Service Level Agreement (SLA)
A contractual annex defining measurable performance requirements: uptime, response times, and the consequences (credits, discounts, penalties) for missing them.
What is an SLA?
An SLA translates vague promises ("we're always available") into measurable parameters:
- Uptime: e.g., 99.9% availability per month
- Response time: e.g., P1 incident within 30 minutes
- Resolution time: e.g., P1 within 4 hours
- Credits: e.g., 10% monthly discount at <99% uptime
Example
| Metric | Target | Measurement | Credit if missed |
|---|---|---|---|
| Uptime | 99.9% | Monthly | 5-25% pro rata |
| P1 response | 15 min | Per incident | €500 per breach |
| P1 resolution | 4 hours | Per incident | €1,000 per hour |
When it matters
- SaaS and cloud contracts (always)
- Managed services / outsourcing (helpdesk, security ops)
- Delivery and supply contracts (delivery reliability)
- Financial services (transaction processing)
Common pitfalls
- No credit mechanism — an SLA without consequences is a statement of intent.
- Vendor-measured without audit right — the butcher grading his own meat.
- Uptime "excluding scheduled maintenance" — defined too broadly = always 100%.
- Credits as sole remedy — you lose the right to recover real damages.
- No escalation path — chronic underperformer keeps invoicing without consequence.
How GuardPilot flags this
GuardPilot tracks actual SLA performance against contractual levels, auto-calculates credits owed, and generates recovery-ready reports. See Invoice Verification.
Related terms: Penalty clause · Contract compliance · Obligation management