Pitfall 1, Unmeasurable targets

Phrases like 'reasonable response time' or 'good housekeeping standard' are unenforceable. Every KPI must specify a measurement method, the data source, and the responsible party.

Pitfall 2, Uncapped abatement

Service credits without a monthly cap (typically 10–25% of fee) push providers to walk away. Cap, but pair the cap with persistent-breach termination triggers.

Pitfall 3, No exclusions clause

Force majeure, client-caused delay, latent defects and utility outages must be carved out of SLA calculations, otherwise the provider absorbs risk it cannot price.

Pitfall 4, Cherry-picked baselines

Energy KPIs measured against a single 'best month' baseline are unfair. Use a 12-month rolling baseline normalised for occupancy and weather (degree-days).

Pitfall 5, Missing dispute path

Every SLA must specify how a disputed measurement gets resolved, typically a 7-day cure window then escalation to the Steering Committee. Otherwise expect monthly invoice fights.