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Glossary
Field Service Glossary

What is Service Agreement?

A service agreement is a written contract between a service provider and a customer that defines the scope of work, pricing, schedule, liability terms, and cancellation policy for ongoing services. Service agreements protect both parties and create predictable revenue for the business. They are essential for recurring service relationships like lawn maintenance, snow removal, and pest control.

Example

A snow removal company signs a seasonal service agreement with a commercial property manager covering November through April, specifying a 2-inch trigger depth, salt application rates, and a monthly flat fee.

Related Terms

Service Level Agreement (SLA)Recurring JobsWork OrderAnnual Recurring Revenue (ARR)

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