Internal contract
An internal contract is one that exists between a principal and an agent, i.e. the agent is legally appointed to act on its behalf. An external contract is one that exists between a principal and a third party, usually with the facilitation of an agent.
A service level agreement (SLA) is a common type of internal contract, which sets out what a supplier/service provider is required to provide to the client, and to what standard.
For more information, see Service level agreement.
Internal contracts can be prepared within an organisation, i.e. between teams or departments, or used for the outsourcing of services, such as facilities management, IT services, and so on.
Some of the elements typically required in an internal contract include:
- Name of the principal/client.
- Name of the agent/supplier.
- The product and/or services to be provided.
- Start date.
- Estimate of the elapsed time required. (For SLAs, this takes the form of a renewal date.)
- Price and the terms of payment.
- Client’s accountabilities, i.e. what the client must do/provide in order for the supplier to successfully perform the contract.
- Risks and assumptions about external dependencies that may hinder the performance of the contract.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
ECA digital series unveils road to net-zero.
Retrofit and Decarbonisation framework N9 launched
Aligned with LHCPG social value strategy and the Gold Standard.
Competence framework for sustainability
In the built environment launched by CIC and the Edge.
Institute of Roofing members welcomed into CIOB
IoR members transition to CIOB membership based on individual expertise and qualifications.
Join the Building Safety Linkedin group to stay up-to-date and join the debate.
Government responds to the final Grenfell Inquiry report
A with a brief summary with reactions to their response.
A brief description and background to this new February law.
Everything you need to know about building conservation and the historic environment.
NFCC publishes Industry White Paper on Remediation
Calling for a coordinated approach and cross-departmental Construction Skills Strategy to manage workforce development.
'who blames whom and for what, and there are three reasons for doing that: legal , cultural and moral"
How the Home Energy Model will be different from SAP
Comparing different building energy models.
Mapping approaches for standardisation.
UK Construction contract spending up at the start of 2025
New construction orders increase by 69 percent on December.
Preparing for the future: how specifiers can lead the way
As the construction industry prepares for the updated home and building efficiency standards.
Embodied Carbon in the Built Environment
A practical guide for built environment professionals.
Updating the minimum energy efficiency standards
Background and key points to the current consultation.
Heritage building skills and live-site training.