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Free Supply of services agreement Template for New Zealand

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Key Requirements PROMPT example:

Supply of services agreement

I need a supply of services agreement for a freelance graphic designer who will provide design services on a project-by-project basis. The agreement should include payment terms, intellectual property rights, confidentiality clauses, and a termination clause with a 30-day notice period.

What is a Supply of services agreement?

A Supply of services agreement sets out the terms when one party provides professional services to another in New Zealand. It covers key details like the scope of work, payment terms, timeframes, and quality standards that both parties must follow. Common in sectors like IT consulting, business advisory, and professional services, these agreements protect both the service provider and their clients.

The agreement helps prevent disputes by clearly outlining each party's obligations, including confidentiality requirements and intellectual property rights. Under NZ contract law, these agreements need specific elements to be legally binding, such as clear consideration (payment terms) and the capacity of both parties to enter into the contract. They often include provisions for termination, liability limits, and dispute resolution processes.

When should you use a Supply of services agreement?

Use a Supply of services agreement any time you provide or receive ongoing professional services in New Zealand. This includes scenarios like hiring IT consultants, engaging marketing agencies, bringing in business advisors, or contracting professional services firms. The agreement becomes essential when the work involves regular deliverables, specific quality standards, or access to sensitive information.

The timing matters - put this agreement in place before work begins, especially for projects lasting more than a few weeks or involving significant fees. It's particularly important when dealing with intellectual property creation, when multiple staff members will be involved, or when services directly impact your business operations. This protects both parties and creates clear expectations from day one.

What are the different types of Supply of services agreement?

  • Electricity Supply Agreement: Specialized version for utility services with specific provisions for power supply, metering, and compliance with electricity market regulations.
  • Supply And Service Agreement: Comprehensive agreement combining both product supply and ongoing services, commonly used when providers deliver equipment or software along with maintenance, support, or implementation services.
  • Project-Based Services: Shorter-term agreements with defined deliverables and completion dates, often used for consulting or development work.
  • Retainer Services: Continuous service arrangements with regular payment schedules and service level commitments, popular in professional services.

Who should typically use a Supply of services agreement?

  • Service Providers: Professional consultants, IT companies, agencies, and contractors who deliver specified services. They draft or review agreements to protect their interests and clarify deliverables.
  • Client Organizations: Businesses or entities receiving services who need to ensure quality, timeline commitments, and value for money. Often involve their procurement teams in negotiations.
  • Legal Advisors: In-house counsel or external lawyers who review and refine agreement terms, ensuring compliance with NZ law and protecting their client's interests.
  • Project Managers: Oversee service delivery and ensure both parties meet their contractual obligations. Often the main point of contact for operational matters.

How do you write a Supply of services agreement?

  • Service Details: List specific deliverables, timelines, and quality standards expected. Our platform helps structure these clearly in legally sound terms.
  • Company Information: Gather full legal names, registration numbers, and contact details for both service provider and client.
  • Payment Terms: Document fees, payment schedules, and any performance-linked payments or milestones.
  • Key Personnel: Identify who will manage the service delivery and who has authority to make decisions.
  • Risk Management: Consider insurance requirements, liability limits, and confidentiality needs specific to your industry.
  • Performance Metrics: Define how service quality will be measured and what constitutes acceptable delivery.

What should be included in a Supply of services agreement?

  • Parties and Definitions: Full legal names, contact details, and clear definitions of key terms used throughout the agreement.
  • Service Description: Detailed scope of services, deliverables, and quality standards that must be met.
  • Payment Terms: Fee structure, payment schedule, GST requirements, and invoicing procedures under NZ tax law.
  • Duration and Termination: Contract period, renewal options, and conditions for ending the agreement.
  • Confidentiality: Protection of sensitive information, aligned with NZ Privacy Act requirements.
  • Liability and Indemnity: Risk allocation, insurance requirements, and limitation of liability clauses.
  • Dispute Resolution: Process for handling disagreements under NZ jurisdiction.

What's the difference between a Supply of services agreement and a Supply of goods agreement?

A Supply of services agreement differs significantly from a Supply of goods agreement in several key aspects. While both are commercial contracts, they serve distinct purposes and contain different legal protections under New Zealand law.

  • Nature of Exchange: Services agreements focus on ongoing work, expertise, or professional activities, while goods agreements deal with tangible products and their transfer of ownership.
  • Performance Metrics: Service agreements typically include quality standards and service levels, whereas goods agreements focus on product specifications and delivery terms.
  • Duration: Service agreements often cover ongoing relationships with multiple deliverables, while goods agreements might be one-time or periodic product transfers.
  • Legal Obligations: Service agreements emphasize professional conduct, confidentiality, and intellectual property rights, while goods agreements focus on warranties, product liability, and title transfer.

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