What Is an Administrative Services Agreement?

To begin with, what even are administrative services? These are the type of services that are concerned with the personnel in the office, how the payroll is managed, how the property is managed, the benefits that the employees receive, the financial planning aspect of the company, facilities management, contract management, and many more. Administrative service managers often plan and coordinate these types of services/activities in order to make sure that they run without any hitches.

An administrative services agreement is a legal document that is used by a company to hire/outsource administrative service duties to a third-party company in exchange for compensation. Outsourcing this sort of labor is more cost-effective for some businesses than hiring a full-time individual or team to perform the tasks. When a business decides to employ a third party to provide administrative services, having this agreement in place protects both parties and ensures that both the company and the entity performing the duties understand their rights and obligations.

Basic Parts of an Administrative Services Agreement

Listed and discussed below are the common parts you may find in an administrative services agreement document; Some parts may not be listed here since they may be unique depending on the parties involved in the agreement.

Definition of Terms. This part of the administrative services agreement shall define all the complex and technical jargon that may be present in the document. This is necessary to avoid confusion throughout the duration of the agreement or when disputes may arise.Appointment. This part of the agreement document describes the name of the company that is being hired as an outsource to perform the administrative services, and shall also state in writing that the company is being appointed, accepts such appointment, and agrees to perform the services for the main company.Representations and Warranties. Basically speaking, representations and warranties are assertions or assurances given by the parties involved (in this case, the main company and the third party company that is being outsourced to do the administrative tasks) to the agreement.Delivery of Documents. This part of the agreement should clearly state that the main company should deliver all the necessary documents needed to carry out the agreement to the third-party company. The documents include the bylaws, the resolutions that authorize the agreement’s execution, the registration statement, the prospectus, and any other documents that disclose any risks that may be involved.Duties. This section should clearly state the duties of all the parties involved (the main company and the outsourced third-party company) during the agreement.Allocation of Expenses. This section of the agreement says that, unless otherwise mentioned, the main firm will pay all fees and expenditures arising or generated in conjunction with the fulfillment of this agreement. Taxes, brokerage fees, management and administration fees, and insurance premiums are all examples of expenses. It further stipulates that the third party company will be compensated for any reasonable out-of-pocket expenditures spent in connection with the execution of any administrative services throughout the agreement, such as phone, photocopying, overnight courier and messenger fees, mailing, and so on.Indemnification. In an agreement, indemnification provisions shield one party from obligation if a third-party or third entity is damaged in any manner. It is a contractual provision that requires one party to recompense another for losses or damages which have transpired or may occur in the future. In the case of the administrative services agreement, the third-party company is not liable for any expenses, liabilities, or claims arising out of their performance throughout the agreement, apart from those done with their own bad faith or negligence.Compensation. The compensation clause is crucial for both parties in the agreement, in this example, the primary firm, and the third-party company. This provision specifies the sum to be paid by the principal company for employing the administrative services of the outsourced third-party company. It is preferable to pay the remuneration in installments, or on the basis of the accomplishment of certain tasks or deadlines, as this ensures the successful completion of the task.Term of the Agreement. This clause of the administrative services agreement outlines how long the agreement is going to last. It also states that the agreement may be terminated by the main company anytime if the third party commits a material breach of obligations and fails to resolve it within a given period of time. It also states that upon the termination of the agreement, the third party shall return to the parent company every type of information that may be deemed confidential by the main company at the expense of the main company.Force Majeure Clause. The administrative services agreement’s force majeure clause states that neither party is responsible or liable for any inability or delay in performing its obligations under this agreement that is prompted, directly or indirectly, by situations outside of its effective control, such as acts of war, system failures of hardware and software utilities, violent natural events, sabotage, labor disputes, and so on. It also emphasizes that all parties concerned must make every attempt to recommence their services as quickly as possible given the circumstances.Assignment Clause. The assignment clause of this agreement states that this agreement shall extend to and be binding upon the parties involved, as well as their respective assignees. However, it also states that the agreement shall not be readily transferable by the parties involved without the written approval of the other.Severability Clause. This element allows certain parts to remain in effect even if others are illegal or unenforceable. In the case of the administrative services agreement. if any provision in or obligation under this agreement is found to be invalid, illegal, or unenforceable in any jurisdiction, the validity, legality, and enforceability of the remaining provisions or obligations will not be affected or impaired in any way. and if any provision is found to be inapplicable to any person or circumstance, the other provisions are separate and will still be applicable to all other persons and circumstances.

Skills Needed for an Administrative Job

Listed below are some of the different skills that a person must have if he/she is to work in an administrative job:

Steps in Starting an Administrative Company

Nowadays, companies, no matter how big they are, are being given tasks that easily fill up their daily schedules, and oftentimes there are tasks that they simply can’t insert. This results in them hiring an outsource company to do their administrative services for them. If you’re feeling that you’re up to the task, here’s how to start an administrative services company so that you may offer your services to those who need them.

  • 1. Build Yourself Up

    This is the first important step that you need to do. Here, you need to create a list that consists of your knowledge, skills (technical and personal), and abilities. This is important since it helps you determine what types of administrative services you can best provide and it also helps you choose the target market that you can serve.

  • 2. Outline Your Ideal Customer

    After building yourself up and making a list of your skills, this step will then follow. What you need to do in this step is to create a buyer profile, which has the purpose of outlining who your ideal customer/customers will be. In outlining a buyer profile, keep in mind that you should include information such as the different industries you’d like to work in, the scale of the company which will be a good fit for your services, the location, and lastly, the type of services that the client may request.

  • 3. List Your Services

    After identifying your target market and outlining your ideal customer, it’s time to list the services that you can provide to them. In this step, Make a list of the services you could offer to your potential customers and assign an appropriate fee to each. General administrative services such as electronic filing, composing correspondence, booking trips, scheduling appointments, and buying supplies are examples of services you can give. If you have skills in marketing or finance, you may expand your portfolio by offering services such as financial statement preparation or marketing copywriting.

  • 4. Build Your Company

    After providing a list of services that you can offer, it’s now time to build your company. What does it mean? In this step, you may employ a graphic designer to build a logo for your administrative service company. Give the graphic designer information about your company so that your logo matches your entire brand. Then, register a website name and sign up for web hosting for your company. Your website should include content such as your company’s name, logo, the services you provide and their prices, information about your history and experience, and contact information.

  • 5. Advertise Your Company

    After building the basics of what your company is going to look like, proceed to this step. What needs to be done here? Well, this step focuses on advertising your administrative services company. There are different ways that you can advertise. You may promote your services online by acquiring ad space on websites and blogs that your target market visits for news and ideas. When advertising online, it is a good idea to use various social networks to market your services on social media. To entice local clients, you may also promote offline by joining corporate and networking organizations in your region. You may also organize seminars to provide information on all your firm has to offer.


What is the role of a company administrator?

A company administrator is essential for the efficient operation of a business since they give office assistance to either a person or a team. Their responsibilities might include answering phones, greeting and directing guests, word processing, generating spreadsheets and presentations, and filing paperwork. Their responsibilities may also include hiring new employees, leading department meetings, and engaging with higher management in order to implement new policies and procedures in day-to-day operations.

Is technical literacy important in an administrative job?

Yes, it can be important. This is because right now, administrators are increasingly reliant on computer and technical expertise to fulfill responsibilities. When applying for an administrative position, you should make sure you understand the fundamentals, such as how to operate email and chat facilities, how to read, update, and construct a simple spreadsheet, and how to utilize office suite software. You should also keep in mind that Each position will most certainly need you to learn how to utilize its very own software, databases, devices, or other sorts of technology. Being technically literate will help you in this process.

What is the role of an administrative assistant?

The role of an administrative assistant is to aid managers, other workers, and office visitors by performing a wide range of activities to ensure that all transactions between the business and outsiders are good and productive. Administrative coordinators and administrative experts are also examples of other terms that may be used for these individuals.

With the consistently busy world of the businesses that they face nowadays and the vast number of tasks that they need to carry out within a certain period, it is only natural and more cost-effective to outsource some of these tasks to a third-party company especially if the tasks are administrative services. Having an agreement in place is a guarantee that all their interests will be protected in case of a dispute. In this article, there are various samples of administrative service agreements that are readily available for you to use as an example if you need them.