Writing an Administrative Services Agreement

06/09/2023

25 min

Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice

Introduction

The creation of administrative services agreements is an essential part of any business transaction, providing legal protection to the parties involved and ensuring that expectations are met. These documents outline the terms and conditions of the services being provided, the scope of work and compensation for those services, as well as a dispute resolution process in case differences arise.

Having an enforceable agreement in place helps to provide businesses with peace of mind that their interests are being taken care of, both legally and financially. Not only does this create clarity on what responsibilities each party has but it can also result in cost savings by preventing unnecessary services from being paid for.

At Genie AI we believe that everyone should have access to comprehensive legal protection when entering into a business relationship – no matter whether you’re a multinational corporation or just starting out. That’s why we’ve created the world’s largest open source legal template library with millions of datapoints teaching our AI platform what a market-standard administrative services agreement looks like. With our community template library, anyone can draft and customize high quality legal documents without paying for costly lawyer fees.

If you need help creating your own administrative service agreement then read on below for our step-by-step guidance on how to get started – plus information on how to access our free template library today!

Definitions

Legal Name: The full name of a person or company, as used for official purposes.

Verify: To confirm the accuracy of something by checking it against an authoritative source.

Scope: The range of activities or subject matter covered by an agreement.

Deliverable: An item, usually a product or service, that is due to be completed by an agreed-upon date.

Currency: A form of money that is used in a particular country.

Payment Schedule: A plan for when payments are due and what the payment amounts will be.

Invoicing: The process of issuing an invoice to a customer for payment.

Jurisdiction: The legal power to make and enforce laws or to decide legal disputes.

Mediation: A process in which a neutral third party helps two or more parties to reach an agreement.

Arbitration: A process of settling a dispute by referring it to a person or group chosen by the parties involved.

Liability: The legal responsibility for the consequences of one’s actions.

Indemnification: Protection from legal responsibility for the consequences of one’s actions.

Confidentiality: The practice of keeping information private.

Non-disclosure: A legal agreement that prevents one or both parties from disclosing certain information.

Duration: The length of time that something lasts.

Termination: The formal ending of something.

Renewal: The process of extending or continuing something.

Negotiation: A discussion between two or more parties to try and reach an agreement.

Identifying the parties involved in the agreement
Requesting and verifying identification information
Ensuring that all parties have the legal authority to enter into this agreement
Outlining the scope of services to be provided
Specifying the exact tasks to be completed
Describing the deliverables to be produced
Defining the terms of payment
Identifying the applicable currency
Establishing the payment schedule
Defining the process for invoicing
Establishing how disputes will be addressed
Identifying the applicable jurisdiction
Specifying how mediation or arbitration will be utilized
Discussing liability and indemnification provisions
Establishing the responsibility of each party
Defining the circumstances when liabilities may be incurred
Addressing confidentiality and non-disclosure considerations
Establishing what information may be shared
Describing the restrictions on the use of shared information
Determining the duration of the agreement
Establishing the start date
Setting the expiration date
Setting out any specific requirements for the services
Defining any licensing or certification requirements
Discussing any special access or equipment needs
Establishing termination and renewal procedures
Specifying the conditions for terminating the agreement
Outlining the process for renewing the agreement
Utilizing effective negotiation strategies
Identifying the goals and objectives of each party
Developing strategies for negotiating a mutually beneficial agreement

Get started

Identifying the parties involved in the agreement

Identify all parties involved in the agreement and make sure you have their full legal names, contact information and other pertinent information
If you are unsure of the legal name of any party involved, contact them to confirm
If any of the parties are businesses, verify the business name and legal structure
Check that all parties are of legal age and have the capacity to enter into a valid contract
Make sure that all parties involved are aware of and understand the terms of the agreement
When all parties involved have been identified and the necessary information has been gathered, you can move on to the next step.

Requesting and verifying identification information

Request and verify the identification information of all parties involved in the agreement, such as their legal name, address, business registration information, and contact details.
Ask for proof of identification, such as a driver’s license or other valid government-issued document.
Verify the information provided matches the records of the company or individual.
When you have successfully verified the identification information of all parties involved, you can check this step off your list and move on to the next step.

Ensuring that all parties have the legal authority to enter into this agreement

Verify that all parties involved in the agreement are legally capable of entering into a contract
Have all parties provide proof of identity, such as a driver’s license, passport, or other official identification
Make sure that all parties have authorization to enter into the agreement on behalf of their respective organizations
Ensure that all of the parties involved are of legal age in the jurisdiction where the contract is to be enforced
Confirm that all parties are in good standing with any applicable regulatory agencies or bodies

When all parties involved have provided proper identification and authorization to enter into the agreement, you can check this step off your list and move on to outlining the scope of services to be provided.

Outlining the scope of services to be provided

Research and define the services that will be provided
Describe the services in a clear and concise manner
Ensure that all parties involved understand the services to be provided
Add any additional services that may be required
Include any exclusions or limitations to the services being provided
Make sure all parties agree on the services to be provided
Once all parties agree on the services to be provided, add them to the agreement

You can check this off your list and move on to the next step when you have agreed on and included the services to be provided in the agreement.

Specifying the exact tasks to be completed

List out the specific tasks to be completed by the contractor
Provide detailed instructions on how each task should be completed
Ensure all tasks are defined clearly and concisely
Make sure the contractor has a full understanding of the tasks they are expected to complete
Once the contractor has a full understanding of the tasks to be completed, you can move on to the next step.

Describing the deliverables to be produced

Identify what exact deliverables will be produced
Determine the timeline for the deliverables
Decide on the format of the deliverables
Establish what quality of deliverables is expected
Outline any unique requirements for the deliverables
Specify how the deliverables will be delivered to the client
Describe how the deliverables will be accepted or rejected
Once all deliverables have been specified, add the details to the agreement
You can check this off your list when all deliverables have been defined in the agreement.

Defining the terms of payment

Determine the payment terms of the agreement, such as the frequency, payment amounts, due dates, etc.
List out specific details, such as the payment method, applicable taxes, and any other applicable fees.
Decide if there are any incentives or penalties that should be included in the agreement.
Include the payment terms in the final agreement.

You can check this step off your list when you have included the payment terms in the agreement.

Identifying the applicable currency

Determine the currency in which all payments will be made in the agreement.
Include the currency in the agreement in a clear and concise way.
List the country of origin of the currency, if applicable.
When you have included the applicable currency in the agreement, you can move on to the next step of establishing the payment schedule.

Establishing the payment schedule

Determine the frequency of payments: will they be made monthly, quarterly, or annually?
Set the due date of each payment: when will payments be due each month/quarter/year?
Agree on a payment method: will payments be made by check, wire transfer, or other method?
Outline any late fees: what is the penalty for late payments and when will it be applied?
Specify the payment terms: will payments be made in advance, arrears, or upon completion of services?

Once the payment schedule has been established, you can move on to the next step of defining the process for invoicing.

Defining the process for invoicing

Determine who will issue and process invoices (client or service provider)
Establish the frequency of invoicing (weekly, monthly, etc.)
Include a detailed description of the services provided in each invoice
Include any applicable taxes, fees and/or surcharges
Establish payment terms and due dates
Specify the payment methods accepted (check, credit card, etc.)
Agree on the process for handling late payments
Specify how and when the service provider will be notified of payment

You’ll know when this step is complete when all of the above items have been addressed and agreed upon by both parties.

Establishing how disputes will be addressed

• Define the procedures for resolving any potential disputes that may arise throughout the agreement.
• Clarify the dispute resolution process, such as arbitration, mediation or a combination of both.
• Describe the dispute resolution process in detail, including the timeline and the way in which parties will be notified of the dispute.
• Consider including a clause that requires the parties to use their best efforts to resolve the dispute before seeking legal action.
• Make sure to include the applicable jurisdiction for any legal action that may be necessary.

You can check this off your list once you have included all of the necessary information about the dispute resolution process and applicable jurisdiction.

Identifying the applicable jurisdiction

Research the governing law of the parties entering into the agreement
Check if any of the parties is subject to a governing law outside of their jurisdiction
Consider if any international or foreign laws are applicable
Document the jurisdiction in the agreement
Check off this step when the applicable jurisdiction is identified and documented in the agreement.

Specifying how mediation or arbitration will be utilized

Determine whether the parties prefer to use mediation or arbitration to resolve any disputes arising out of the agreement
Consider any applicable laws or regulations that may govern how disputes must be resolved
Include a clause in the agreement that establishes the process to be used and the applicable rules
Specify the location of the mediation or arbitration and the language to be used
Ensure that the clause limits the costs that each party can incur
When the clause has been drafted, review it to make sure it meets the needs of both parties
Once both parties have agreed to the clause, the step is complete and you can move on to the next step.

Discussing liability and indemnification provisions

Review the scope of services and liabilities each party will have
Draft provisions that address both parties’ liability and indemnification in relation to the services
Make sure to include the parties’ obligations regarding contractual warranties, representations, and indemnification
Consider the consequences of any breach or violation of the agreement
Outline the limitations of liability and indemnification
When you have finalized the provisions and both parties agree, you can check this off your list and move on to the next step.

Establishing the responsibility of each party

Identify what each party is responsible for in the agreement
Describe the responsibilities in detail, such as who will be responsible for providing services, who will be responsible for payment, and who will be responsible for any other tasks or duties
Specify any additional obligations of each party, such as any additional duties that one party may need to perform
Include any specific language that both parties agree to and sign on
Make sure to include key dates and deadlines

You can check this step off your list when both parties have agreed to the responsibilities and have included any additional obligations of each party, as well as any specific language that both parties have agreed to, signed on, and included any key dates and deadlines.

Defining the circumstances when liabilities may be incurred

Identify the potential liabilities that could be incurred by either or both parties
Consider what types of compensation, restitution or other remedies should be written into the agreement in the event of a breach of contract
Set out the circumstances under which liabilities may be incurred, as well as the conditions under which either party may be held liable
Include a clause outlining the extent to which each party is responsible for ensuring compliance with applicable laws and regulations
Outline the scope of liabilities of each party
Include a clause that defines when and how the liabilities may be amended
Once all the details have been agreed upon and included in the agreement, the parties can sign off on the document.

Once all of the above items have been addressed and included in the Administrative Services Agreement, the step can be considered completed and the parties can move on to the next step.

Addressing confidentiality and non-disclosure considerations

Review the information to be shared and determine if it should be considered confidential or not.
Establish and document the confidential information (if any) that will be shared and the terms of use for that information.
Draft a non-disclosure agreement to include in the administrative services agreement.
When the non-disclosure agreement is completed, review it to ensure that it is comprehensive, accurate, and legally binding.

When you have completed the above, you can move on to the next step - Establishing what information may be shared.

Establishing what information may be shared

Identify the types of information that may be shared between the parties
Specify the scope of information that may be shared
Ensure that the information shared is relevant to the agreement
Define the purpose of the information sharing
Outline the process for exchanging information
Determine the duration of the information exchange
Check if any legal or regulatory requirements must be taken into account

When you have identified the information that may be shared between the parties and have specified the scope, purpose and process of the information exchange, you can check this step off your list and move on to the next step.

Describing the restrictions on the use of shared information

Ensure that all parties to the agreement understand that the shared information cannot be used to the detriment of any other party
Establish how the shared information can be used, including any restrictions that apply, such as if the information can be shared with other parties, or if it is to be kept confidential
Clarify any limits on the use of the shared information, such as what is allowed, what is not allowed, and when the shared information can be used
Outline any additional restrictions or limitations that may apply, such as a prohibition on using the shared information for marketing or advertising purposes
Include a clause that outlines any penalties for breaching the restrictions on the use of shared information

When you can check this off your list and move on to the next step:

All restrictions and limitations on the use of shared information have been clearly established in the agreement.

Determining the duration of the agreement

Clarify how long the agreement will be in effect.
Discuss the parameters for the duration of the agreement and set a timeline.
Consider the option of including a renewal clause in the agreement to extend the duration.
Decide if the agreement should terminate upon completion of the services or upon meeting certain milestones.
Ensure that any termination clause is clearly outlined in the agreement.
When you have finalized the duration of the agreement, check it off your list and move on to the next step.

Establishing the start date

Work with the other party to determine a reasonable start date for the agreement
Consider factors such as when each party can be ready to begin working, any applicable holidays or other events that could affect the start date, and the duration of the agreement itself
Once the start date has been agreed upon, document this date in the agreement and have both parties sign the agreement to signify their agreement to the start date
You’ll know that you can move onto the next step of setting the expiration date when the start date has been agreed upon and documented in the agreement.

Setting the expiration date

Agree on a suitable expiration date for the administrative services agreement. This should be a date that is realistic and achievable for both parties.
Ensure that the date is clearly stated in the agreement.
Consider the possibility of extending the agreement beyond the expiration date, if needed.
Once the expiration date is set and stated in the agreement, you can move on to the next step, which is setting out any specific requirements for the services.

Setting out any specific requirements for the services

Identify the services that need to be provided and clearly define the responsibilities of each party
Include any specific qualifications or certifications the service provider may need to possess in order to provide the services
Define the expected outcomes of the services and how they will be measured
Specify any additional services that may be required and how they will be billed
Include any additional clauses or terms that may be necessary for the agreement
Once all of the services and specific requirements have been outlined, check off this step and move on to the next step.

Defining any licensing or certification requirements

Identify any licenses or certifications that are necessary for the performance of the services outlined in the agreement.
Include language in the agreement that requires your service provider to possess the necessary licenses and certifications.
Outline any penalties that may be imposed if the service provider fails to maintain the necessary licenses or certifications.
Have your service provider provide proof of the necessary licenses and certifications before commencing work.

Once you have identified and outlined the necessary licensing or certification requirements and have received proof from your service provider, you can move onto the next step.

Discussing any special access or equipment needs

Talk to the administrative services provider and confirm what special access or equipment they require to fulfill the agreement.
Ask the provider if they have any special requirements for equipment or software that will need to be purchased or leased.
Make sure that the administrative services provider has the necessary access to the necessary systems and networks.
Confirm that the provider has the ability to access the necessary data and systems.
Make sure the provider is aware of any potential security or privacy concerns related to the access or equipment required.
Once all special access and equipment needs have been covered and discussed, you can check this off your list and move on to the next step.

Establishing termination and renewal procedures

Identify the conditions that would cause either party to terminate the agreement
Outline the procedure for terminating the agreement, including notification requirements
Specify the notice period for both terminating the agreement and for renewing the agreement
Determine any limitations for either party when it comes to renewal and/or termination
Agree on the terms for renewal and termination of the agreement

Once the conditions for terminating the agreement and the terms for renewal are outlined, you can check this step off your list and move onto the next step of specifying the conditions for terminating the agreement.

Specifying the conditions for terminating the agreement

Decide and agree on the conditions for terminating the agreement
Identify the situations that would trigger the termination of the agreement
Specify the procedure for informing the other party of the agreement termination
Define the timeline for the termination process
Outline any applicable penalties or costs associated with terminating the agreement
When all the conditions of the agreement termination are specified, you can move on to the next step of Outlining the process for renewing the agreement.

Outlining the process for renewing the agreement

Discuss and agree on the timeline for renewing the agreement
Decide if the same terms and conditions will be applied to the renewal or if they need to be updated
Ensure that both parties understand the renewal process and the timelines involved
Develop a process to ensure that the agreement is renewed before the expiration date
Once the process is agreed upon and the timeline is established, both parties should sign the agreement to solidify the renewal process
When both parties have signed the agreement, you can check this step off the list and move on to the next step.

Utilizing effective negotiation strategies

• Prepare for negotiation by researching relevant information on the issue, including the other party’s interests, constraints, and previous positions.
• Have a clear understanding of what you are looking to achieve with the negotiation.
• Establish a set of negotiation goals before the process begins and stick to them.
• Communicate your goals and objectives openly and honestly.
• Listen to the other party’s points and take them into consideration.
• Utilize effective negotiation strategies such as the win-win approach, the concession strategy, and the BATNA strategy.
• Remain flexible and open to compromise.
• Reach an agreement that is mutually beneficial.

You will know that you have completed this step when you have successfully negotiated an administrative service agreement that meets the goals and objectives of both parties.

Identifying the goals and objectives of each party

Understand what is important to each party in the agreement
Ask questions to each party to identify the goals and objectives
Make a list of each party’s goals and objectives
Identify the common goals and objectives between the two parties
Make sure the goals and objectives of each party are clear and understood by both parties

When you can check this off your list:

When you have a clear understanding of the goals and objectives of each party in the agreement.

Developing strategies for negotiating a mutually beneficial agreement

Review all existing contracts and agreements between the parties, as well as any existing policies, procedures, or rules that may be relevant
Analyze the legal and business aspects of the deal, including the roles and responsibilities of each party
Make sure to include the terms and conditions in the agreement that are necessary for a successful negotiation and long-term relationship
Develop a strategy for negotiating a fair and mutually beneficial agreement
Outline a timeline for reaching an agreement
Identify any potential issues or obstacles that may arise during the negotiation process
Make sure to address any potential risks or liabilities that may be associated with the agreement

How you’ll know when you can check this off your list and move on to the next step:

Once you have reviewed the existing contracts and agreements, analyzed the legal and business aspects of the deal, developed a strategy for negotiating the agreement, outlined a timeline for reaching an agreement, and identified any potential issues or obstacles that may arise, you will be ready to move on to the next step.

FAQ

Q: What is the difference between a UK, USA, and EU Administrative Services Agreement?

Asked by John on April 14th 2022.
A: An Administrative Services Agreement (ASA) is a contract between two parties that outlines the services one party will provide to the other. The specifics of the agreement will vary depending on the jurisdiction in which it is created. In the UK, an ASA is known as a Service Level Agreement (SLA), while in the USA and EU it is usually referred to as an Administrative Services Agreement. Each jurisdiction has its own laws and regulations which govern ASAs, so it is important to be aware