Clause · Technology, Media & Telecommunications / IT Contracts

Service level schedule with service credits (SaaS, managed or hosted services)

A service level schedule for a technology services contract: availability and support response targets, measurement and exclusions, service credits and caps, chronic failure rights, reporting, and an ACL check on whether credits can be the sole remedy.

Kind
Clause. Wording to drop into a longer document.
Where it applies
Australia
AI use
Yellow AI can help in set ways. A lawyer checks specific points before use.
Law stated as at
18 October 2026
Status
Maintained. Checked on 18 October 2026 against the 3 authorities it cites, for Australia.
Version
1
Source
Written for this library

When to use it

Use when drafting or reviewing the SLA schedule to a SaaS, managed services or hosting agreement, for either side. Fill the targets from the operational requirements, not from the vendor’s standard page alone.

Used for these tasks

Each task page says how far AI may help with the task and what the lawyer must review.

How AI may be used

AI may draft the schedule from the agreed targets and extract uptime, credit and response figures from a vendor’s SLA, but the lawyer settles the exclusions, caps, sole-remedy wording and chronic failure rights.

AI may

  • Extract availability, support response and resolution times, credits and caps from a vendor SLA into the tables
  • Calculate example credits for sample outage scenarios using the formula
  • Flag exclusions that could swallow the availability commitment

AI must not

  • Must not set service levels or credit percentages not agreed by the parties
  • Must not state that service credits are the customer’s sole remedy without the lawyer checking the ACL position
  • Must not treat a vendor status page as the measurement source unless the contract says so

The lawyer checks

  • Availability is defined with a clear measurement period, method and source, and exclusions are limited and specific
  • Credits are a genuine pre-estimate or price adjustment, capped as agreed, and their relationship to other remedies is clear
  • Any sole-remedy wording is consistent with ACL ss 64 and 64A and the unfair contract terms law
  • Chronic or critical failure gives a termination or step-in right that is usable in practice

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Read the full text

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