An MSA (Master Services Agreement) is a framework contract that sets the standing legal and commercial terms between a client and a provider, such as payment terms, confidentiality, intellectual property, liability and termination. Individual projects are then added with shorter documents, usually statements of work.
Why it matters
Negotiating a full contract for every project is slow and costly. With an MSA in place, repeat work only needs a new SOW that lists scope, price and dates, while the underlying terms stay the same. Related documents such as a data processing agreement or an SLA are often attached to it.
Example
MSA (signed once)
|- SOW 1: website redesign
|- SOW 2: hosting and maintenance
'- DPA, SLA (attachments)If a clause in an SOW conflicts with the MSA, the agreement normally says which document takes precedence.
Common mistakes
- Failing to define the order of precedence between the MSA and its SOWs.
- Leaving the term, renewal and termination conditions unclear.
- Assuming standard templates fit every country; legal requirements vary, so rules and wording should be checked locally.
Related
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This page is general information written by our editorial team and updated when documentation changes. Servers and providers differ, so test changes safely first. See our editorial policy and disclaimer.