A service acceptance clause should explain what the supplier must deliver, how the customer checks it, who can approve it and what happens if it falls short. Before signing, connect that process to payment, correction of defects and changes to scope. A clause saying only “payment on completion” leaves too much room for disagreement about what completion means.
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What should count as a completed deliverable?
Start with the actual business outcome. For a website project, distinguish a design mock-up, a working test site and a live site with administrator access. For a consultancy assignment, specify whether the deliverable is a report, implementation support or both. Describe the agreed files, format and supporting material rather than relying on a broad project name.
Separate defects from new requests. Correcting a broken feature that was included in the scope is different from adding a feature the customer later decides it wants. The agreement should explain how that distinction will be recorded, priced and approved.
Five points to agree before paying a deposit
- The acceptance test. Identify measurable requirements, a demonstration or a review checklist that both sides can use.
- The reviewer. Name the role authorised to approve the work and a substitute if that person is unavailable.
- The review period. Agree a realistic period for testing, taking account of staff availability and dependencies.
- The rejection notice. Specify how the customer reports a problem, including the evidence and the requirement that was not met.
- The correction process. State who fixes defects, how resubmission works and how unresolved disagreement will be escalated.
Does silence mean that the customer has accepted the work?
Check for a deemed-acceptance provision. A supplier may propose that a deliverable is accepted if no objection arrives within a stated period. Consider whether that period is workable, what starts it and whether a submission actually reached the correct person. Do not assume silence has the same effect under every contract.
If payment is linked to acceptance, state whether a disputed item holds up the whole invoice or only the affected milestone. Also agree whether the customer may use the work while a defect is being corrected. These are negotiation points for a tailored agreement, rather than universal rules.
A practical example
Illustration: A company hires an agency to build a booking system. The agency sends screenshots and asks for the final payment. The customer expected a working booking flow. A clearer milestone would require access to the test system, successful completion of agreed test bookings and delivery of administrator credentials. The contract could then distinguish those acceptance checks from a later request for an additional payment gateway.
Keep the agreement and sign-off trail together
Retain the signed scope, version history, submissions, review comments, approvals and invoices. Identify the approved communication channel and make sure an employee’s project feedback is not mistaken for authority to approve a price change. The Electronic Transactions Act addresses electronic records, signatures and contracts, but applicability, exceptions and authority still need to be checked for the particular transaction.
When should a lawyer review the clause?
Obtain advice before signing where the project is business-critical, involves substantial advance payments, includes sensitive data or intellectual property, or uses broad deemed-acceptance language. Ask the adviser to read acceptance, payment, termination, ownership and liability provisions together. Improving one paragraph will not resolve a conflicting term elsewhere in the agreement.
Related guides
- Non-Disclosure Agreement (NDA)
- Singapore Director’s Service Agreement: What Every Executive Director and Board Should Know (2026)
- How to Use Digital Signatures and E‑Signatures Safely in Corporate Documentation
Official sources
How Raffles Corporate Services can help
If you would like assistance with contract drafting or review, email [email protected] or WhatsApp +65 8501 7133. We can coordinate relevant corporate services, tax advice and, where needed, legal assistance from advisers at associated law firms. Legal advice and representation are provided by those advisers. This article is general information and does not replace advice on your circumstances.