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
Electrotechnical excellence, now open for entries.
Net zero electricity grids BSRIA guide NZG 5/2024
Outlining the changes needed to transition to net zero.
CIOB Global Student Challenge 2024
Universitas Indonesia wins for second year running.
New project and cultural district described in detail.
The nature of EPCs, crticism and inaccuracies.
History, issues and redesign.
From waste recycling to energy performance the hierchy.
An introduction to WERCS and WEEE responsibilities
Dealing with 2 million tonnes of waste equipment a year.
Global BACS Market: analytics and optimisation
A BSRIA glance at building automation and control systems.
What it is and how to use it.
Types of insulating plaster by binder and insulant.
Investors in People: CIOB achieves gold
Reflecting a commitment to employees and members.
Scratching beneath the surface; a guide to selection.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.
For the World Autism Awareness Month of April.