What is the service provision contract?

Look, the famous service provision contract is basically a "you do this, I pay you", but with all the legal roll in between. Normally public entities - the government, what - when they need someone external to make a specific chamba, be it a company or some freelance that knows the issue. And yes, it is the backbone of the entire issue of public tenders, because there the rules of the game are put in writing.

If you want to see it more technical, it is an agreement where both parties are committed: one pays, the other works. No favors or "I do it and then we see", here everything is clear: silver for service. It is bilateral, that is, both have to fulfill their part, and if one fails, because there come the problems.

The interesting thing is that this type of contract is every day's bread in public tenders. It is the form that state institutions have to achieve services from private companies or freelancers, but not by finger, but through a transparent competition (at least theory). The benefit? They are supposed to obtain good services without paying more, and everyone who wants can be launched to the ring ... of course, if they meet the requirements.

Now, eye: all this is regulated by laws that vary according to the country. On many sides, public procurement has its own regulations that dictates how things should be done - from how the contract is drafted to how Broncas are resolved if they arise. And believe me, they arise more often than one would like.

If you are a company and want to play in this world of tenders, you have to read the small print. It's not just a matter of signing and already: you have to make sure you have the team, people, time ... everything necessary not to look bad. In addition, understand when and how they will pay you (which is not a small thing) and be ready to fight if something does not expect.

In short, the service provision contract is the basic tool in public tenders. Define who does what, how, when and how much is paid. If you want to enter this, you better know what firms well, because there is the key for everything to flow and do not end in a mess.