Commencement of services: Overview, definition, and example
What is commencement of services?
Commencement of services refers to the official start date or point in time when the services outlined in a contract or agreement begin. This is a critical moment because it marks the beginning of the obligations for both parties, setting the timeline for when work will start and what is expected to be delivered. The commencement date is often specified in a contract and can be contingent upon certain conditions, such as the completion of preliminary tasks, approvals, or payments.
In contracts, the commencement of services is typically tied to specific actions, such as the provision of necessary materials or the signing of the agreement, and it triggers the start of the service period.
Why is commencement of services important?
The commencement of services is important because it provides a clear and agreed-upon starting point for the execution of the contract. It sets expectations for both parties about when the work will begin, ensuring that everyone is on the same page regarding timelines, deliverables, and responsibilities. Without a clear commencement date, there could be confusion about when the services are expected to start, which can lead to delays or misunderstandings.
For businesses, specifying the commencement of services helps ensure that the agreement is actionable and that the service provider can plan their resources and schedule accordingly.
Understanding commencement of services through an example
Let’s say you hire a marketing firm to run a campaign for your business. The contract specifies that services will commence on the first of the month following the signing of the agreement. Once the agreement is signed, the marketing firm begins planning and executing the campaign as agreed, starting on the specified date. This is the commencement of services—when the firm’s work officially begins under the terms of the contract.
In another example, a software development company enters into a contract to build a custom website. The contract states that services will commence once the client has provided all necessary content and designs. Once the client submits these materials, the services officially start, and the development team begins work according to the agreed schedule.
Example of a commencement of services clause
Here’s what a commencement of services clause might look like in a contract:
“The Parties agree that the commencement of services shall begin on [specific date] or upon the completion of the following conditions: [list conditions, such as receipt of required materials, payments, or approvals]. The Service Provider will notify the Client in writing once services have officially commenced.”
Conclusion
The commencement of services clause is a vital part of any contract as it sets a clear and defined starting point for when the work will begin. By clearly stating when services will commence, both parties know exactly when they are expected to start fulfilling their obligations, ensuring smooth execution of the agreement.
Including a commencement of services clause in your contract helps avoid misunderstandings and sets clear expectations for timing, making the business relationship more transparent and effective from the outset.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.