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
Recharging Electrical Skills in Wales
Step by step collaborative solutions.
Ireland budget announcement 2025
CIOB responds with positivity, criticism and clarity.
The continued ISG fall out, where to go?
Support for ISG contractors, companies and employees.
New HES national centre for traditional building retrofit
Announced as HES publishes survey results which reveal strong support for retrofit.
Retrofit of Buildings, a CIOB Technical Publication
Expected to become one of the largest activities in the global construction industry.
Scope determination appeals and the Building Safety Act
Process explained following release of appeals guidance.
The ECA industry focus video channel
Keeping update with the industry session by session.
Over 25 recorded informations sessions freely available.
AT Awards 2024 ceremony East London October 25th.
Revisiting the AT community at the 2023 awards evening.
The Community Housing Fund and built affordable homes
CLTN reviews the impact of the Fund and calls for extension.
The grading system of the Regulator for Social Housing
A background, an explanation and ten recent enforcements.
Construction, repair and maintenance. Book review.
Putting new life into a city with a 1900 year history.
BSRIA Briefing 2024: Sustainable Futures speakers
Redefining Retrofit for Net Zero Living 22 Nov.
Wall of support for post-Grenfell regulation of electricians
Call for a shake-up of the construction industry highlighted on radio.
Digital sustainability through future AEC tools
Bringing together industry and academia to meet challenges.