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<h2 class="wp-block-heading"><strong>Definition of a service contract</strong></h2>
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<p>A contract for pecuniary interest concluded in writing between a service provider and a contracting authority, i.e. client.</p>
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<h2 class="wp-block-heading"><strong>Definition of a service</strong></h2>
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<p>A service is a work that is not part of an organization’s core business, i.e. its main function, but which needs to be provided to carry out the business.</p>
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<h2 class="wp-block-heading"><strong>Special nature of service contracts</strong></h2>
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<h3 class="wp-block-heading"><strong>Significant factors which differentiate service contracts from other types of contracts</strong></h3>
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<p>1. Defining the requirements can be more complex.</p>
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<p>2. Less easy to measure delivery in a service contract.</p>
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<p>3. The contract may extend over a longer period.</p>
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<p>4. Generally involves closer contact between customer and service provider.</p>
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<p>5. The service provided may interface with other services.</p>
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<h2 class="wp-block-heading"><strong>Drawing up the specifications</strong></h2>
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<p>The specification should define;</p>
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<p>1. The scope of work, why it is required, and where it is to be done.</p>
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<p>2. The output required.</p>
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<p>3. Standards to be met.</p>
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<p>4. Response times.</p>
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<p>5. When and how the work is to be measured.</p>
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<p>6. Equipment, facilities, and materials to be supplied by the service provider and by the client.</p>
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<p>7. Identification of any key events or activity and any approvals required before the next activity commences.</p>
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<p>8. Completion dates.</p>
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<p>9. The service provider’s continuing responsibilities on completion of the work.</p>
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<h2 class="wp-block-heading"><strong>Specifying outputs</strong></h2>
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<p>1. Completeness – the main task and any ancillary services.</p>
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<p>2. Clarity – ensuring that terminology and the service provider’s responsibilities are clearly defined.</p>
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<p>3. Measurability – measurable outputs and measurement as objective as possible.</p>
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<p>4. Objectives – why the service is performed.</p>
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<p>5. Interfaces – responsibilities of the service receiver and provider.</p>
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<p>6. Resource input – experience, education, qualifications, and other skills and equipment of defined standards and compatibility.</p>
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<h2 class="wp-block-heading"><strong>Quality Plans</strong></h2>
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<p>Should include information on;</p>
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<p>1. How the service will be provided.</p>
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<p>2. The procedures and controls the service provider will use.</p>
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<p>3. The people involved in delivering the service.</p>
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<p>4. The quality of materials to be used.</p>
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<p>5. How the contract will be monitored by the supplier.</p>
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<p>6. What customer satisfaction measures will be used?</p>
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<p>7. How complaints of poor services will be handled.</p>
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<p>8. How problems will be resolved.</p>
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<p>9. How the contractor will be penalized for non-compliance.</p>
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<h2 class="wp-block-heading"><strong>Contractual matters</strong></h2>
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<p>Contract strategy should define;</p>
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<p>1. The type of contract to be used.</p>
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<p>2. The number of contractors to be used to provide the service.</p>
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<p>3. What contracting procedures will be used?</p>
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<p>4. A procurement plan defining actions and individual responsibilities.</p>
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<p>5. Key staff involved.</p>
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<p>6. The length of the contract and options for extension.</p>
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<h2 class="wp-block-heading"><strong>SAFETY</strong></h2>
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<p>1. Requires the contractor to find out and comply with all relevant laws and rules relating to safety.</p>
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<p>2. The contractor must also ensure observance by all relevant employees and sub-contractors,</p>
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<h2 class="wp-block-heading"><strong>DEFAULT</strong></h2>
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<p>In the case of unsatisfactory performance by the contractor, the client can use another contractor to carry out the work and recover any additional cost from the original contractor.</p>
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