Internal contract
An internal contract is one that exists between a principal and an agent, i.e. the agent is legally appointed to act on its behalf. An external contract is one that exists between a principal and a third party, usually with the facilitation of an agent.
A service level agreement (SLA) is a common type of internal contract, which sets out what a supplier/service provider is required to provide to the client, and to what standard.
For more information, see Service level agreement.
Internal contracts can be prepared within an organisation, i.e. between teams or departments, or used for the outsourcing of services, such as facilities management, IT services, and so on.
Some of the elements typically required in an internal contract include:
- Name of the principal/client.
- Name of the agent/supplier.
- The product and/or services to be provided.
- Start date.
- Estimate of the elapsed time required. (For SLAs, this takes the form of a renewal date.)
- Price and the terms of payment.
- Client’s accountabilities, i.e. what the client must do/provide in order for the supplier to successfully perform the contract.
- Risks and assumptions about external dependencies that may hinder the performance of the contract.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
ECA, JIB and JTL back Fabian Society call to invest in skills for a stronger built environment workforce.
Women's Contributions to the Built Environment.
Calls for the delayed Circular Economy Strategy
Over 50 leading businesses, trade associations and professional bodies, including CIAT, and UKGBC sign open letter.
The future workforce: culture change and skill
Under the spotlight at UK Construction Week London.
A landmark moment for postmodern heritage.
A safe energy transition – ECA launches a new Charter
Practical policy actions to speed up low carbon adoption while maintaining installation safety and competency.
Frank Duffy: Researcher and Practitioner
Reflections on achievements and relevance to the wider research and practice communities.
The 2026 Compliance Landscape: Fire doors
Why 'Business as Usual' is a Liability.
Cutting construction carbon footprint by caring for soil
Is construction neglecting one of the planet’s most powerful carbon stores and one of our greatest natural climate allies.
ARCHITECTURE: How's it progressing?
Archiblogger posing questions of a historical and contextual nature.
The roofscape of Hampstead Garden Suburb
Residents, architects and roofers need to understand detailing.
Homes, landlords. tenants and the new housing standards
What will it all mean?
The Architectural Technology podcast: Where it's AT
Catch-up on the latest episodes.
Edmundson Apprentice of the Year award 2026
Entries now open for this Electrical Contractors' Association award.
Traditional blue-grey slate from one of the oldest and largest UK slate quarries down in Cornwall.
There are plenty of sources with the potential to be redeveloped.