Service Level Agreement

Service Level Agreement

A service-level agreement (SLA) defines the level of service you expect from a vendor, laying out the metrics by which service is measured, as well as remedies or penalties should agreed-on service levels not be achieved. It is a critical component of any technology vendor contract. Usually, SLAs are between companies and external suppliers, but they may also be between two departments within a company.

​​The SLA should include not only a description of the services to be provided and their expected service levels, but also metrics by which the services are measured, the duties and responsibilities of each party, the remedies or penalties for breach, and a protocol for adding and removing metrics.Metrics should be designed so bad behaviour by either party is not rewarded. For example, if a service level is breached because the client did not provide information in a timely manner, the supplier should not be penalised.

Any significant contract without an associated SLA (reviewed by legal counsel found on your Lacoona platform) is open to deliberate or inadvertent misinterpretation. This SLA protects both parties in the agreement.

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