This clause establishes the timeframe within which a vendor must resolve service failures or performance issues covered by the Service Level Agreement (SLA). It specifies response times and resolution deadlines—for example, "critical issues must be resolved within 4 hours" or "non-critical issues within 48 hours." The clause matters because it creates enforceable obligations with measurable standards, allowing you to hold the vendor accountable for service quality. Without clear resolution times, disputes arise about whether the vendor has performed adequately, and you lose leverage to demand remedies (credits, penalties, or termination rights) when service falls short.
Ensure resolution times are realistic but ambitious—they should reflect your actual business needs and the vendor's demonstrated capacity. Distinguish between response time (acknowledgment of the problem) and resolution time (actual fix), as these are different commitments. Build in tiered response levels based on severity (critical/high/medium/low), and confirm the vendor has adequate staffing and escalation procedures to meet these commitments. Include a termination right if the vendor repeatedly misses resolution deadlines, and define what "resolution" means precisely (e.g., system restored to full functionality, not merely "investigated").
Frequently Asked Questions
What does this clause mean in simple terms?
This clause establishes the timeframe within which a vendor must resolve service failures or performance issues covered by the Service Level Agreement (SLA).
Why should I care about this clause?
It specifies response times and resolution deadlines—for example, "critical issues must be resolved within 4 hours" or "non-critical issues within 48 hours." The clause matters because it creates enforceable obligations with measurable standards, allowing you to hold the vendor accountable for service quality.
What are my options?
Without clear resolution times, disputes arise about whether the vendor has performed adequately, and you lose leverage to demand remedies (credits, penalties, or termination rights) when service falls short.