Contract types
Know which document carries the money
Vendor paperwork comes in many shapes. Each page below says what a document commits, what to record from it and how it relates to the others.
Quorum Advisory and Perigee Cloud
Master Services Agreement
Framework, not counted in spend
Statement of Work
Commitment, $55,700, counted in spend
Statement of Work
Commitment, $25,500, counted in spend
Data Processing Agreement
Ancillary, not counted in spend
Structural role
Framework
Sets terms, commits no money. Excluded from spend totals.
- Master services agreementA master services agreement sets the legal terms for future work with a services vendor. It usually commits no money; the statements of work signed under it do.
- Framework agreementA framework agreement, common in the public sector and larger European buyers, sets terms and prices for call-offs. The call-offs commit the money.
Structural role
Commitment
Carries the money and the dates. The only role counted in spend.
- Statement of workA statement of work defines one piece of work under a master services agreement: scope, price, dates and how it is charged. It is where the money is.
- Master subscription agreementA master subscription agreement is the software equivalent of a master services agreement. With order forms beneath it, it sets terms; on its own, with a stated fee, it can be the commitment itself.
- Order formAn order form is the commercial commitment under a subscription agreement: what you bought, how many, at what price and for how long.
- Click-through termsSelf-serve software is bought by accepting online terms. The confirmation email is often the only record, and it is a contract in its own right.
- Purchase orderA purchase order is the buyer's commitment to pay for specific goods or services. Sometimes it is the only commercial document there is.
- Licence agreementA licence agreement grants the right to use software, for a term or perpetually. Perpetual licences often come with a separate annual support fee that renews.
- Engagement letterLaw firms, auditors, consultants and agencies often work under an engagement letter: scope, fees and terms in one document.
- Renewal noticeA renewal notice confirms that an agreement continues for another term, sometimes at a new price. It replaces the previous term in the renewal chain.
- Reseller agreementWhen you buy software through a reseller, your contract is with the reseller, not the maker. Renewal, price and support terms follow the reseller's paper.
Structural role
Amendment
Modifies a parent agreement: price, seats, or term.
Structural role
Ancillary
No commercial terms. NDA, DPA, BAA, SLA.