How to Use This Checklist
Click each checkbox to mark items as complete. Your progress is automatically saved to your browser. Use this checklist to:
✅ Three Ways to Use This Tool
1. Draft new SLAs: Ensure you don't miss any essential service level agreement elements
2. Review existing SLAs: Audit your current agreements against all 48 compliance points
3. Negotiate contracts: Verify both parties' obligations are clearly defined and balanced
⚠️ What is a Service Level Agreement?
📋 Definition: An SLA is a contract between a service provider and client that defines service standards, performance metrics, and remedies for non-compliance.
⚖️ Legal Status: SLAs are legally binding contracts under UK law. Missing essential terms can make the agreement unenforceable.
🎯 Purpose: SLAs protect both parties by setting clear expectations for service delivery, uptime targets, response times, and financial consequences of failure.
💼 Common Uses: IT services, cloud hosting, managed services, software-as-a-service (SaaS), telecommunications, and any ongoing service relationship
⚠️ Understanding Importance Levels
🔴 Critical: Must have - omission creates serious legal risk and may make the agreement unenforceable
🟡 Important: Should have - recommended for proper protection and clarity
🔵 Recommended: Best practice - enhances clarity and prevents disputes
Service Provider Legal Name
Full legal name of the company providing services, exactly as registered with Companies House. Required for contract enforceability under UK law.
🔴 Critical
Provider Registered Address
Complete registered office address of the service provider. Required for legal notices and service of documents under UK Companies Act 2006.
🔴 Critical
Provider Company Number
Companies House registration number. Recommended for verification and due diligence. Demonstrates legitimate registered entity.
🔵 Recommended
Client Legal Name
Full legal name of the client organization receiving services. Essential for contract formation and enforceability. Both parties must be clearly identified.
🔴 Critical
Client Registered Address
Complete registered address of the client. Required for legal notices, invoicing, and service of documents.
🔴 Critical
Client Company Number
Client's Companies House number if applicable. Useful for verification purposes and commercial credit checks.
🔵 Recommended
Agreement Date
Date when both parties sign the agreement. Establishes when contractual obligations become legally binding. Required for contract formation.
🔴 Critical
Commencement Date
Date when services actually begin. May differ from agreement date. Defines when performance obligations and service levels start. Critical for calculating service credits and uptime.
🔴 Critical
Initial Term Duration
Length of the initial contract period (e.g., 12 months, 24 months, 36 months). Defines minimum commitment. Required for clarity on contractual obligations and termination rights.
🔴 Critical
⚠️ Service Scope is Essential
UK contract law requires "certainty of terms" - vague descriptions like "IT services" or "support" are insufficient. You must specifically define what services are provided, what's included, and critically, what's excluded. Without clear scope, disputes over deliverables are likely and the contract may be unenforceable.
Detailed Services Description
Comprehensive description of services to be provided. Must be specific: hosting, monitoring, support, backups, updates, etc. Required by UK contract law for certainty of terms.
🔴 Critical
Service Inclusions Specified
Clear list of what IS included in the service. Examples: system monitoring, technical support channels, backup frequency, security patches. Prevents scope creep.
🔴 Critical
Service Exclusions Defined
Clear list of what is NOT included. Examples: custom development, on-site support, third-party software licenses. Protects provider from unreasonable expectations.
🟡 Important
Service Hours Defined
When services are available: 24/7/365, business hours (9-5 Mon-Fri), extended hours, or custom. Defines when service levels apply. Critical for measuring uptime and response times.
🔴 Critical
Service Delivery Method
How services will be delivered: cloud-based, on-premises, hybrid, via portal/helpdesk. Sets expectations for access and delivery mechanisms.
🔵 Recommended
⚡
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Uptime/Availability Target
Percentage of time services will be available (e.g., 99.9%, 99.5%). Must specify measurement period (monthly/quarterly) and how downtime is calculated. Core SLA metric.
🔴 Critical
Scheduled Maintenance Windows
Define when planned maintenance occurs and whether it counts toward uptime calculations. Typically excluded from availability metrics. Protects provider during necessary updates.
🟡 Important
Performance Metrics
Additional measurable targets beyond uptime: page load times, transaction processing speeds, data throughput. Specific to service type. Demonstrates quality commitment.
🔵 Recommended
Measurement Methodology
How service levels will be measured and monitored: monitoring tools, data sources, calculation methods. Prevents disputes over whether targets were met. Essential for transparency.
🟡 Important
⚠️ Why Priority Levels Matter
Without defined priority levels and response times, clients may expect immediate responses to low-priority issues, creating unsustainable support burdens. Priority systems protect providers while ensuring critical issues get urgent attention. Both parties benefit from clarity.
Priority Level Definitions
Clear criteria for each priority: P1 (Critical - total service failure), P2 (High - major degradation), P3 (Medium - minor issues), P4 (Low - requests/questions). Prevents disputes over classification.
🔴 Critical
P1 Initial Response Time
How quickly provider acknowledges critical incidents (e.g., 15 minutes, 30 minutes). Response means acknowledgment and investigation start, not resolution. Critical for emergency situations.
🔴 Critical
P1 Target Resolution Time
Goal for resolving critical incidents (e.g., 4 hours, 8 hours). "Target" not guarantee - complete resolution may require longer for complex issues. Sets expectations for urgent fixes.
🔴 Critical
P2 Response and Resolution Times
High priority incident targets (e.g., 1 hour response, 8 hours resolution). Major issues affecting significant users or functionality but not complete service failure.
🟡 Important
P3 Response and Resolution Times
Medium priority targets (e.g., 4 hours response, 3 business days resolution). Minor issues with workarounds available or affecting limited users.
🟡 Important
P4 Response and Resolution Times
Low priority targets (e.g., 1 business day response, 10 business days resolution). General questions, feature requests, cosmetic issues. Allows efficient resource allocation.
🔵 Recommended
Business Hours Definition
If using "business days" or "business hours," define exactly what this means: 9 AM-5 PM Monday-Friday UK time, excluding bank holidays. Prevents calculation disputes.
🟡 Important
Escalation Procedures
What happens if response/resolution times aren't met: automatic escalation to senior staff, notification to management. Provides recourse path for clients.
🔵 Recommended
Reporting Frequency Defined
How often provider reports on service levels: monthly, quarterly, or both. Regular reporting demonstrates transparency and allows monitoring of SLA compliance.
🟡 Important
Report Contents Specified
What information reports will contain: uptime percentages, incident summaries, response time compliance, service credit calculations. Ensures meaningful transparency.
🔵 Recommended
Report Delivery Method
How reports are provided: email, online portal, automated dashboard. Ensures client has easy access to performance data for monitoring compliance.
🔵 Recommended
⚠️ Service Credits Are Financial Remedies
Service credits compensate clients when providers fail to meet service levels. Without defined credits, clients may claim breach of contract and pursue full damages. Service credits typically limit liability to credits rather than damages, protecting providers while fairly compensating clients. This is a critical negotiated term.
Service Credits Included or Excluded
Clear statement whether service credits apply for SLA breaches. Some agreements have service levels without financial penalties. Must be explicit either way.
🔴 Critical
Credit Calculation Methodology
How credits are calculated: percentage of monthly fees based on uptime tiers (e.g., 99.0-99.9% = 5% credit, 98.0-98.9% = 10% credit). Must be mathematical and unambiguous.
🔴 Critical
Maximum Credit Cap
Maximum service credits available in any period (e.g., 25% of monthly fees, 100% of monthly fees). Protects provider from unlimited liability while ensuring meaningful compensation.
🟡 Important
Credit Claim Process
How clients request credits: timeframe for claims (e.g., within 30 days), submission method, approval process. Without procedure, credit mechanism is unworkable.
🟡 Important
Exclusions from Service Credits
Circumstances where credits don't apply: client-caused outages, scheduled maintenance, force majeure, third-party failures beyond provider control. Protects provider from unfair credit claims.
🔴 Critical
Complete Fee Structure
All fees clearly stated: monthly/annual service fees, setup fees, per-user charges, overage fees, professional services rates. Required by UK contract law for certainty on consideration.
🔴 Critical
Payment Terms
When payment is due: advance monthly, 30 days from invoice, etc. Late payment terms and interest. Required for clarity on payment obligations.
🔴 Critical
Payment Methods
Accepted payment methods: BACS transfer, Direct Debit, credit card, cheque. Include bank details or payment portal information. Practical requirement for processing payments.
🟡 Important
Fee Increase Mechanism
How and when fees can increase: annual RPI adjustment, specific percentage cap, notice period required. Without this, provider cannot increase fees during term.
🟡 Important
Currency and VAT
Currency for all payments (GBP). State whether fees include or exclude VAT. UK VAT Act 1994 requires VAT clarity to avoid disputes over amounts due.
🔴 Critical
Late Payment Consequences
What happens on non-payment: late fees (as permitted by Late Payment of Commercial Debts Act), interest rate, suspension of services, termination rights. Protects provider's revenue.
🟡 Important
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Overall Liability Cap
Maximum liability for all claims: fixed amount (£100,000), multiple of fees (12 months fees), or percentage. UK Unfair Contract Terms Act allows reasonable caps. Must exclude death/injury/fraud.
🔴 Critical
Excluded Liabilities
Types of loss provider isn't liable for: indirect losses, consequential damages, loss of profits, loss of data. Common in UK B2B contracts. Must be reasonable under UCTA 1977.
🔴 Critical
Exceptions to Liability Caps
Matters where caps don't apply: death/personal injury, fraud, fraudulent misrepresentation, breaches that cannot be excluded under UK law. Required by UCTA 1977.
🔴 Critical
Service Credits as Sole Remedy
Statement that service credits are the sole and exclusive remedy for SLA breaches. Prevents clients claiming both credits AND damages. Critical protection limiting provider exposure.
🔴 Critical
Auto-Renewal Terms
Whether agreement automatically renews and for what period (monthly, annually). If auto-renewal applies, specifies renewal term length and that fees may change on renewal.
🔴 Critical
Termination for Convenience Notice
How much notice either party must give to end agreement without cause: 30 days, 60 days, 90 days. Cannot terminate during initial term. Provides exit path while protecting minimum commitment.
🔴 Critical
Termination for Cause
When immediate termination is allowed: material breach not cured within 30 days, insolvency, non-payment. Protects both parties from sustained breaches. Standard UK contract provision.
🟡 Important
Post-Termination Obligations
What happens on termination: data handover procedures, return of client data, final invoices, survival of confidentiality/liability clauses. Prevents disputes during exit.
🟡 Important
Fees on Early Termination
Financial consequences of early termination: remaining months must be paid, early termination fee, or no penalty. Without clarity, disputes arise over what's owed on exit.
🟡 Important
Governing Law
Which UK jurisdiction's laws apply: England & Wales, Scotland, or Northern Ireland. Essential for determining legal rights and which courts have jurisdiction. Standard UK contract requirement.
🔴 Critical
Dispute Resolution
How disputes are resolved: UK courts, arbitration, mediation first. Specifies which courts have exclusive jurisdiction (e.g., Courts of England & Wales). Required for enforcement.
🔴 Critical
Amendment Process
How agreement can be changed: written agreement of both parties, provider can update with notice. Without amendment clause, changes require mutual written consent.
🟡 Important
Entire Agreement Clause
States this agreement supersedes all prior negotiations, representations, and agreements. Standard UK contract clause preventing claims based on pre-contract statements. Protects both parties.
🟡 Important
⚡
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Next Steps
Now that you've reviewed the compliance checklist, you have three options:
✅ Use Our Ready-Made Template (Recommended)
Save hours of legal research and drafting. Our professionally-crafted service level agreement covers all 48 compliance points with legally-sound wording. Available in both Interview Mode (guided questionnaire) and Editor Mode (direct editing) for just £10.
📝 Draft Your Own SLA
Use this checklist as your guide, but remember: getting the legal wording correct is complex. SLAs require precise language around service levels, response times, liability caps, termination rights, and service credits. A single compliance gap can result in disputes or unenforceable terms.
⚖️ Book a Legal Consultation
For complex service arrangements, high-value contracts, or if you need customized SLA terms beyond standard templates, consider booking a consultation with our legal professionals for personalized advice tailored to your specific circumstances.
Need personalized legal advice? Book a consultation →