Service Contract

When a business SLA is violated, you may want to impose penalty on the concerned party. The penalty calculation is defined through a ‘Contract’ metric that is valid for a particular duration. The section uses the contract amount and computes the penalty based on the violation of SLA. The penalty amount is showed in currency.

Configuring Contracts

In contract management, each contract’s metric will define the penalty %. For e.g. uptime of a core router is critical for company’s operations. It will have contract as follows:

Sr. No	Lower Limit	Upper Limit	Penalty (%)	Remarks
1	99	- Infinite ( 100.1)	0	No Penalty
2	98	98.99	2	2% of Contract Value
3	96	97.99	5	5% of Contract Value
4	94	95.99	10	10% of Contract Value
5	92	93.99	15	15% of Contract Value

Computation of Penalty

At the end of the SLA life, suppose the ‘Target Achieved’ is 92%. And the total contract amount is 5 Lakh INR. Motadata will compute as follows:

• Contract Amount - 5,00,000
• Target Achieved - 92%
• Target falling in bracket ( row no 5)
• Penalty imposed in %: 15
• Penalty Value: 5,00,000 x 15% = 75,000

Contract Fields

Contract Management uses following fields:

• Name: (String) Name of the contract to identify it.
• Contract Value: (Decimal) the total amount of contract award. The currency is managed by Admin in Global Settings.
• Start Date: Date on which the contract starts
• End Date: Date on which the contract ends
• Status: Enabled/Disabled/Expired
• Description: Detailed information about the SLA for other people to understand its worth.

Create a New Contract

You’ll need to create a service contract to compute contract value and impose penalty when an SLA is violated. Creating a contract requires the following fields:

• Name: (String) Name of the contract to identify it.
• Contract Description: (String) Detailed information about the SLA for other people to understand its worth.
• Upload Contract: Upload a document (digital copy) related to the contract.
• Status: (Drop-down) Enabled/Disabled
• Contract Value: (Decimal) the total amount of contract award.
• Start Date: Date on which the contract starts
• End Date: Date on which the contract ends
• Upper Limit: (Decimal) to set the upper limit of target value to calculate penalty.
• Lower Limit: (Decimal) to set the lower limit of target value to calculate penalty.
• Penalty Percent: (Decimal) to set the percentage of applicable penalty. This penalty will deduct from Price to calculate penalty value.
• Remarks: (String) You can put a remark/description/comment about the penalty.

Creating a SLA Contract

View SLA Contract

Click on the contract name to view the details of the contract.

SLA View Page

Edit SLA Contract

You can change the contract details from edit page. You can edit a contract from contract’s list page. If an SLA is bound with a business service, only name and description fields are editable.

Edit option of Contract

Edit Service Contract

Delete SLA Contract

You can delete a contract from contract’s list page. However, you CANNOT delete a contract if it is tied with any Business Service/SLA.

Delete Option of Contract

Drop and Auto Calculation

For easier calculation of Penalties with regards to SLA, Motadata now provides the automated calculation of values.

Below described are the computed values with the help of few formulas. They are:

Drop Calculation

Case 1: If Achieved value comes in Range where Drop % is Set

1. (Upper Limit of set Drop%)-(Achieved) = Value 1

2. (Value 1)/(Drop%) | (Where achieved range fall and Drop% Set) = Value 2

3. Ceiling (Value 2) = Value 3

4. (Value 3)*(Penalty%)|(Where achieved range fall and Drop% Set) = Value 4

5. (Value 4)+(All Penalty% of upper range of Achieved)

Case 2: If Achieved value come in Range where Drop % is not Set then,

1. (Penalty % of Achieved Fall range) + (All Penalty% of upper range of Achieved) = Value 5

Auto Calculation

Case 1: If Achieved value comes in Range where Auto is Set then,

1. (Upper Limit of set Auto%)-(Achieved) = Value 1

2. (Value 1)+(All Penalty% of upper range of Achieved) = Value 2

Case 2: If Achieved value comes in Range where Auto % is not Set then,

1. (Penalty % of Achieved Fall range) + (All Penalty% of upper range of Achieved) = Value 3

note

Value 1..n are hypothetical values, which are defined to be the product of the applied formulas.