You want to avoid conflict as much as possible with clients.
A Master Service Agreement does just that — it allows both parties to agree on terms and problem-solving strategies before conflict arises.
But how do you know if you need one?
This guide for your construction business answers the ...
… of Master Service Agreements for construction.
Every construction project involves a lot of details. When your work requires a Master Service Agreement, you want to be sure all your bases are covered.
Wouldn’t it be amazing if there was a way to easily store these important client documents?
Flexbase can help you not only store important documents, but the app can also help with any expense and cash flow needs.
In addition to storing your documents, Flexbase makes construction administration easier by:
Flexbase has everything you need to successfully run your construction business — and it’s all in one place and is easy to use.
A master service agreement (MSA) sets terms between two parties — a contractor and a client. The parties agree to most of the terms that will govern all future construction work and agreements.
This construction agreement also establishes protocol regarding things such as:
The purpose of a master service agreement is to make the contract process faster.
With an MSA in place, the contractor can react to a customer’s needs quickly, order parts without delay, and begin work right away.
By clearly outlining the responsibilities of each company and what the companies will accomplish together, both parties enter the agreement understanding the expectations of each side.
This allows each party to honor their side of the agreement and helps to avoid any potential issues.
The goals of a Master Service Agreement in construction is to spell out:
Master Service agreements allow contractors to quickly get to work on a project.
MSAs can cover a variety of potential projects, and are ideal for:
For a construction company, a master service agreement governs all future transactions and helps parties to:
Creating a contract is often a lengthy and expensive process.
A Master Service Agreement allows both parties to come to a quicker deal, agreeing to the main points.
It’s possible to complete an MSA in a few weeks (or even a few days), which is significantly faster than most contract negotiations.
A Master Service Agreement puts an agreement in place for both parties.
If a dispute happens, the agreement will decide who’s at fault. It’s easy to check an MSA for what was previously agreed upon. This makes the two parties less likely to bring a dispute to court — saving money and time.
Once you’ve created a Master Service Agreement, it’s easy to use it as a template for all future negotiations. Each deal has its specifications, but you’ll have a blueprint that allows parties to focus on important details of the terms.
Once a company goes through the MSA negotiation process, it will understand what kind of concerns or issues may come up. The company will know what the problems are for the future and be able to address them quickly when it drafts the next MSA.
Key components of a Master Service Agreement (MSA) can include sections and services such as:
To help determine these components, it’s helpful to discuss these questions:
The Master Service Agreement normally contains provisions limiting the liability of the service provider — and in some cases, the liability of the customer.
The MSA can contain a limitation on:
Both of these limitations vary widely and are often negotiated heavily.
The scope of work (SOW) can be separate or included in your Master Service Agreement. Construction details of your services and pricing are well-defined.
The SOW specifies how much your client is paying you for:
If you add or change your services or their scope, it’s the SOW document that should be changed and signed by both parties — rather than the whole Master Service Agreement.
The contract termination component of the Master Service Agreement details the procedures through which either of the parties may end the contractual relationship.
This clause is important in deciding which party has to pay damages for breaking a contract.
There are two main termination types:
Nearly all Master Service Agreements contain a confidentiality provision. In this, both parties agree they won’t share any secrets of the company with outside parties.
The provisions are typically provided along with data protection and data security provisions if certain types of information will be disclosed and processed as part of the working relationship. For example, personally identifiable information (PII).
Even with the most carefully written MSA, disputes may still arise. Being aware of the potential disputes will help you more easily handle them, should they come up.
The most common disputes that arise include:
The more you can plan for any potential conflicts in your Master Service Agreement, the less likely you’ll have conflict issues down in the future.
Use Flexbase for all invoicing needs of your MSA as well as for free storage of MSAs and other documents. Never have to worry about invoicing, cash flow, or being stuck with major disputes or issues when storing important documents within the Flexbase app.
In the construction industry, keeping your project on schedule is critical. A master service agreement helps to speed along the contract process and ensure that all parties are on the same page.
We have integrated all your construction documents (including your master service agreements and invoicing) into one easy-to-use free app.
In addition to storing all your construction documents and contracts, Flexbase also:
A subscription to Flexbase gives you access to early payment incentives — and our friendly payment reminders mean that you can get paid up to 63% faster.
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