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Understanding Contract Concepts

A contract in ServiceOps is a record representing a formal agreement with a vendor for services, hardware, or software. It is the central object for tracking terms, costs, and life cycles to ensure compliance and control spending.

Understanding the core components and properties of a contract is essential for effective management.

Anatomy of a Contract​

Each contract record in ServiceOps is defined by a set of key properties that provide a comprehensive view of the agreement.

Core Details
  • Contract Number & Name: A unique identifier and a descriptive name for the agreement.
  • Vendor: The third-party supplier or partner the contract is with.
  • Contract Type: The category of the agreement. ServiceOps includes default types like Lease, Warranty, Maintenance, and Support, allows you to create custom types.
  • Owner & Department: The internal individual and department responsible for managing the contract.
  • Attachments: The ability to attach the actual contract document (e.g., PDF) and other relevant files directly to the record.
Financials
  • Cost & Currency: The total value of the contract and the currency it is in.
  • Start & End Dates: The active period of the contract. These dates drive the automated lifecycle status.
  • Notification Period: The number of days before the end date that the system should send an expiration reminder.
Status & Lifecycle
  • Status: The current state of the contract in its lifecycle. This is automatically updated based on the start and end dates.
    • Not Yet Started: The start date is in the future.
    • Active: The current date is between the start and end dates.
    • Expired: The end date is in the past.
    • Cancelled: The contract was terminated manually before its end date.
  • Auto-Renew: A flag to indicate if the contract should automatically be renewed.

Contract Hierarchy​

ServiceOps supports parent-child relationships between contracts, which is useful for managing complex agreements.

  • Parent Contract: The main or master agreement.
  • Child Contract: A sub-contract that is linked to a parent.

Key Rules:

  • A child contract cannot have a start date earlier than its parent or an end date later than its parent.
  • If a parent contract is expired or cancelled, all its child contracts are automatically updated to the same status.

Contract Relationships & Integrations​

The true value of contract management comes from linking contracts to the other entities they govern.

Requests & Incidents
  • Service Requests: Link contracts to requests to validate entitlement. For example, when a user requests a repair, the system can check if the associated asset is covered by an active maintenance contract.
  • SLAs: A Service Level Agreement is a type of contract that can be linked to services to enforce response and resolution times.
Assets
  • Hardware & Software Assets: Link a contract directly to the assets it covers. For example, attach a three-year hardware warranty to 100 new laptops, or a maintenance agreement to a specific server.
  • Non-IT and Consumable Assets: Extend contract management beyond technology by linking agreements to other assets. For example, attach a maintenance contract to an HVAC unit or a bulk purchase agreement to office supplies to track costs and terms.
Purchasing
  • Purchase Orders: Connect a contract to the purchase order that initiated it, providing a full audit trail from procurement to ongoing management.
  • Vendors: The vendor assigned to the contract is linked to your central vendor database, allowing you to see all active contracts for a specific supplier.

Best Practices​

  • Standardize Contract Types: Use a consistent set of contract types to make reporting and management easier.
  • Set Expiry Reminders: Proactively configure notification rules to give yourself enough time to review and renegotiate contracts before they expire.
  • Attach All Documents: Always attach a digital copy of the signed contract to the record for easy reference.
  • Track All Relationships: The more you link contracts to assets and vendors, the more valuable your contract data becomes.