What is the primary purpose of a Master Service Agreement (MSA)?

The primary purpose of a Master Service Agreement (MSA) is to provide an overarching framework or umbrella contract that governs the relationship between parties engaging in long-term services or ongoing business arrangements. An MSA streamlines the contracting process for follow-on agreements tied to specific tasks or projects by outlining general terms and conditions that apply to all future transactions. This approach fosters efficiency and clarity, reducing the need to revisit and renegotiate terms for each individual project.

While specifics of each project, payment schedules, and quality assurance protocols may be important in the context of specific engagements, they are typically detailed in statements of work or similar documents that reference the MSA. By establishing the fundamental terms in an MSA, businesses can expedite subsequent agreements, minimizing the administrative burden and enhancing the relationship's continuity.