A service level agreement (SLA) sets out which performance a supplier guarantees and what a customer can expect when problems arise. A good SLA contains measurable standards for availability, response times and support, plus agreements on what happens if those standards aren’t met. Below you’ll learn how to build such a document, from scope to signing.
What belongs in an SLA?
An SLA is not a legal contract in itself, but an addendum that makes the service concrete. The following elements must not be missing:
- Scope: which services fall under the agreements, such as web hosting, email or domain management.
- Availability: the uptime percentage being aimed for and how it is measured.
- Response and resolution times: within what time support responds to a report, and within what time a problem is resolved.
- Support channels: through which channels customers can get in touch (ticket, phone, chat) and at what times.
- Escalation procedure: who is called in if a problem isn’t resolved within the agreed time.
- Compensation scheme: what the customer receives (for example a discount) if the agreed standards aren’t met.
- Maintenance and exceptions: scheduled maintenance and force majeure usually fall outside the uptime calculation.
Step-by-step plan: drafting an SLA
Determine the scope
Describe exactly which services fall under the SLA, such as web hosting, email or a domain name. An unclear scope leads to discussion as soon as something goes wrong.
Set availability standards
Establish which uptime percentage is targeted and over what period this is measured (monthly or annually).
Define response and resolution times
Differentiate between priorities: a server that’s offline requires a faster response than a question about settings.
Describe the support channels
Explicitly state through which channels customers can get support and at what times these are available.
Establish escalation and compensation
Describe what happens if standards aren’t met: who is called in and what compensation applies.
Have the SLA reviewed and sign it
Review the document together with the other party for feasibility and only sign once both sides understand the agreements.
Making measurable agreements
An SLA only has value if the agreements are measurable. Avoid vague terms like “quickly” or “as soon as possible” and instead choose concrete time units, for example a response time in minutes or hours per priority level. Also make sure it’s clear how this is measured: via monitoring tools, ticket timestamps or log files. In addition, agree on who is responsible for tracking and reporting these figures, so no dispute arises over who is right.
Keep in mind that some elements fall outside the supplier’s sphere of influence, such as internet outages at the customer’s own location or DNS changes at another party. Mention these exceptions explicitly, so the SLA remains realistic.
Common mistakes
When drafting an SLA, the same pitfalls often occur:
- Overly vague wording, making it impossible to verify whether the agreement was met.
- No distinction in priority, so a minor question gets the same handling time as a critical outage.
- Missing compensation scheme, meaning the SLA has no real teeth.
- Not accounting for scheduled maintenance, which can lead to unjustified disputes about uptime.
- Never evaluating the document, while services and needs change over time.
An SLA is relevant for a wide range of services, from web hosting to business email. If in doubt, check the terms in your provider’s knowledge base, for example via the support page, before signing an SLA.
Frequently asked questions
Is an SLA mandatory for hosting?
No, an SLA is not a legal requirement, but it is common in business services because it provides clarity on what you can expect.
What is the difference between an SLA and terms and conditions?
Terms and conditions govern legal matters such as liability and payment. An SLA specifically concerns performance levels, such as availability and response times.
How often should an SLA be reviewed?
A good rule of thumb is to evaluate the SLA at least annually, or sooner if the service or needs change.
Can an SLA differ per service?
Yes, it’s common to set separate standards for different services, such as hosting and email, within the same document.
What happens if the supplier fails to meet the SLA?
This depends on the agreed compensation scheme, for example a discount on the invoice or an extension of the service period.
Conclusion
A good SLA contains a clear scope, measurable standards for availability and response times, clear support channels and concrete agreements on escalation and compensation. By avoiding vague language and regularly reviewing the document, you prevent disputes and know exactly what to expect as a customer.