MSP Contract Checklist: 25 Things to Check Before You Sign - MSP Guide Australia

Why Most MSP Contracts Are Written to Favor the MSP

MSP contracts are drafted by MSP lawyers. Their job is to protect the MSP, not you. This checklist flips the power dynamic — 25 non-negotiable items to review before signing anything. If you're already locked in, see our How to Leave an MSP guide for exit strategies.

The 25-Point MSP Contract Checklist

Pricing & Billing

1. Hourly rate transparency — Is the rate clearly stated? What about "after hours" rates?
2. Scope creep clause — What happens when work falls outside the defined scope?
3. Price escalation — Can they raise rates mid-contract? How much notice?
4. Invoicing terms — Net 30? Net 60? What are late payment penalties?
5. Hidden fees — Are there travel charges, after-hours surcharges, or minimum call-outs?

Service Levels

1. SLA definition — What response times are guaranteed? What are the penalties for missing them?
2. Uptime guarantee — Is 99.9% actually contractual or just marketing?
3. Escalation path — What happens when the SLA is breached?
4. Service credits — Do you get credits for missed SLAs or just "best efforts"?
5. Reporting — How often do you get performance reports?

Exit & Transition

1. Exit clause — How do you leave? What's the notice period?
2. Data return — What format? How long do they hold your data after exit?
3. Transition assistance — Will they help migrate to a new provider?
4. Non-compete clauses — Can they prevent you from hiring their staff?
5. IP ownership — Who owns custom scripts, configurations, and documentation?

Liability & Risk

1. Limitation of liability — What's the cap? Is it reasonable?
2. Indemnification — Who's responsible for data breaches?
3. Insurance — Do they have cyber insurance? Professional indemnity?
4. Force majeure — What qualifies as an "unavoidable accident"?
5. Governing law — Which state's laws apply?

Staffing & Quality

1. Named resources — Can you request specific engineers?
2. Staff turnover clause — What happens if your key engineer leaves?
3. Subcontracting — Can they outsource your work to third parties?
4. Qualifications — Are certifications required (Microsoft, CompTIA, etc.)?
5. Reporting structure — Who's your single point of contact?

Red Flag Clauses to Watch For

• "Best efforts" instead of guaranteed SLAs
• Automatic renewal without adequate notice
• Unlimited liability for the client but capped for the MSP
• No data return provision
• Vague scope definitions that allow scope creep charges

What To Do Next

1. Print this checklist
2. Highlight every item that's missing from your current contract
3. Negotiate the gaps before signing
4. If the MSP refuses to negotiate, that's your answer

Pro tip: Share this checklist with your MSP. Their reaction tells you everything about whether they're a partner or a vendor.

Related Guides

• 21 MSP Contract Red Flags to Watch For
• How to Negotiate MSP Contracts
• How to Leave an MSP
• Red Flags