Extent of services: Overview, definition, and example
What is extent of services?
Extent of services refers to the scope, limitations, and specific details of the services that a party agrees to provide under a contract. This clause defines what services are included, any exclusions, and the level of performance expected, ensuring clarity for both parties.
For example, in a consulting agreement, the contract may specify that the consultant will provide strategic advice but will not be responsible for implementation, setting clear boundaries on the extent of services.
Why is extent of services important?
Extent of services is important because it prevents misunderstandings, disputes, and unrealistic expectations about what a service provider is required to deliver. It helps both parties define responsibilities, avoid scope creep, and ensure proper compensation for additional work beyond the agreed terms.
For businesses, including an extent of services clause helps maintain operational efficiency, manage project deliverables, and clarify service limitations. This provision is commonly used in professional services agreements, outsourcing contracts, and service-level agreements (SLAs).
Understanding extent of services through an example
A marketing agency signs a contract with a client to develop a digital advertising strategy. The contract includes an extent of services clause, specifying that the agency will create ad campaigns and provide analytics reports but will not be responsible for purchasing ad placements or managing customer inquiries.
In another case, an IT services provider enters into an agreement to maintain a company’s servers. The extent of services clause states that the provider will conduct regular system updates and troubleshooting but will not cover data recovery or software licensing costs, ensuring the client understands service limitations.
Example of an extent of services clause
Here’s how an extent of services clause might appear in a contract:
“The Service Provider agrees to perform the services outlined in Exhibit A. The services shall be limited to the scope described and shall not include any additional tasks or responsibilities unless agreed to in writing by both parties. Any request for services beyond the defined scope may be subject to additional fees.”
Conclusion
An extent of services clause ensures that both parties clearly understand what services are included, what is excluded, and any limitations on the provider’s responsibilities. This provision helps prevent disputes, control costs, and establish clear expectations, making it essential for consulting agreements, service contracts, and professional engagements. Including this clause in contracts provides legal protection and operational clarity, ensuring smooth service delivery and accountability.
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.