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If you are working in the construction field, then a Professional Services Agreement can help better protect your business. When providing a service, there’s always a risk of a thing or two going wrong. Clients can claim something different to what you agreed on, demand extra work and even refuse payment.
However, having the correct documentation prepared before running into trouble can be the difference between a quick solution or a lengthy dispute.
The consequences of not having an agreement prepared can mean you end up doing additional work for no charge, damaging your business’s reputation, having to pay compensation and more. It’s always best to get things in writing.
So, if you’re working in construction, it’s wise to get a Construction Professional Services Agreement.
A Construction Professional Services Agreement:
- Provides details of the work to your clients
- Includes any contract terms necessary to your agreements
- Promotes exclusivity (if this benefits your business)
- Can be used for multiple clients
If you are providing a construction-based service to clients, a Professional Services Agreement is highly recommended.
What Is A Professional Services Agreement?
A Professional Services Agreement (also referred to as a simple Service Agreement) is a contract between a business and their client. It is a legally binding contract that sets out:
- The service that is going to be provided to the client
- The agreed payment for the service
- The time frame within which the service and payment should be completed
As mentioned earlier, getting all your agreements in writing is highly advisable. Despite the fact that verbal agreements are legally binding, they continue to be problematic.
It’s hard to prove the existence of a contract when it isn’t tangible—and even harder to decipher its terms if the parties later disagree on what was agreed.
So, it’s wise to get the relevant terms in writing.
What Is Included In A Professional Services Agreement?
A Professional Services Agreement covers all the important details of the relationship between your business and client. As the name suggests, it addresses commercial relationships of a more professional nature, so the terms need to be tailored to those specific requirements.
For example, the standard or quality of work expected may be higher than that of a standard Service Agreement. In 2025, with enhanced industry standards and updated regulatory frameworks, ensuring precise documentation is more crucial than ever.
A Professional Services Agreement usually includes:
- The scope of work to be completed
- Terms of the contract
- Payment
- Warranties
- Customer rights and duties
- Intellectual property
- Liabilities
- Dispute resolution
- Termination of the contract
- Force Majeure
The actual agreement will depend on the industry and the specific requirements of the business. It’s always a good practice to consult your legal advisors and check our guide on legal requirements for starting a business to ensure your contract is compliant with the latest 2025 standards.
What Are The Different Types Of Professional Services Agreements?
Professional Services Agreements can be used across a range of industries. Some of the Professional Service Agreements available at Sprintlaw include:
- Marketing Service Agreement
- Solar Installation Services Agreement
- IT Services Agreement
- Directors Service Agreement
- Electrical Services Agreement
- NDIS Plan Management Services Agreement
- Delivery Service Agreement
- Cleaner Service Agreement
If you would like to learn more, chat to our friendly legal consultants today or explore our guides on setting up your legals in 2025.
What About Exclusivity Clauses?
Professional Services Agreements formally bind the relationship between your business and your client. However, they do not prevent you from seeking other opportunities or restrict your client from engaging with other businesses.
If you would like to limit who your client interacts with in order to secure your business interests, you could consider adding an Exclusivity Clause to your agreements.
An Exclusivity Clause may limit interactions by geographical location or product. The purpose is not to eradicate all competition, but to help ensure your business doesn’t suffer losses should the client choose to work elsewhere during the term of the agreement.
| Example Paul owns a timber business, supplying materials to customers. Sandra, who runs a construction company, needs timber for the next six months. After Paul agrees to supply, he suggests adding an exclusivity clause to their agreement to reduce the risk of Sandra switching suppliers. Sandra agrees that for the next six months she will purchase timber exclusively from Paul within her locality. The clause works to protect both parties from unforeseen disruptions. |
If you are looking to benefit from an exclusivity clause in your agreements, it’s best to discuss this with a legal professional who can tailor the clause to your specific business needs.
Do I Need A Professional Construction Services Agreement?
It’s advisable to invest in a Professional Services Agreement for your construction business. The agreement not only documents the relationship between you and your client, but it also provides the additional benefit of clearly setting out mutual expectations in writing, thereby reducing the risk of miscommunication.
The agreement will depend on the specific requirements of your business. For some business owners, drafting a new agreement for each client can be redundant if the terms of business remain consistent.
In response, a Master Services Agreement can be prepared. With a Master Agreement, one main contract is used for every client, with only the job-specific details varying. This streamlined approach ensures consistency and saves you time.
| Example Jane runs a home building service offering three different house designs. Once her clients choose a design, she provides them with a Construction Professional Services Agreement. Jane uses a Master Agreement where the primary terms remain standard and only the client-specific details—such as names, construction dates, and locations—are customised. This method ensures clarity and uniformity across all her projects. |
In 2025, the construction industry continues to evolve rapidly with advancements in technology and updates to regulatory frameworks. It is more important than ever to have robust, up-to-date agreements that not only cover traditional areas such as payment and scope of work but also address modern risks—including digital data protection and cyber security. For additional insights into how to safeguard your business, take a look at our comprehensive guide to contracts and our trademark services that help protect your intellectual property rights.
Next Steps
A Construction Professional Services Agreement is a great way to protect your business while engaging with customers. To summarise, the agreement:
- Can be used as a Master Agreement with the circumstantial details only changing per client
- Is a legally binding contract between you and the client
- The agreement can be customised to meet your business’s requirements
- Exclusivity clauses can be incorporated into the contract
If you would like to learn more about getting a construction professional services agreement tailored for your business, please call us on 1800 730 617 or email team@sprintlaw.com.au for a free, no-obligation chat.
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