An MSA contract is used to outline and govern all activities and responsibilities between two or more parties. It is needed to provide indemnification and allocate risks that may occur in a business relationship.

An MSA outlines a relationship between parties, while an SoW describes in detail the terms & conditions of project delivery. An SoW is not a separate document. Rather, it often goes alongside an MSA.

Any company that plans to provide long-term or short-term services to a customer needs to sign an MSA. It is a solid foundation for any kind of business relationship, and it makes signing future contracts faster and easier.

A Statement of Work can be a good foundation for a Master Service Agreement as it outlines the details of the service that will be provided. But an SOW should only be drafted after you have decided on the general guidelines of your relationship, which fall under an MSA.

It is important to include 4 things: what you will do, what the other party will do, what you will do together, and every issue that you may encounter in a business relationship. Make sure to not only outline responsibilities, but also the risks and dispute resolutions.

An MSA is valid until the expiration date unless you include an option to extend the duration of the contract. Usually, a contract lasts for 1 year before automatically renewing itself unless decided otherwise by the parties involved. But it is up to you to determine the initial period and extension options.