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MSA
Understanding a Master Service Agreement

What is an MSA?

February 28, 2018

What is an msa? Master Service Agreement

A master service agreement, also referred to as an MSA, is a contract agreed upon by parties that set forth the terms and conditions of any future work or services performed.

Benefits of Having an MSA

Having an MSA in place with your customers is beneficial. It allows you to get to work faster by preventing the lengthy process of negotiating terms and conditions each time new work is awarded. It helps establish and maintain a business relationship between parties that can result in consistent work.

Common Sections of an MSA

MSA’s are divided into many sections. It is important that you understand any master service agreement you receive from your customers. Always seek legal counsel prior to signing if there are parts of the agreement you do not understand. Below are some of the common sections of an MSA:

  • Term: How long is the agreement valid?
  • Insurance Requirements: What are the insurance coverages required for the services performed?
  • Liens/Claims: Lists any potentials for any offsets or withholding of payment.
  • Payment/Compensation: Where will you find net payment terms as well as what is required for payment?
  • Notices: Will list where any notices should be sent for either party?
  • Severability: If any part of the contract is held to be unenforceable, the remainder of the contract should still apply.
  • Confidentiality: Any information relating to work being complete should stay confidential between parties.
  • Governing Law: Both parties agree that a particular state law will be used to interpret the agreement.

We Can Help Review Your MSA

Companies that use our invoice factoring services get the added benefit of having our team look over their master service agreements. We’ve worked in several industries for more than 20 years and know what to look for to help make sure your company is protected.

If you’d like to learn more about invoice factoring, contact us via our website or call (800) 707-4845.

Author:  Jill S. & Megan L.

 
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