What is a Professional Services Agreement?

When a business contracts professional services, a professional services agreement is required. Professional services are any services that are provided by a contractor with specific qualifications, high-level skills, and expertise to complete a project-based task.

This agreement sets out the terms by which the service company will perform services for a business. It can be customized to a business’ unique needs, but typically includes party names, date, the scope of service, performance standards and warranties, nature of services , company name, fees, expenses, payments, overdue payments, disputed charges, termination, taxes, confidentiality to cover any scenario that may occur or go unintended.

Services Professional Agreements are Customized for:

  • Translation services
  • Laboratory analysis
  • Auditing
  • Project evaluation
  • Data analysis
  • Software development
  • Writing services
  • Web design
  • Marketing research
  • Accounting Services
  • Medical Services
  • Legal Services

A professional services agreement can be used one time or for ongoing services. A business can tailor a blank PSA to include specific contractors, tasks, and time-frames. When services are provided, a written authorization is created specifying the rate of payment, survey costs, and planning costs if applicable.

Subcontractors vs. Vendors

Professional services agreements refer to the contractor as a vendor rather than a subcontractor, allowing the payments to be  taken from budget jurisdiction.


  • Have performance goals that can be measured to determine if the project was a success or not.
  • Are responsible for making important decisions regarding the project.
  • Determine who receives payment.
  • Receives funds to complete the project.
  • Are used on an ongoing basis.


  • Provide goods and services.
  • Have multiple competitors.
  • Provide goods and services to complete the program.

When a project is a one-time occurence that requires a vendor, a professional service agreement would be preferable. A professional services agreement is a legally binding contract that can’t be changed without the consent of all parties involved. It is essential to ensure this is the type of vendor agreement you want before having the documents drawn up.

Business Attorney Palm Beach Gardens

Paul J. Burkhart

Paul J. Burkhart can help your business with drafting professional services agreements. Paul J. Burkhart is an experienced business attorney and is able to customize a professional service agreement which will meet your business’ needs for any project.

Our team assists both individuals, and business clients with all their legal needs, including business and Corporate Transactions, Business/Commercial and Civil Litigation, Real Estate, Intellectual Property, Family Law, and Estate Planning matters. We are a full-service private law firm ready to assist you with any request, large or small. Call 561-880-0155 or visit our website.


Law Offices of Paul J Burkhart, PL
800 Village Square Crossing
Palm Beach Gardens, FL 33410|
Phone: (561) 880-0155


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