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How to write your Web Server Colocation Hosting Contract
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Use cases for this template
NimbusLedger's fast-growth move into a resilient colocation footprint
The Challenge
NimbusLedger, a SaaS startup, won a big enterprise customer that required relocating workloads from a crowded office closet to IronForge Colocation's facilities without a full or partial interruption of service, while staying on budget for shipping, installation, and remote hands as the customer's usage surged in peak periods.
The Solution
They used Proposal Kit to assemble a supporting migration proposal, risk assessment report, and a communications plan for stakeholders; the AI Writer produced drafts of these non-contract documents, and line-item quoted power circuits, cross-connects, cabinet lease, other hardware, and after-hours hands-on assistance at the customer's expense.
The Implementation
Working with IronForge, NimbusLedger coordinated inspections, change windows, and a detailed move schedule; Proposal Kit's templates kept the process clear with an acceptance checklist, inventory and removal forms, and a post-move validation study that documented testing, service levels, and rollback steps in a manner the leadership team could approve quickly.
The Outcome
The relocation was completed on time with zero unplanned downtime, predictable costs, and a clean audit trail; NimbusLedger's account team reused the Proposal Kit documents to brief new affiliates and suppliers, accelerating future deployments and improving business continuity for additional regions around the world.
MediScope Analytics aligns colocation with healthcare compliance demands
The Challenge
MediScope Analytics needed to colocate data pipelines handling sensitive health data while meeting strict regulations and internal safety policies, and the team was advised to document controls in detail so the provider relationship would be clear about obligations, inspections, and acceptable operational boundaries.
The Solution
Using Proposal Kit, the ops lead assembled a compliance matrix, a data handling procedures manual, and an incident response plan in support of the signed colocation contract; the AI Writer drafted these guides and a training brief, while line-item quoting clarified costs for additional storage, dedicated bandwidth, and monitoring services.
The Implementation
They coordinated with SummitRack Data Centers to schedule an on-site inspection, define acceptable access, and note any constraints that could adversely affect services; Proposal Kit's document assembly produced a change-control plan and maintenance calendar so both parties were clear on notice periods, roles, and escalation contact points.
The Outcome
Auditors deemed the controls well documented, the provider understood responsibilities with respect to maintenance and notifications, and MediScope gained the benefit of repeatable templates for future country expansions without re-inventing the documentation for each new site.
BrightHarbor Retail prepares for seasonal spikes with a capacity plan
The Challenge
E-commerce company BrightHarbor faced holiday traffic multipliers and was unable to risk throttled checkouts or latency, so leadership needed a capacity and redundancy plan that aligned with the colocation agreement, budget limits, and the intended customer experience.
The Solution
With Proposal Kit, the engineering manager produced a supporting capacity planning proposal, a load-testing study, and a business continuity playbook; the AI Writer drafted these non-contract documents, and line-item quoting produced transparent costs for server hardware expansion, IP allocations, burstable bandwidth, and remote hands coverage during extended hours.
The Implementation
They worked with NorthBridge Colo to arrange pre-peak inspections, coordinate staged installs, and define routine maintenance windows; Proposal Kit templates ensured each step-procurement, shipping, installation, validation, and rollback-was captured with responsibilities, timelines, and acceptance criteria.
The Outcome
Peak season completed with faster checkouts, higher conversion, and clear visibility into costs; BrightHarbor kept the reusable Proposal Kit package for future renewals, enabling quick updates to studies and plans as demand patterns changed and new campaigns launched.
Abstract
This colocation services agreement operates like a master services agreement that defines the legal relations between the provider and the customer for services provided in a data centre. The customer acknowledges that the entire agreement controls the relationship, including the key topics attached hereto in the specifications. The provider supplies colocation space within the premises building, along with infrastructure such as power supplies, cooling, security, bandwidth, and connectivity to the network and other networks.
IP numbers are assigned per the specs, remain the provider's exclusive property, and may be changed as service requirements evolve at the company's discretion. Service levels and any service level agreements are referenced in the specifications.
The initial term is twelve months with an automatic renewal term of six or twelve months unless canceled with thirty days' written notice. Terms of payment are COD unless credit approval is granted; then invoices are billed net 10 business days from the due date. Full payment is payable without other deductions. Customer's failure to pay or default hereunder can lead to such termination after such notice, at which point obligations of such party are governed by the provisions set in the agreement.
Customers receive 24/7 escorted access to the site; unescorted access is prohibited. The customer is solely responsible for the actions of employees, agents, contractors, or other persons admitted. Support options are defined in the specs and may, at the customer's request and expense, include monitoring or remote hands during or outside normal business hours to assist with installation, testing, materials handling, replacement components, and development needs.
The provider may perform maintenance, including routine maintenance and Unscheduled or Emergency Maintenance. Advance notice via email or telephone is provided for planned work, and commercially reasonable efforts are undertaken to minimize any full or partial interruption. These practices support business continuity, capacity planning, redundancy, and the continued operation of customers' equipment and websites even when traffic or usage spikes.
Warranties are limited; the provider disclaims broad warranties, including but not limited to merchantability, and limits liability for such damages to a pro-rata credit for downtime. Customer data and such equipment are maintained at the customer's sole risk; the customer must maintain insurance and hold harmless the provider against such a claim arising from the customer's activities. Confidential information, trade secrets, and intellectual property rights are protected; reverse engineering is prohibited.
Transfers require consent, and sales of all or substantially all of a business require advance notice. Disputes are handled under applicable law in a court of competent jurisdiction and bind the parties hereto and their respective successors.
Use cases include managed service providers colocating server hardware for reliability, SaaS teams needing business continuity and compliance, and retailers migrating high-traffic applications to increase reliability and reduce equipment costs while the provider coordinates installation and improvements.
Proposal Kit can help organizations implement agreements like this by streamlining document assembly, producing automated line-item quoting for equipment and additional services, and using its AI Writer to build supporting documents from its extensive template library, helping teams create accurate, consistent contracts with ease.
Beyond the essentials, business teams should be aware of how discretion, notice, and risk are handled. Providers may reassign IPs or modify processes at their sole and absolute discretion where permitted, while acting in good faith and within reasonable control. Notices about service changes, material alterations, or termination dates are best sent in writing, often with a return receipt requested, so each party is clear on obligations.
If construction changes, relocation within facilities, or such relocation is needed, the parties typically coordinate in a manner that will not adversely affect operations; any shipping, installation, or removal of other hardware may occur at the customer's expense. Many customers also plan for force majeure or even eminent domain events that could temporarily limit the provider's ability to perform services rendered, with appropriate limitation of liability and allocation of risk.
Risk management extends to insurance and indemnity in relation to personal injury, bodily injury, and property damage on site. Contracts often name additional insured and indemnified parties and adopt zero-tolerance safety policies. Confidentiality, acceptable use restrictions, and export and regulations compliance protect the environment, data storage, and communications.
Customers remain liable for their usage, taxes, and demands tied to revenue they generate using the services, to the extent expressly stated in the agreement. When complaints arise or a violation is alleged, parties should contact each other immediately, cooperate, and, where appropriate, arrange such a settlement on behalf of the entity with proper authority. If a default occurs during an unexpired term, note any cure period, any modification or alteration limits, and how the customer's continued presence, registration, and lease rights are handled. Day-to-day details often involve the ability to connect, store, install, distribute, and carry traffic; providers coordinate resources, suppliers, and affiliates to deliver value across a wide range of operational topics and circumstances, direct or indirect, incidental or foreseeable.
Proposal Kit helps teams write and assemble these additional terms with accepted templates, automate line-item quoting for equipment, shipping, and relocation services, and use its AI Writer to create consistent clauses on notices, insurance, confidentiality, and compliance. This gives organizations a practical way to implement commitments, coordinate processes, and document the full force of the agreement with clarity.
Additional considerations for the customer hereunder include how pricing and operations reflect the customer's usage patterns. Power draw, cross-connects, and remote hands are factors in fees; documenting this process with clear metering and reports can benefit both parties by aligning charges to actual consumption. The customer's obligation to pay can, in many agreements, include interest on late balances and fees for extra services, and acceptance criteria should be intended to tie to measurable service outcomes.
Operational rigor matters. Define an inspection and acceptance workflow for new installs and moves so any work is deemed accepted after a reasonable inspection window unless objections are raised in detail. With respect to site safety and building rules, providers may require a permit for deliveries or activities that could disrupt the environment, and parties should be advised of any restrictions well in advance. If a party is unable to perform due to constraints beyond reasonable control, prompt notice helps protect business continuity.
Global operations add complexity. Teams operating across the world should plan for country-specific regulations that affect shipping, storage, export controls, and data handling. Contracts can clarify which entity has authority for compliance tasks and who is capable of taking required mitigation steps if a rule change would adversely affect services. The foregoing discipline shows commitment to resilience: define who coordinates what, when changes occur, and how exceptions are handled so service remains predictable throughout the term and any renewal.
These additions make colocation engagements clearer and more durable by aligning expectations on consumption, acceptance, and compliance while preserving operational agility.
How do you write a Web Server Colocation Hosting Contract document? - The Narrative
COLOCATION 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 is to set forth a long-term arrangement under which Company will provide Colocated Web Hosting and related services to Customer. "Colocation Space" shall mean the physical space that the Server Equipment occupies. "Premises" shall mean the physical structure or dwelling in which the Colocation Space exists.
"Server Equipment" shall mean all Customer-provided Servers or related equipment transferred to Company under this Agreement. "Connectivity" shall mean a connection between Server Equipment and the Internet that allows for the transmission of Data. "Data" shall mean all information, graphics, email, files, or any other objects, existing now or in the future that can be transmitted to, through, or from Server Equipment.
"Unscheduled or Emergency Maintenance" shall mean all repairs, upgrades, maintenance, or tests that are not scheduled or about which Customer has not received prior notification.
In consideration of the mutual covenants set forth in this Agreement, Customer and Company hereby agree as follows:
Services
Subject to the terms and conditions of this Agreement, Company will provide Colocation services for Customer subject to the following terms:
Length of service
Customer agrees to minimum 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.
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.
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 Agreement revisions and price changes.
Renewal fees for the following Term will be automatically invoiced to Customer's account.
Provisioning and Colocation Space
Company shall provide all accommodations relating to the operation of the Server Equipment, including electricity, premises security, bandwidth and connectivity to the Internet. The type of connectivity and level of service shall be set forth in the Specifications, attached hereafter as Exhibit B.
Access to Colocation Space
Customer shall have access to Colocation Space 24 hours a day, 7 days a week. All access is granted in accordance with Company's Data Center Security and Physical Access Policy, attached hereafter as reference any internal policy documents. Customer shall bear sole responsibility for any and all actions of Customer's employees, contractors, customers, authorized vendors, representatives, or any and all escorted persons. Customer shall not allow unescorted persons access or entry to the Colocation space at any time.
Support Services
Support options and related services shall be determined by the Specifications, attached hereafter as Exhibit B.
Uptime Guarantee
Performance expectations and guarantee of uptime and availability shall be determined by the Specifications, attached hereafter as Exhibit B. Allocation of Internet Protocol Addresses. Company shall assign or otherwise provide to Customer Internet Protocol Addresses (hereafter referred to as IP Addresses or IPs) pursuant to the Specifications. IP Addresses assigned or provided to Customer are temporary designations and Company reserves the right to change or reassign IP addresses as needed.
IP addresses shall remain the sole property of Company and are not transferable. End User pricing and Compensation. End User Pricing and Compensation is outlined on Exhibit A, attached, and is subject to change at the sole discretion of Company.
Terms of payment
Terms of payment are COD unless credit approval has been granted to Customer by Company. If credit approval has been granted, credit terms are net 10 days upon receipt of invoice. We reserve the right to revoke any credit extended if payment is in arrears for more than 30 days.
Proprietary information
Proprietary information exchanged here under shall be treated as such by Customer. This information shall include, but not be limited to, the provisions of this Agreement, product and services information, and pricing. Customer further agrees to not decompose, disassemble, decode, or reverse engineer any Company program, code, or technology delivered to Customer, or any portion thereof.
Censorship of Data
Company will exercise no control whatsoever over the content of the information or Data passing through the system or data center.
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 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.
Maintenance
Company may, from time to time, conduct routine repair, upgrades, maintenance or tests on any part of the Server Equipment, dependent or related systems or services located at Colocation Space. Company shall notify Customer of all scheduled maintenance in advance via email or phone. In the event of Unscheduled or Emergency Maintenance, Company shall make every effort to minimize the impact on Customer.
Insurance
Customer shall be responsible for insuring all Server Equipment and shall hold Company harmless from all claims resulting out of damage, fire, or any other casualty or loss.
Transfer
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 its 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 provision 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) 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 hereunder shall be governed by the laws of State State. A failure by any party to exercise or delay 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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