SLA with Service Providers


All societies have service providers. It could be facility management company, security agency, housekeeping agency, gardening agency, maintenance agency or any other.  The society management and residents often express their displeasure with respect to the quality of services. Most often, there is a disconnect in what the residents / management want and what the service providers perceive. One of the useful connect is setting up ‘Service Level Agreements’ (SLA) between the service provider and the client.



So what is service level agreement? A service level is a measurable parameter which can be used to measure the performance of a service provider. A service level agreement is a list of such service levels. An example of typical service level:


  • Average Time to resolve resident complaint

  • No of security violations registered in a month

  • Average % recovery against the bills

  • % fulfilment of allotted man-power

  • Total equipment downtime

  • No of leakages unattended in a month

  • Maintenance cost per square feet

  • % of persons replaced in a month


Unless a society is able to define service level and put up a mechanism to measure such a service level objectively and put in incentive/ penalty against, the service level, the performance of the service provider is really not measured.


What most of the societies and service provider do that they work out man-power requirement and allocation and the rates for the same. The service provider bills for such a man-power to the society. The challenge is that good service or bad service remains a subjective consideration.


We must say that it is important to define service level and it is equally important to set-up a process to measure such a service level on a regular basis.


In a practical scenario, a society may need to work-out a combination of man-power and service level agreements to define a contract with a service provider. In such a case, the man-power acts as a basic charge of the contract and service levels are used to calculated incentive or penalty.


We would request you to share your experiences and share SLA being used in your society. We would enumerate service levels for different service providers in our subsequent mails


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