Service Level Agreement

Service Level Agreement

When to Use This Skill

Use this skill when you need to:

• Draft a service level agreement (SLA) for clients or partners
• Define response times, uptime commitments, and quality standards
• Create penalty and credit structures for SLA breaches
• Formalize service expectations into a measurable agreement

DO NOT use this skill for full legal contracts (consult a lawyer), internal OKRs, or project scopes. This is for drafting the SLA portion of a business relationship.

Core Principle

AN SLA SETS THE FLOOR, NOT THE CEILING — IT DEFINES THE MINIMUM ACCEPTABLE SERVICE LEVEL SO BOTH PARTIES KNOW EXACTLY WHAT TO EXPECT AND WHAT HAPPENS WHEN EXPECTATIONS ARE NOT MET.

Phase 1: Define Terms

Establish the scope and context of the SLA.

Required Inputs

GATE: Confirm service scope before drafting the SLA.

Phase 2: Draft SLA

Write the service level agreement.

SLA Template

# Service Level Agreement

**Between:** [Your Business Name] ("Provider")
**And:** [Client Name] ("Client")
**Effective date:** [Date]
**Review date:** [Date — typically annual]

---

## 1. Service Description

[2-3 sentences describing the service covered by this SLA]

## 2. Service Availability (if applicable)

| Metric | Commitment |
|--------|-----------|
| Uptime target | [99.5% / 99.9%] monthly |
| Planned maintenance window | [Day/time — with 48-hour advance notice] |
| Excluded downtime | [Scheduled maintenance, force majeure, third-party outages] |

## 3. Response Times

| Priority | Description | Response Time | Resolution Target |
|----------|------------|--------------|-------------------|
| Critical | Service is down / major business impact | [1 hour] | [4 hours] |
| High | Feature impaired / significant impact | [4 hours] | [1 business day] |
| Medium | Minor issue / workaround available | [8 hours] | [3 business days] |
| Low | Question or enhancement request | [1 business day] | [5 business days] |

**Business hours:** [Hours and timezone]
**After-hours support:** [Available / Not available / Emergency only]

## 4. Performance Metrics

| Metric | Target | Measurement Method | Reporting Frequency |
|--------|--------|-------------------|-------------------|
| [Response time compliance] | [95%+] | [Support tool tracking] | [Monthly] |
| [Quality score] | [Target] | [Measurement method] | [Frequency] |
| [Deliverable timeliness] | [95%+] | [Project tool tracking] | [Monthly] |

## 5. Remedies and Credits

| SLA Breach | Credit / Remedy |
|-----------|----------------|
| Uptime below [X]% in a month | [X]% credit on monthly fee |
| Response time missed 3+ times in a month | [X]% credit or free service extension |
| Critical issue unresolved beyond [X] hours | [Escalation to senior team + credit] |

**Credit cap:** Total credits shall not exceed [X]% of monthly service fees.
**Credit process:** Client must request credit within [30] days of the breach.

## 6. Exclusions

This SLA does not apply to:
- Issues caused by client actions or third-party systems
- Force majeure events
- Scheduled maintenance (with advance notice)
- Features or services not covered by the agreement

## 7. Reporting

Provider will deliver a monthly service report including:
- Uptime percentage
- Response time compliance
- Open and resolved issues
- Any SLA breaches and remedies applied

## 8. Review and Amendment

This SLA will be reviewed [annually / at contract renewal]. Changes require written agreement from both parties.

---

**Provider signature:** _______________  Date: ___
**Client signature:** _______________  Date: ___

GATE: Present the SLA draft for review and negotiation.

Phase 3: Customize

Tailor the SLA to the specific service and relationship.

Service-Specific Additions

For SaaS / Digital Products:

• Data backup frequency and recovery time
• Security incident notification timeline
• API uptime and rate limits

For Retainer / Agency Services:

• Deliverable revision limits
• Communication response expectations
• Scope change process

For Managed Services:

• Proactive monitoring commitments
• Regular reporting cadence
• Escalation procedures with named contacts

Credit Structure Guidelines

• Credits should be meaningful enough to incentivize performance but not bankrupt the provider
• Typical range: 5-25% of monthly fee per breach type
• Cap total credits at 50-100% of one month's fees
• Always require the client to request credits (do not auto-apply)

Phase 4: Operationalize

Set up tracking and reporting to meet SLA commitments.

SLA Tracking Dashboard

## Monthly SLA Report — [Month]

| Metric | Target | Actual | Status |
|--------|--------|--------|--------|
| Uptime | [X]% | [X]% | Met / Missed |
| Avg response time (Critical) | [X hours] | [X hours] | Met / Missed |
| Deliverable timeliness | [X]% | [X]% | Met / Missed |

**Breaches this month:** [#]
**Credits owed:** $[X]
**Notes:** [Context for any misses]

Internal Alerts

Set up notifications before SLA breaches:

• Alert at 50% of response time window ("You have 2 hours left on this critical ticket")
• Alert when uptime approaches threshold
• Weekly review of SLA compliance

Anti-Patterns

• Promising what you cannot deliver — set targets you can consistently meet, then exceed them. Under-promise, over-deliver.
• No measurement system — an SLA without tracking is just words. You need data.
• Overly complex SLAs — a 10-page SLA for a $500/month retainer is overkill. Match complexity to the relationship.
• No exclusions — without clear exclusions, you are liable for third-party failures and acts of nature.
• Credits without caps — uncapped credits can bankrupt your business in a bad month. Always cap.

Recovery

• Client demands unrealistic SLA terms: Counter with data on industry standards. Offer a premium tier with tighter SLAs at a higher price.
• SLA was breached: Acknowledge it proactively, apply the credit before being asked, and explain what you are doing to prevent recurrence.
• User has no tracking tools: Start with a simple spreadsheet. Track response times manually until volume justifies a tool investment.
• Client never reads the SLA: Walk through the key commitments in a meeting. Highlight what they can expect and how to report issues.
• SLA is too expensive to fulfill: The SLA targets may be too aggressive, or the pricing does not account for the required service level. Adjust one or both.