice together. Clear hierarchy of documents helps prevent confusion.

Unclear Responsibilities. Solution: Leave no room for “I thought you were handling that.” Spell out who’s responsible for what, including tools, equipment, and post-project support.

Payment Problems. Solution: Crystal-clear payment terms are your friend. Define when payments are due, what approvals are needed, and what happens if someone misses a deadline.

A well-crafted MSA is your business relationship’s best friend. It saves time, reduces headaches, and lets you focus on what really matters, getting work done and growing your business. While it might take some effort to set up initially, think of it as an investment in smoother sailing ahead.

Remember: The best MSA is one that’s clear, comprehensive, and flexible enough to grow with your business relationship. Take the time to get it right up front, and you’ll thank yourself later.

Pro tip: Consider working with a professional to ensure your MSA covers all the bases for your specific situation. What works for one business relationship might not work for another.

At Levelpath, we don’t just provide a software solution; we provide a customer commitment in the form of a partnership. Our success team is dedicated to empowering procurement with the knowledge, tools and support they need to stay curious and continually drive procurement transformation. From initial workspace setup to advanced customization and beyond, the Levelpath community is there every step of the way.

To learn more about how Levelpath can help your organization move faster, uncover risks earlier, and keep people focused on the more strategic work, request a demo today.