What Is The Current Status Of Your Position Under Current Master Service Agreement

Master Service Agreement Vs Statement of Work

Comparing a Main Service Agreement (MSA) vs Statement of Work (SOW) is relatively straightforward. The MSA is a comprehensive, overarching contract, while the SOW is far more than detailed. Although each contract is unique, the MSA and SOW fit together to complete an agreement between two businesses. By leveraging an AI contract review platform, a corporate legal section can ensure complementary agreements that avoid contradictory terms.

Attorney using graphs to consider master service agreement vs statement of work

Comparison a Master Service Understanding Vs Statement of Work

Approaching MSAs and SOWs as though they are contradistinctive agreements can be a mistake because the ii documents should work together seamlessly to ensure contract expectations are met without variation.

MSA

SOW

The MSA provides an overarching contract. It governs the expectations and agreements for the life of a business organization human relationship so that a unique contract is not required for each new job. Typical clauses in an MSA include:

Payment terms
Warranties
Dispute resolution
Termination provisions
Ethics, diversity, and responsibility statements

The SOW is more granular. It will cover the specific aspects of a chore, and terms will but embrace that working relationship. Essentially, SOWs encompass the details that an MSA does not. Common clauses include:

Scope of work
Projection phases and allocated hours
Hourly rates
Supply costs
Dates and deadlines
Applicable service fees
Involved parties and representatives

When executed correctly, the MSA simplifies the business organisation relationship while the SOW offers chore-specific details. However, because the ii contracts are unique, duplicate clauses that tin create contradictions are possible.

Resolving Conflicts Between the MSA and the SOW

While some overlap may exist between an MSA and an SOW, both documents should isolate terms to avoid contradictions. For instance, the MSA may establish a payment schedule as 30 days after invoice remittance. Meanwhile, the SOW may country that payment is due on remittance. A contradiction similar this tin create unnecessary conflict that parties could have avoided by relying on 1 document to set the specific payment terms.

In the event of such a discrepancy, the MSA commonly takes precedence, as it governs the entire relationship. However, this can create bug for the visitor contracting the service since the MSA is typically less detailed and can introduce more ambiguity. Ensuring accuracy in the initial MSA while using the SOW to negotiate can present the all-time approach to managing these documents effectively.

Streamlining Review and Negotiation With LexCheck

The MSA is a long-term contract that requires accuracy. As the MSA establishes terms that govern the lifetime of the relationship, these agreements may demand pregnant contract negotiation. Executing MSA agreements may require multiple rounds of attorney review and negotiation to ensure the near equitable arrangement. LexCheck's AI-based legal engineering tin can assist ensure accurateness while accelerating the transition from negotiation to contract execution.

LexCheck and MSAs

LexCheck's AI can use information garnered from the business organization and its prior contracts to advise revisions to the MSA and ensure a more accurate long-term arrangement. It can redline certain areas and warn the reviewer of clauses that may be unenforceable or dissentious to the business. For example, it may annotation that the contract expiration date is excessive compared to opt-out provisions for the customer. An AI contract platform could also suggest alternative dates or opt-out clauses.

When drafting and negotiating Primary Service Agreements vs Statements of Work, approach them as complementary agreements. The MSA establishes the relationship while the SOW guides the chore. Past leveraging the power of AI, companies can streamline and accelerate the review and negotiation process of these agreements to ensure equitable agreements for the long term. Whether LexCheck'south AI is reviewing agreements for contradictions, ensuring MSA accuracy, or guiding SOW negotiations, consummate markups are completed in minutes.

When reviewing and negotiating a Master Service Understanding, LexCheck'south AI-powered platform automates and accelerates the procedure, saving legal departments valuable time and resources. To experience the technology, request a demo , or connect with us at sales@lexcheck.com to acquire more.

Gary Sangha | Founder & CEO

Gary Sangha is the Founder and CEO LexCheck. He's a serial entrepreneur and an bookish. Gary previously founded Intelligize, a legal engineering company that was caused by LexisNexis. He'due south affiliated with the Academy of Pennsylvania and Stanford University and started his career as an attorney at Shearman & Sterling and White & Case.