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How to write your Hosted Services ASP Contract
We include this 4 page template with IT/Software/Hardware Contract Pack and the Proposal Kit Professional. You will get more content and software automation for data merging, managing client documents, and creating proposals with line item quoting with a Contract Pack or the Professional.
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1. Get IT/Software/Hardware Contract Pack or the single template that includes this business contract document.
We include this contract in editable Word format that can be customized using your office software.
2. Download and install after ordering.
Once you have ordered and downloaded your template or pack, you will have all the content you need to get started.
3. Customize the contract template with your information.
You can customize the contract document as much as you need. If you get a Contract Pack or Professional Bundle, you can also use the included Wizard software to automate name/address data merging.
Use cases for this template
Agency secures a scalable SaaS portal for a retail client
The Challenge
Cobalt Finch Agency needed to contract directly with NimbusStack Hosting for ASP services to support a nationwide retailer, but the team faced unclear Specifications, third-party software dependencies, and finance's demand for a precise transaction-by-transaction cost view before approving the implementation.
The Solution
They used the Proposal Kit software to create supporting documents around the legal contract: a detailed implementation plan, a service catalog with features and interface notes, a disaster recovery overview, and an automated line-item quoting package to show benefits and pricing; the AI Writer produced a migration playbook and a risk summary that clarified responsibilities without altering the core contract template.
The Implementation
Cobalt Finch negotiated the Hosted Services terms with NimbusStack, attached the new exhibits, and circulated Proposal Kit-generated summaries to stakeholders; procurement reviewed the quotes, IT validated maintenance and performance expectations, and legal confirmed confidentiality language aligned with practice and security needs.
The Outcome
The client approved the project within two weeks, the agency avoided scope creep through clear exhibits, and the provider maintained steady response commitments, resulting in a smooth launch and predictable renewals tied to measurable benefits.
Manufacturer modernizes operations with a Microsoft-based cloud platform
The Challenge
Ridgefield Tools chose BlueRiver Cloud to deliver saas software integrated with Microsoft services, but IT, finance, and operations struggled to align on access controls, maintenance windows, and how each purchase order would map to a transaction under the agreement.
The Solution
Using Proposal Kit, the team produced supporting materials: a data governance brief, an SLA outline for response targets, a change-control plan for features and interface updates, and an implementation training schedule; automated line-item quoting clarified module costs, while the AI Writer created an acceptance-test checklist and executive status report to guide approvals.
The Implementation
They executed the Hosted Services agreement, then phased work through sandbox, staging, and production, referencing Proposal Kit documents to track dependencies on third-party software and the web host infrastructure and to keep stakeholders coordinated on performance milestones.
The Outcome
Ridgefield Tools went live on time with clear cost controls, fewer escalations, and auditable documentation that supported compliance reviews and future expansions under the same contract directly with the provider.
Telehealth startup launches a secure patient portal with clear roles
The Challenge
CareNest Health needed a hosted portal from HelioHost ASP with video and payment integrations, while an external agency managed branding; overlapping responsibilities, security of confidential information, and internet access continuity created uncertainty during implementation.
The Solution
CareNest used Proposal Kit to build a partner responsibility matrix, a security and disaster recovery briefing, and a support handbook aligned to the contract; automated line-item quoting detailed add-on fees, and the AI Writer produced an onboarding guide and a performance metrics brief to set expectations for response and uptime without modifying the core legal template.
The Implementation
They finalized the Hosted Services agreement, attached Specifications for functionality and maintenance, and distributed Proposal Kit-generated documents to connect stakeholders on escalation paths, registering administrators, and handling transactions that added users or modules.
The Outcome
CareNest launched on schedule with clear interfaces and support processes, reduced risk across different contracts, and a repeatable documentation pack that simplified future updates and investor reporting.
Abstract
This hosted web services service contract sets the terms for delivering ASP services and saas software over the internet. It functions as an ASP agreement between a provider and a customer for the cloud computing delivery of software applications. The contract defines Hosted Services, Support Services, and Consulting Services, and ties them to Specifications that describe features, functionality, interface, access, maintenance, and performance expectations. Company Materials remain owned by the provider; the customer receives a limited, non-exclusive license to use the services to the extent stated in the Specifications.
The agreement establishes infrastructure and billing basics. Service typically starts after the first payment and any setup charges. Initial terms run six or twelve months, then renew automatically unless canceled with written notice 30 days before renewal.
Pricing and renewal rates may change. Payments are C.O.D. unless credit is approved; credit can be revoked if invoices are past due. This structure supports predictable transactions while allowing the provider to maintain and scale the web host environment.
The provider disclaims warranties of merchantability and fitness and does not guarantee end-to-end internet access speed or availability; remedies for downtime are limited to a pro-rata credit. The provider does not control customer content passing over the internet. Customers warrant their rights to trademarks and agree not to reverse engineer, sublicense, or share confidential information or third-party software without authorization. These confidentiality and security clauses protect both parties' practice of safeguarding code, pricing, and other sensitive materials.
Assignment requires consent, and customers must notify the provider ahead of ownership changes. Termination can occur for breach, insolvency, or mutual agreement. In disputes, the prevailing party may recover fees.
The customer indemnifies the provider for claims tied to the customer's marketing or support activities and any unauthorized representation. Performance, response times, security controls, and disaster recovery are not exhaustively detailed in the core language and are better addressed in the Specifications, an addendum, or, for some organizations, different contracts.
Example use cases include an agency delivering a Microsoft-based SaaS portal, a startup implementing a hosted interface that lets users connect, register new accounts, and submit a support request, or an enterprise integrating approved third-party software via the provider's platform.
Proposal Kit helps teams produce documents like this efficiently by combining document assembly, automated line-item quoting, an AI Writer for related materials, and an extensive template library. These tools streamline writing Specifications and related agreements, improving consistency and ease of use.
Beyond defining scope and licensing, this kind of hosted services arrangement sets clear business rhythms that procurement, finance, and IT can plan around. Many organizations prefer to contract directly with the provider to centralize accountability for support and change management. The benefits include predictable renewals, simple invoicing, and a defined pathway for expanding capacity or adding modules through the Specifications and Exhibits. Leaders should link service milestones to implementation activities such as onboarding, data migration, and training, and align internal approval gates for each transaction that affects cost or scope.
Risk and operations teams can use the agreement structure to map controls: who administers accounts, how incidents are escalated, and where continuity measures and disaster recovery live in the documentation. The confidentiality, license limits, and indemnification clauses help manage exposure when customers integrate third-party topics or run their own marketing programs. Because warranties and availability guarantees are limited, performance targets, response expectations, and security responsibilities should be captured in the Specifications, with change control to keep them current as the service evolves.
Proposal Kit can streamline this process by assembling the base agreement and related exhibits, producing precise line-item quotes, and using its AI Writer to write supporting materials such as an implementation plan, a service catalog, or a transaction summary for approvals. Its template library helps teams maintain consistency across different contracts while keeping the documents clear and easy to use.
Two areas often overlooked are data governance and offboarding. The agreement does not spell out data export rights, formats, or timelines, so the Specifications should define how customer data is backed up, how long it is retained, and the process to retrieve it at termination, including supported file types and any fees. Clarify how confidential information is classified and who can access it, along with joiner/mover/leaver procedures to maintain least-privilege access across the hosted environment.
Operational clarity also matters. Document business hours for Support Services, severity levels, who may open a request, expected response and resolution targets, and the escalation path. Include a change-control routine for feature updates so stakeholders know when interfaces change and how regression testing will occur.
Spell out environments used during implementation, sandbox, staging, and production, and success criteria for cutover and acceptance. Where third-party software or a separate web host underpins the service, note dependencies and redundancy expectations to reduce single points of failure and protect internet access continuity.
To reduce lock-in, require standard protocols and portable data models so integrations can connect with other software applications. Define consulting deliverables and acceptance criteria separately from run-time services to keep transactions auditable. Include KPIs for capacity, maintenance windows, and patch cadence so both sides can plan releases and maintain compliance. For customers who prefer to contract directly but operate through an agency or division, add a role matrix that lists responsibilities for security, updates, and disaster recovery testing.
On the commercial side, align volume tiers, add-on modules, and price-change notices with budget cycles, and specify how purchase orders map to each transaction. These practices create measurable benefits: faster onboarding, fewer surprises, and clearer accountability across different contracts and teams.
How to write my Hosted Services ASP Contract document - The Narrative
HOSTED WEB SERVICES AGREEMENT
THIS AGREEMENT is made this Current Day day of Current Month, Current Year by and between Company Name ("Company") and Company Name ("Customer"). The purpose of this Agreement (hereafter referred to as the "Agreement") is to set forth and define an arrangement under which Company will provide Hosted Web Services ("Hosted Services") on behalf of Customer. As a service, the standard Services Agreement with Company is provided below.
Subject to the following terms and conditions of this Agreement, Company will provide Hosted Services for Customer:
Specifications
Company agrees to provide Customer with Hosted Services according to the attached Specifications (the "Specifications") as defined in Exhibit B, attached hereafter.
1 Services Definitions
"Services" shall mean the services to be provided by Company to Customer under this Agreement and may comprise the following:
"Hosted Services" shall mean both the license(s) and the services provided by Company to Customer as described by the Specifications. "Support Services" shall mean any help, support, setup, installation, or other assistance as described by the Specifications. "Consulting Services" shall mean any additional services as described by the Specifications.
"Company Materials" shall mean any software, code, or other materials transmitted to Customer in order to provide any of the services under this Agreement.
2 Services Provisions
Rights and License Granted
Company hereby grants to Customer a limited, non-exclusive, royalty-free worldwide license, during the Term to use the Services and/or any software provided to Customer under this Agreement for the purpose of using the Services. Customer shall have no right to use the Services for any other purpose, implied or otherwise, unless defined in the Specifications.
Limitations to Rights and License
At no time will Customer hold title to or ownership of any of the Hosted Services or Materials provided to Customer during the term of this Agreement.
3 Length of Service
Customer agrees to an initial six (6) month or twelve (12) month contractual term of service ("Term"). The length of contract required is based on the type of service desired by Customer and shall be determined solely by Company as defined in Exhibit A.
4 Service Start Date
The first payment plus setup charges, if any, shall be due in advance of any service provided. Service shall begin upon Company receipt of payment for such first Term of service or upon a mutually agreed upon alternate date.
5 Renewal by Customer
This agreement will automatically renew for successive six (6) or twelve (12) month Terms unless canceled in writing by Customer at least thirty (30) days prior to the end of Term renewal date. Renewal prices are subject to change. Renewal of Services by Customer indicates agreement to any contract revisions and price changes. Renewal fees for the following Term will be automatically invoiced to Customer's account.
End-User Pricing and Services Compensation
End-User Pricing and Services Compensation are outlined on Exhibit A, attached, and are subject to change at the sole discretion of Company.
Terms of Payment
Terms of payment are C.O.D. unless credit approval has been granted by Company. If credit approval has been granted, credit terms are net ten (10) days upon receipt of invoice. Company reserves the right to revoke any credit extended if payment is in arrears for more than thirty (30) days.
Proprietary Information
Proprietary information exchanged hereunder shall be treated as such by Customer. This information shall include, but is not limited to, the provisions of this Agreement, product and services information, materials, software, code, pricing, or any other materials transmitted to Customer under this Agreement. Customer agrees not to (a) decompose, disassemble, decode, or otherwise reverse engineer any Company program, code, or technology installed or delivered to Customer or any portion thereof; (b) transmit or allow to be transmitted any such materials to any third party except as necessary for the fulfillment of this Agreement; (c) sublicense or allow use of any materials or use of any provided services to any third party without written permission from Company; (d) use any Materials or Services in any way not intended or expressly provided for by this Agreement.
Customer Information Content
Company will exercise no control whatsoever over the content of the information passing through the network, email, or web site.
Warranties
Company makes no warranties or representations of any kind, whether expressed or implied, for the Service it is providing. Company also disclaims any warranty of merchantability or fitness for any particular purpose and will not be responsible for any damages that may be suffered by Customer, including loss of data resulting from delays, non-deliveries or service interruptions by any cause or due to errors or omissions of Customer. Use of any information obtained by way of Company is at Customer's own risk, and Company specifically denies any responsibility for the accuracy or quality of information obtained through its Services. Connection speed represents the speed of an end-to-end connection.
Company does not represent guarantees of speed or availability of end-to-end connections. Company expressly limits its damages to Customer for any non-accessibility time or other down time to the pro-rata monthly charge during the system unavailability. Company specifically denies any responsibilities for any damages arising as a consequence of such unavailability.
Trademarks
Customer warrants that Customer has the right to use any applicable trademarks or copyrighted materials that Customer integrates or uses in connection with this Service.
Transfer of Agreement
Customer may not assign or transfer this Agreement, in whole or in part, without the prior written consent of Company. In the event that Customer contemplates whole or partial sale of Customer's business, ownership change, or change in jurisdiction, Customer shall notify Company by mail, facsimile, or email no less than sixty (60) days prior to the effective date of the event.
Termination
Company may terminate this Agreement at its sole discretion upon the occurrence of one or more of the following events: 1) failure to comply with any provisions of the Agreement upon receipt of written notice from Company of said failure, 2) appointment of Receiver or the filing of any application by Customer seeking relief from creditors, 3) upon mutual agreement in writing by Company and Customer.
Disputes
If legal proceedings are commenced to resolve a dispute arising out of or relating to this Agreement, the prevailing party shall be entitled to recover all costs, legal fees, and expert witness fees as well as any costs or legal fees in connection with any appeals.
Indemnification
Customer shall indemnify and hold Company harmless from and against any and all claims, judgments, awards, costs, expenses, damages, and liabilities (including reasonable attorney fees) of whatsoever kind and nature that may be asserted, granted, or imposed against Company directly or indirectly arising from or in connection with Customer's marketing or Support Services of the product or Services or the unauthorized representation of the product and Services or any breach of this Agreement by Customer.
General
If any provision of this Agreement is held to be unenforceable, the enforceability of the remaining provisions shall in no way be affected or impaired thereby. This agreement and any disputes arising here under shall be governed by the laws of State State. A failure by any party to exercise or any delay in exercising a right or power conferred upon it in this Agreement shall not operate as a waiver of any such right or power. The parties represent and warrant that, on the date first written above, they are authorized to enter into this Agreement in its entirety, and duly bind their respective principals by their signatures below.
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How to Build a Legal Contract with Proposal Kit
This video illustrates how to create a legal contract using the Proposal Pack Wizard software. It also shows how to create a proposal with an invoice and contract at the same time.
Frequently Asked Questions
How do I customize this contract to fit my business needs?
Customizing this contract involves editing the document to include your business details, terms, and conditions. The templates are designed to be flexible, allowing you to insert your company's name, address, and other relevant information. You can modify clauses to reflect your unique business practices and legal requirements.
Is this contract compliant with laws and regulations?
The legal contract templates are written by legal professionals and designed to comply with current laws and regulations at the time of their writing. However, laws can vary by jurisdiction and change over time, so it's recommended to have your contract reviewed by a local attorney to ensure it meets all legal requirements specific to your region and industry. Templates are licensed as self-help information and not as legal advice.
Can I use the same contract for different clients or projects?
You can use the same contract for different clients or projects. The templates are versatile and easily adapted for various scenarios. You will need to update specific details such as client names, project descriptions, and any unique terms for each new agreement to ensure that each contract accurately reflects the particulars of the individual client or project.
What should I do if I encounter a clause or term I don't understand?
If you encounter a clause or term in the contract that you need help understanding, you can refer to guidance notes explaining each section's purpose and use. For more complex or unclear terms, it's advisable to consult with a legal professional who can explain the clause and help you determine if any modifications are necessary to suit your specific needs.
How do I ensure that the contract is legally binding and enforceable?
To ensure that the contract is legally binding and enforceable, follow these steps:
- Complete all relevant sections: Make sure all blanks are filled in with accurate information.
- Include all necessary terms and conditions: Ensure that all essential elements, such as payment terms, deliverables, timelines, and responsibilities, are clearly defined.
- Signatures: Both parties must sign the contract, and it is often recommended that the contract be witnessed or notarized, depending on the legal requirements in your jurisdiction.
- Consult a legal professional: Before finalizing the contract, have it reviewed by an attorney to ensure it complies with applicable laws and protects your interests.
Ian Lauder has been helping businesses write their proposals and contracts for two decades. Ian is the owner and founder of Proposal Kit, one of the original sources of business proposal and contract software products started in 1997.By Ian Lauder
Published by Proposal Kit, Inc.Disclaimers
Proposal Kit, Inc. makes no warranty and accepts no responsibility for the suitability of any materials to the licensee's business. Proposal Kit, Inc. assumes no responsibility or liability for errors or inaccuracies. Licensee accepts all responsibility for the results obtained. The information included is not legal advice. Names in use cases have been fictionalized. Your use of the contract template and any purchased packages constitutes acceptance and understanding of these disclaimers and terms and conditions.
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