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Procurement Service Level Agreement Template for England and Wales

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Key Requirements PROMPT example:

Procurement Service Level Agreement

"I need a Procurement Service Level Agreement for a manufacturing company outsourcing its procurement function to a third-party provider, with specific KPIs for cost savings and supplier management, starting from March 2025."

Document background
The Procurement Service Level Agreement is essential for organizations outsourcing or formalizing their procurement functions. This document, governed by English and Welsh law, provides a comprehensive framework for managing procurement services, including detailed service specifications, performance metrics, governance structures, and compliance requirements. It is particularly crucial for organizations seeking to optimize their procurement operations, ensure transparency, and maintain regulatory compliance while managing supplier relationships effectively. The agreement typically encompasses various procurement activities, from strategic sourcing to day-to-day purchasing operations.
Suggested Sections

1. Parties: Identification and details of the contracting parties - service provider and client

2. Background: Context of the agreement and high-level description of services

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of services to be provided

5. Service Levels: Performance metrics, KPIs, and measurement criteria

6. Charges and Payment: Pricing, payment terms, and invoicing procedures

7. Contract Management: Governance structure, reporting requirements, and review processes

8. Term and Termination: Duration, renewal terms, and termination provisions

Optional Sections

1. TUPE Provisions: Required when service provision may involve transfer of employees

2. Business Continuity: Disaster recovery and business continuity requirements

3. Step-in Rights: Client's right to take over services in specific circumstances

4. Parent Company Guarantee: Additional financial security from provider's parent company

Suggested Schedules

1. Service Description: Detailed specification of services and deliverables

2. Service Levels and KPIs: Detailed performance metrics and measurement methodology

3. Pricing and Payment Schedule: Detailed pricing structure, rates, and payment terms

4. Change Control Procedure: Process for managing changes to services or agreement

5. Data Protection Requirements: Specific data handling and protection obligations

6. Exit Management Plan: Procedures for contract termination and service transition

7. Business Continuity Plan: Detailed disaster recovery and continuity procedures

8. Governance Framework: Detailed management structure and escalation procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions









































Clauses









































Relevant Industries
Relevant Teams
Relevant Roles
Industries

Contract Rights of Third Parties Act 1999: Core contract law governing the rights of third parties to enforce terms of a contract they are not directly party to

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing the right to claim interest on late commercial payments and compensation for debt recovery costs

Unfair Contract Terms Act 1977: Regulates unfair terms in contracts, particularly exclusion and limitation clauses

Supply of Goods and Services Act 1982: Sets out implied terms in contracts for the supply of goods and services

Public Contracts Regulations 2015: Main regulations governing public procurement procedures in England and Wales

Public Procurement (Amendment etc.) (EU Exit) Regulations 2020: Post-Brexit amendments to public procurement regulations

Utilities Contracts Regulations 2016: Specific regulations for procurement in the utilities sector

UK General Data Protection Regulation (UK GDPR): Primary data protection legislation governing the processing of personal data

Data Protection Act 2018: UK's implementation of data protection standards and supplementary provisions to UK GDPR

Privacy and Electronic Communications Regulations (PECR): Specific rules for privacy in electronic communications

Transfer of Undertakings (Protection of Employment) Regulations 2006: Protects employees' rights when business ownership or service provision changes hands

Agency Workers Regulations 2010: Ensures equal treatment for agency workers compared to permanent employees

Modern Slavery Act 2015: Requires businesses to ensure their supply chains are free from slavery and human trafficking

Bribery Act 2010: Criminal law relating to bribery and corruption in business practices

Competition Act 1998: Prohibits anti-competitive behavior and abuse of dominant market position

Environment Act 2021: Sets out environmental principles and requirements for business operations

Climate Change Act 2008: Framework for reducing greenhouse gas emissions and adapting to climate change

Health and Safety at Work etc. Act 1974: Primary legislation for workplace health and safety requirements

Management of Health and Safety at Work Regulations 1999: Specific requirements for managing health and safety in the workplace

Electronic Communications Act 2000: Legal framework for electronic signatures and electronic commerce

Electronic Commerce (EC Directive) Regulations 2002: Regulations governing electronic commerce and online business activities

Consumer Rights Act 2015: Consolidates consumer protection law and rights in relation to goods and services

Consumer Protection from Unfair Trading Regulations 2008: Prohibits unfair commercial practices between traders and consumers

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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