Service Agreement Template
A service agreement is a written contract that spells out what you will do for a customer, when, at what price, and under what terms. This page gives you a plain-language template you can copy, adapt, and put in front of customers. Fill in the bracketed placeholders, delete anything that does not apply to your trade, and keep the language you actually intend to honor.
Use this as a starting point, not a finished legal document. Every section below includes sample wording and a short explanation of what to put there and why.
Important: This template is educational and is not legal advice. Contract law, consumer-protection rules, and licensing requirements vary widely by state, province, and locality. Have your final wording reviewed by a qualified attorney in your jurisdiction before you use it with customers.
The template at a glance
| Section | What it settles | Why it matters |
|---|---|---|
| Parties | Who is bound by the agreement | A contract needs clearly identified parties to be enforceable |
| Services included / excluded | The exact scope of work | Prevents "I thought that was covered" disputes |
| Visit schedule & frequency | When and how often you show up | Sets expectations and lets you plan capacity |
| Term & renewal | How long it lasts and how it renews | Avoids ambiguity when the period ends |
| Pricing & payment | What is owed and when | Protects cash flow and reduces late payment |
| Response times / priority | How fast you respond to requests | Often the main reason customers sign |
| Cancellation | How either side exits | Limits surprises and bad-faith exits |
| Signatures | Consent and effective date | Turns a proposal into a binding agreement |
1. Parties
Identify both sides by legal name and address, and name the property or equipment covered.
This Service Agreement ("Agreement") is entered into on [DATE] between [YOUR BUSINESS LEGAL NAME], [ADDRESS] ("Provider"), and [CUSTOMER NAME], [SERVICE ADDRESS] ("Customer"), covering the property and equipment described in Section 2.
What to put here and why: Use legal entity names, not brand names, so it is clear who is actually bound. If the service address differs from the billing address, list both. Naming the covered property up front prevents confusion when a customer owns multiple sites.
2. Services included / excluded
This is the most disputed section, so be specific. List what is covered, then explicitly list what is not.
Included: [e.g., two seasonal inspections per year; cleaning of [system]; filter replacement; a written condition report after each visit.]
Excluded: [e.g., parts and materials, priced separately; repairs arising from misuse or storm damage; work requiring permits; after-hours emergency calls unless added under Section 6.]
What to put here and why: Vague scope ("routine maintenance") invites arguments. Spell out tasks, quantities, and deliverables. An explicit exclusions list is just as important as the inclusions, because it defines the edge of what the flat fee buys.
3. Visit schedule & frequency
State how often you visit and roughly when, along with how visits get scheduled.
Provider will perform [NUMBER] scheduled visits per [year/quarter/month], targeted for [e.g., spring and fall]. Provider will contact Customer at least [X] days in advance to arrange each visit. Customer agrees to provide safe access to the property and equipment.
What to put here and why: Frequency is the backbone of a recurring agreement. Adding an access clause matters because a missed or blocked visit is a common source of friction. If exact dates are impractical, commit to a window plus advance notice.
4. Term & renewal
Define the length and whether it renews automatically.
This Agreement begins on [START DATE] and continues for [12 months]. It will [automatically renew for successive [12-month] terms unless either party gives [30] days' written notice / expire at the end of the term unless renewed in writing].
What to put here and why: Choose one renewal model and be explicit. Auto-renewal keeps recurring revenue predictable but is regulated in some places, sometimes requiring specific notice or disclosure. That is one reason to have this clause reviewed locally.
5. Pricing & payment
State the amount, the billing cadence, what triggers extra charges, and late terms.
The fee is [$AMOUNT] per [year/quarter/month], billed [in advance / on completion of each visit] and due within [15] days of invoice. Parts, materials, and out-of-scope work are billed separately at [rate / current pricing]. Overdue balances may accrue [late fee / interest] as permitted by law.
What to put here and why: Separate the recurring plan fee from variable work so customers understand what the subscription does and does not cover. Tie any late fee to "as permitted by law," because caps on interest and fees vary by jurisdiction.
6. Response times / priority
For many customers this is the reason to sign. Promise only what you can deliver.
Agreement customers receive priority scheduling and a target response of [same day / next business day] for service requests during business hours. [Emergency / after-hours response is available at [rate], or is included under this plan.]
What to put here and why: Response commitments differentiate a plan from one-off service. Use "target" language unless you are prepared to guarantee a hard window, and define business hours so "same day" is unambiguous.
7. Cancellation
Explain how either party can end the agreement early and what happens to prepaid amounts.
Either party may cancel with [30] days' written notice. If Customer prepaid, Provider will refund the unused portion on a [pro-rata] basis, less any completed visits and outstanding balances. Provider may suspend or cancel for non-payment after [notice].
What to put here and why: A clear exit protects both sides and builds trust. Spell out refund handling for prepaid plans; silence here tends to cause the worst disputes.
8. Signatures
A signature block turns a proposal into a binding agreement.
Provider: _______________ Date: ______
Customer: _______________ Date: ______
What to put here and why: Both parties should sign and date. Electronic signatures are widely accepted, but requirements differ, so confirm what is valid where you operate.
Adapting by trade
The skeleton stays the same; the scope language changes.
- HVAC and plumbing: Emphasize seasonal timing, covered systems, and a clear parts/labor split in Sections 2 and 5.
- Landscaping and pest control: Frequency (Section 3) does most of the work; define per-visit tasks and seasonal adjustments.
- Electrical, roofing, and specialty trades: Tighten exclusions (Section 2) around permits, code upgrades, and safety-driven work that should never be bundled into a flat fee.
Common mistakes
- Fuzzy scope. "Maintenance as needed" is unenforceable and unprofitable. Be specific.
- No exclusions list. Customers assume everything is covered unless you say otherwise.
- Silent renewal terms. Not stating how the agreement ends leads to awkward, sometimes non-compliant, auto-renewals.
- Over-promising response times. A guarantee you cannot meet erodes trust faster than no guarantee at all.
- Skipping the legal review. Copying a template verbatim without checking local rules is the biggest risk of all.
FAQ
Is a service agreement legally binding?
Generally, a signed agreement with clear terms and mutual consideration is binding, but enforceability depends on your jurisdiction and how the terms are written. This is why a local review matters.
How is this different from a maintenance plan?
The terms overlap and are often used interchangeably. In practice a maintenance plan usually refers to the recurring service package, while the service agreement is the contract that governs it. See the comparison linked below.
Can I charge upfront for the whole year?
Many businesses do, which is why the cancellation section should explain how prepaid amounts are refunded. Some jurisdictions regulate prepayment and refunds, so confirm before you rely on it.
Next steps
Adapt the sections above to your trade, then have the wording reviewed locally before you use it. To go deeper on how plans work and how to price them, read our guide to service agreements and maintenance plans, the service agreement vs. maintenance plan comparison, and the field-service pricing FAQ.
This template is provided for general educational purposes only and is not legal advice; consult a qualified attorney in your jurisdiction before using any contract with customers.