Delivery Guides

What to Put in a Delivery Service Agreement: A Checklist for Long-Term Courier Contracts

A long-term delivery agreement should state what is delivered and where, what “on time” means, how the price is built and when it can change, who is responsible when something goes wrong, and how either side can end it. Written clearly, it is a shared map. Written vaguely, it is a dispute waiting to happen.

A practical checklist, not legal advice

This is a plain-language checklist for the business conversation with a courier. Have a lawyer review the final agreement before you sign it.

The short version

  • Define the work (route, stops, days, windows, handling) before you discuss the price.
  • Define “on time”, and how it is measured and reported.
  • Price the volume you expect, and write down how peaks, extras and reviews work.
  • Say who is responsible for damage, loss and delay, and how a claim is made.
  • Set the term, the renewal and the notice for both sides, with a review point partway through.

Start with the work, not the price

Most disputes about delivery agreements are really arguments about what the work was. Pin it down first: the pickup point and times, the stops or delivery area, the days, the windows, what is carried and how it must be handled. When that is clear, price and service levels have something to attach to.

The twelve clauses worth checking

ClauseThe question it answersA vague version looks likeA clear version looks like
1. ScopeWhat exactly is delivered, from where, to where?“Delivery services as required.”Pickup point and times, stops or area, days, windows and handling needs.
2. Service levelsWhat counts as on time, and how is it measured?“Reasonable efforts to deliver promptly.”A defined window per stop, a measurement method and a regular report. See last-mile delivery KPIs.
3. Volume and peaksHow much is expected, and what if it changes?No mention of volume.An expected range, how extra stops are handled and how peaks are flagged ahead of time.
4. Price structureHow is the price built?A single figure with no breakdown.A base, a variable part, minimums and what is included. See how courier delivery is priced.
5. ExtrasWhat triggers an additional charge?“Additional fees may apply.”A list (waiting time, repeat attempts, after-hours, oversized items) and how each is calculated.
6. Price reviewWhen and how can the price change?“Rates subject to change.”A set review date or trigger, a notice period and the basis for any change.
7. Term and renewalHow long does it run, and what happens at the end?An automatic renewal buried in the fine print.A stated term, a renewal rule and the notice needed to stop it.
8. ExitHow can each side end it?Termination “at the courier's discretion”.Notice for both sides, termination for cause and a short transition period.
9. ResponsibilityWho is responsible for damage, loss and delay?Silence, or a blanket exclusion.Who is responsible, any declared-value limit, the claim window and the process. See damaged or lost deliveries.
10. Proof and reportingWhat proof of delivery and which reports do you get?“Proof available on request.”A photo and timestamp on every drop-off, visible to you, plus a report on a set schedule. See proof of delivery.
11. People and accessWho runs the route, and how is access handled?No mention of substitutes.A regular driver where possible, what happens when that driver is away, and how codes and keys are handled.
12. Communication and dataWho do you call, and how is customer data handled?A general inbox.A named contact in dispatch, an escalation path, and how customer information is used and protected.

Service levels: define on time before you measure it

“On time” is only useful if both sides mean the same thing by it. Decide whether it means within the delivery window, by the end of the day or by a promised hour. Decide how customer-caused misses, such as nobody home or a wrong address, are counted. Then agree how it is reported: how often, in what format, and who reads it. Without that, a monthly figure can hide a bad week.

Volume, peaks and the price that follows

Price and volume are linked. A route priced for steady volume works while the volume is steady, so the agreement should say what happens when it is not. Common approaches are a volume band with a base price inside it, a rate for stops above the band, and an agreed way to plan for known peaks such as the September-to-January season. Write down when you will tell the courier about a peak, and how far ahead.

Responsibility when something goes wrong

This is the clause most people skip until they need it. It should say who is responsible for damage, loss and late delivery, whether there is a limit tied to the declared value of the goods, how soon a claim must be made and what evidence is needed. When a delivery is damaged or lost walks through how claims work and how to prepare for them. If you ship high-value goods, check your own insurance as well.

Term, renewal and exit

A term gives the courier the confidence to plan capacity. A renewal rule stops the agreement from lapsing by accident or renewing by accident. Look for the initial term, how renewal works, the notice each side must give, what happens to routes in progress when it ends, and a review point partway through the term where price and volume can be revisited.

Red flags in a draft

Try a route before you commit

If you can, run the route for a few weeks before signing a long term. A trial shows how the courier handles your stops, your windows and your exceptions, and it gives you real numbers to put in the agreement. Seven questions to ask before choosing a courier suggests how to run one.

What a recourier.ca agreement covers

On the dedicated routes page, recourier.ca lists what a long-term agreement covers, so you see it on paper before you commit:

Frequently asked questions

What should a courier service agreement include?

At a minimum: the scope of work, the service levels and how they are measured, the price structure and how it can change, the volume and peak arrangements, who is responsible for damage, loss and delay, the term, renewal and notice, and how you will see proof and reports.

How long should a delivery contract be?

There is no standard length. Match it to how stable your volume is. A longer term suits steady volume and can support a better price. Ask for a review point partway through so price and volume can be adjusted.

Can I change the route during the contract?

You should be able to. Ask how changes are requested, how much notice is needed and whether a change affects the price.

Do I need a lawyer to review a courier agreement?

It is a good idea before signing any multi-month commitment. This checklist helps you ask the right questions, but it is not legal advice.

What is the difference between a service agreement and a quote?

A quote states a price for a job. An agreement sets the terms of an ongoing relationship: the work, the service levels, the price structure over time and what happens when something goes wrong.

Tell us your route, your volume and when your peaks fall, and we will lay out a long-term agreement structure you can review on paper.

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