What is the difference between a specification, a service level agreement and a contract?
A specification is a detailed description of the level of service or goods required. It should include a profile of your organisation, the services required, standards required, the tasks to be performed, the resources required and your expectations for liaison and monitoring. A service level agreement is an in-house agreement between two units in the same organisation for the supply of a service. This type of agreement has no legal status. Redress for disputes is to the Chief Executive or Board. A contract is an agreement between two legal persons for the supply of a service. A legal contract does not have to be written, but is advisable. A verbal contract can be legally binding. Redress for contractual disputes is to the courts.
