Commercial Contracts

Master Services Agreement & SOW

The structure exists so the commercial terms are negotiated once and each engagement starts from a short document. It works only if the Statement of Work is confined to scope, deliverables, timing and price — the moment SOWs start amending liability caps and IP ownership, the master agreement stops meaning anything.

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Master Services Agreement

With Statement of Work

The structure exists so the commercial terms are negotiated once and each engagement starts from a short document. It works only if the Statement of Work is confined to scope, deliverables, timing and price — the moment SOWs start amending liability caps and IP ownership, the master agreement stops meaning anything.

ItemDetail
Supplier[NAME], UEN [UEN], of [ADDRESS]
Client[NAME], UEN [UEN], of [ADDRESS]
Date[DATE]
Term[2] years, renewing for successive [12]-month periods
Services[DESCRIBE THE CATEGORY — detail goes in each SOW]
IP in deliverables[Assigned to the Client / Licensed to the Client / Retained by the Supplier] — a commercial decision; specify
Liability cap[Fees paid in the preceding 12 months / S$ ______]
Payment terms[30] days from a valid invoice
GSTCharged in addition at the prevailing rate
Governing lawSingapore

1. Structure

1.1This agreement sets out the terms on which the Supplier provides services to the Client. It does not itself commit either party to any particular services.

1.2Each engagement is documented in a Statement of Work ("SOW") signed by both parties, incorporating these terms.

1.3Where an SOW conflicts with this agreement, this agreement prevails, except where the SOW expressly identifies the clause it varies and states that it is varying it, and is signed by an authorised signatory of each party.

1.4Client purchase order terms, supplier standard terms, and terms appearing on any portal or invoice do not apply.

2. Services

2.1The Supplier shall provide the services described in each SOW with reasonable skill and care, using appropriately qualified personnel, in accordance with applicable law and the timetable in the SOW.

2.2Time is [of the essence / not of the essence] in respect of the dates in an SOW. (A commercial decision — specify. Making every date of the essence is unusual and gives the Client a termination right for minor slippage.)

2.3The Supplier shall notify the Client promptly of anything likely to delay or prevent performance.

2.4The Supplier may subcontract only with the Client’s prior written consent, and remains fully responsible for any subcontractor.

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6 more pages in the Word file

This is page 1 of the Word document, exactly as it appears when you open it. Fields shown like THIS are placeholders for you to complete.

Notes for use

These notes accompany the template and explain the drafting choices, the compliance points and the mistakes most often made with this document. They appear as a final page in the Word file, intended to be deleted before the document is executed.

Keep commercial terms in the master, scope in the SOW

The structure earns its keep only if the SOW is confined to scope, deliverables, timing and price. Once SOWs start varying liability caps, IP ownership and payment terms, there are effectively several different contracts and nobody knows which applies. Clause 1.3 permits variation but requires it to be explicit and signed.

Write the out-of-scope list properly

The exclusions list in the SOW prevents more disputes than the inclusions list. Everyone agrees on what is being built; the argument is about what was assumed to come with it. Spend the time on that row.

State the assumptions

A fixed price rests on assumptions about data quality, access, decision speed and third party cooperation. When an assumption fails, the price should change. Assumptions recorded in the SOW convert that from an argument into a change request.

Use the change process

Scope creep is the most common cause of dispute in services engagements, and it happens through accumulated informal requests, none of which seemed worth a change order. Clause 4.2 makes unagreed work non-chargeable and non-obligatory, which protects both sides — but only if the process is actually used.

Assignment or licence is a real decision

A client paying bespoke rates usually expects to own the deliverables. A supplier building on its own product or methodology cannot assign it without destroying its business. Clause 6.4 is the usual reconciliation: assign what was made for this client, retain the tools and know-how. Decide it deliberately.

Watch open source in deliverables

Copyleft licences can require source disclosure of derived works, which is a serious problem for a client who thought they were buying proprietary software. Clause 6.5 requires identification and consent. Ask what is in the stack before, not after.

Client dependencies protect the supplier

Most delays in services engagements are caused by the client — late data, unavailable people, decisions that take weeks. Clause 3.2 and the SOW dependencies row convert that from a supplier failure into a documented extension.

Deemed acceptance keeps projects moving

Without a deemed acceptance mechanism, a client that never formally accepts can defer payment indefinitely while continuing to use the deliverable. Ten business days with written reasons for rejection is a reasonable balance.

The liability carve-outs are the real negotiation

A cap at twelve months’ fees is standard. Whether confidentiality breach, data protection breach and the IP indemnity sit inside or outside it is the point that matters, because those are the exposures that can dwarf the contract value. Clause 8.6 flags it rather than assuming an answer.

Exclude consequential loss, but understand what is excluded

Loss of profit and loss of business are excluded in Clause 8.4. For a client whose loss from a failed engagement would be almost entirely lost profit, that exclusion removes most of the meaningful remedy. Worth noticing before signing rather than after.

Check the insurance actually exists

Clause 8.8 requires evidence on request. Request it, and check the level against the liability cap and the nature of the work. A supplier with a professional indemnity limit below the cap cannot meet a claim at the cap.

GST is charged in addition

State it expressly, at 9 per cent, and require a valid tax invoice with the required particulars — the client needs it to claim input tax. Fees quoted without specifying GST treatment produce an argument at the first invoice.

Withholding tax on cross-border payments

Where the supplier is outside Singapore, withholding tax may apply to certain payments. Clause 5.8 requires the gross-up position to be settled. Silence means it is discovered at the first payment, usually by the supplier receiving less than expected.

Non-solicitation must be reasonable

Clause 10.1 restrains hiring the other side’s people. Restraints in Singapore are enforceable only so far as reasonable, and an over-broad one fails entirely rather than being narrowed. Six to twelve months, limited to people materially involved, is defensible; a blanket restriction on the whole organisation is not.

Current as of

Reflects Singapore law current as of {{DATE OF USE}}. The GST rate, tax invoice requirements, PDPA obligations, the enforceability of restraints and the Contracts (Rights of Third Parties) Act 2001 all change — have this agreement reviewed by a lawyer for any material engagement, and take advice on the IP and liability provisions specifically.

This is a ready-to-use template provided for convenience. Laws and requirements change, and every situation is different — please have it reviewed by a qualified professional (a lawyer, corporate secretary, or accountant as relevant) before you rely on it.