Master Service Agreement (MSA) FAQ

Answers to common questions about Master Service Agreements — when you need one, how to structure SOWs, and key terms to negotiate.

Basics

What is a Master Service Agreement?

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An MSA is a contract that establishes the general terms governing an ongoing business relationship. Individual projects are defined in separate Statements of Work (SOWs) that reference the MSA. This avoids renegotiating general terms for each new project.

When do I need an MSA vs a standalone agreement?

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Use an MSA when you expect multiple projects with the same client over time. For a single project, a standalone services agreement is simpler. The MSA structure is most valuable for consulting firms, agencies, IT services, and other businesses with recurring client engagements.

What is the relationship between an MSA and a SOW?

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The MSA contains general terms (payment, liability, IP, confidentiality, termination). Each SOW defines a specific project (scope, deliverables, timeline, fees). If there is a conflict, the SOW typically takes precedence for project-specific terms, while the MSA governs general terms.