Penalties for service level agreements vary from contract to contract. Several parameters of these sanctions should be taken into account in the development of these sanctions. This is: 3) License renewal or support: In accordance with this penalty clause, if an ALS is disgraced, the seller must extend the term of the license or the support provided to the customer. Under these sanction clauses, suppliers may be forced to allow additional time for application, development and maintenance. Service Level Agreement Examples of sanctions are typical sanctions that can occur if a service provider violates the terms of a service level contract to which it has consented. A service level contract is a contract that defines the level of service to be expected from a provider, defines the metrics for measuring that service, and determines penalties for not performing that level of service. Service level sanctions are disciplinary, sometimes monetary, sometimes service-related sanctions that do not exist to save money or harm the service provider, but to ensure that the terms of the contract are maintained. Often, these systems and processes are handled by a third party who specializes in this work and it is recommended that the client and the company be in contact during contract negotiations to eliminate any confusion about the levels of service to be followed and their follow-up. Third-party tools that automatically collect performance data at the service level can also be used.

Measures should be designed so that bad conduct is not rewarded by both parties. If z.B. a service level is violated because the customer does not provide information on time, the provider should not be penalized. Define carefully. A supplier can optimize ALS definitions to ensure they are met. For example, the Incident Response Time measure is designed to ensure that the provider corrects an incident within a minimum of minutes. However, some providers can complete ALS 100% by providing an automated response to an incident report. Customers should clearly define ALS so that they represent the intent of the level of service.