SLA

Also called Service level agreement, Service credits

A written promise about how well a service will be delivered, usually with consequences attached.

What it means

A service level agreement defines measurable standards for a service — response times, resolution times, availability — and what happens if they are not met, commonly service credits against the fee.

It sits alongside the contract and is often the part customers actually read.

Why it matters

It converts "good service" from an opinion into something both sides can check, which prevents most of the arguments that would otherwise happen.

For the supplier it is also a limit: an SLA that says four working hours is a defence against an expectation of twenty minutes.

What it looks like in practice

Define the clock precisely: when it starts, what counts as a response as opposed to a resolution, what hours it runs, and what pauses it while waiting for the customer.

Set levels you can meet on your worst week, not your best. An SLA is a floor.

Make sure service credits are the exclusive remedy if that is the intention, and cap them. Otherwise they sit on top of ordinary damages.

What to watch out for

Availability promises that ignore your own suppliers. You cannot offer better uptime than the infrastructure underneath you.

Uncapped credits, which can exceed the value of the contract.

Measuring what is easy rather than what the customer cares about. First response within an hour, followed by three weeks of silence, meets the letter of most SLAs.

Where to get proper advice

A commercial solicitor for the drafting, and your own operational data for the levels. Do not agree a level you have never measured.