The MSA & SOW contract format is powerful; and we know that many Kansas City startups, freelancers, and small business use MSAs and SOWs because they are efficient.
Below is a recap on:
1. What they are;
2. Why you should care; and
3. Best practices you might implement.
MSA stands for Master Service Agreement, while SOW stands for Statement of Work.
The idea is that you use one master agreement to establish the legal terms between the parties and then one or more statements of work to agree on project-specific services and payment terms. Each SOW is then attached to and governed by the MSA.
There are many benefits to using MSAs and SOWs, and most of them revolve around efficiency.
Here are some of the key advantages:
MSAs and SOWs make things easy. But only if you do things right.
At the outset, you should create a good MSA/SOW template for your business. You can create this yourself, get help from an attorney, or possibly purchase one from a trade association or other resource (we even have some in our Contract Shop).
From there, here are some tips you might consider for each of the documents:
(This article is general in nature and is not legal advice.)
How to draft and negotiate contracts to create better deals.
What is a Contract?
Essential Contract Terms
Reviewing & Negotiating