Service Contracts
Patrick W Gilmore
patrick at ianai.net
Thu Dec 9 19:54:27 UTC 2004
On Dec 9, 2004, at 2:23 PM, Sam (Walter) Gailey wrote:
> Hopefully this is not too off-topic; I'm looking for guidance in
> penalty clauses in service contract agreements. I run a small WAN for
> a town. We have an internet T-1, an internal frame T-1, five
> point-to-point T-1's and a small smattering of PVC's and low-bandwidth
> frame lines. I know we're small change, but I've had lines down for as
> long as four days and gotten little more than an apology from our
> current provider. Our contract expires soon and I'd like the next one
> to have a few more teeth, as in "if you're down for X hours you owe
> the customer a credit of X dollars."
>
> Is this common practice? What are typical penalty clauses like? Any
> guidance would be welcome, off-list is fine, I will summarize if
> people are interested.
SLA credits are usually horrifically low if you accept the service
provider's standard contract. Ask for something with more teeth and
you might get it. I like 1 day of credit for every hour of downtime.
(For four days of downtime, you'd get the month free - they usually cap
it at 1 month credit per month.)
But I'm mean to my service providers. :)
--
TTFN,
patrick
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