Bass, Berry & Sims attorneys Steele Clayton and Shelley Thomas authored an article outlining key details companies should consider when creating service level agreements with vendors. As more and more companies are outsourcing various job functions in an effort to save costs, ensuring that properly defined metrics are established in all vendor agreements is essential to ensuring long-term success. In the article, Steele and Shelley recommend including the following key components in any agreement:
- Clearly documented and specific performance guarantees
- Use of service level agreements to measure performance
- A predetermined forum to resolve any disputes that may arise
- Defined contractual remedies in case deliverables are not met
The article, "Negotiation Considerations For Performance Guarantees And Service Level Agreements," was published by Manufacturing Business Technology on April 2 and is available online.