Suggested Frequency for Revisiting Service Arrangements
- March 9, 2023
With professional services and upfront service/pricing agreements, how frequently should the service arrangement be revisited?
The frequency with which a service arrangement should be revisited depends on several factors, including the type of service being provided, the length of the contract, and the specific needs of the parties involved. Here are some general considerations:
- Type of Service: Different types of services may require different review cycles. For example, a professional consulting service may require more frequent check-ins than a software subscription service.
- Length of Contract: The length of the service contract can also impact the review cycle. For long-term contracts, it may be necessary to revisit the service arrangement more frequently than for shorter-term agreements.
- Complexity of the Service: If the service is complex and requires ongoing adjustments, it may need to be revisited more frequently than a service that is more straightforward.
- Changing Circumstances: If there are changes in the business environment, market conditions, or regulatory landscape that impact the service arrangement, it may be necessary to revisit the agreement more frequently.
In general, it’s a good idea to schedule regular check-ins with your service provider to review the service arrangement and assess its effectiveness. This could be done quarterly, semi-annually, or annually, depending on the factors listed above. It’s important to have open and honest communication with your service provider to ensure that the arrangement continues to meet your needs and expectations.
If circumstances change, should a new service agreement be put into play or should the old service agreement be appended?
Whether to create a new service agreement or to append the existing one will depend on the nature and scope of the changes in circumstances.
If the changes are significant and affect a substantial portion of the service agreement, it may be more appropriate to create a new service agreement that reflects the updated terms and conditions. In this case, a new service agreement would help ensure that both parties are on the same page and have a clear understanding of the updated terms.
On the other hand, if the changes are minor and do not fundamentally alter the nature of the service agreement, it may be more practical to simply append the existing service agreement with an addendum or amendment that outlines the new terms.
In either case, it’s important to ensure that any changes are documented in writing and that both parties have a clear understanding of the updated terms. It’s also a good idea to review the revised agreement with legal counsel to ensure that it complies with any relevant laws and regulations.
Accountant, Technologist & Futurist
