What is a statement of work?
A statement of work, also called a “scope of work,” is a contractual document that describes in as much detail as possible what a project does.
The Project Management Body of Knowledge Guide (PMBOK) defines a statement of work as “a descriptive description of the products or services to be provided under a contract”.
Digital Project Manager describes this as “a contract between a client and an agency, contractor, or his provider of services that defines what is and is not included in a project.” Project-based company and customer. It is important to note that the statement of work is usually Appendix A of the terms and conditions and should be taken seriously.
What a Statement of Work Is NOT
The term “SOW” is sometimes misunderstood due to the myriad of project-related documents that exist primarily in the business development field. Here are some cases that you should remember and distinguish from others.
Statement of Work and Project Order
These two documents are often confused because they are signed during the kick-off phase of a project. However, the SOW is only part of the project charter process. Additionally, the SOW does not authorize project managers to issue project budgets and project resources, but it does authorize project charters. Unlike project orders, SOWs do not initiate projects.
Service Description and Contract The
Service Description is not a contract per se but is an integral part of the contract and covers all important details of the cooperation and project. While the SOW can be sent to the client for approval, is flexible and negotiable, the contract is the final step in the negotiation process that ties the two parties together.
Statement of Work and Scope of Work
Both terms are often used interchangeably, but there are slight differences between the two depending on the context. A statement of work is a high-level document that defines a project by outlining the mission, deliverables, and success criteria. A scope of work (see project scope) is simply an element used in a statement of work that represents the milestones and tasks for the project team to reach and achieve the project goals.
The Key Elements of an SOW
- After reviewing hundreds of SOW documents and templates, we have compiled a list of these key elements that complete the structure of a successful project statement of work:
Project Objectives
statement of intent to answer a series of important questions. What is the purpose and mission of the project? Why did you start doing it in the first place? How will both parties benefit from the project?
Working Range
This is a special section for specifying what work must be completed in the project, how it will be done, and how long the project will take. General steps and process details should be provided here.
Place and time of execution
Most job descriptions use this section to indicate where the project will take place. This is especially important for global settings. For example, if you and your customer are in different countries and time zones.
Milestone
When projects are long and complex, they are often broken down into milestones (intermediate events to measure progress). Specifying the duration and billable hours for each milestone helps predict the end date of the project.
Tasks
Tasks are well-defined activities to accomplish the milestones and high-level steps described in the scope of work. Here you need to be as detailed as possible so as not to miss any important steps.
Schedule
A key component of the SOW, the schedule is the project timeline for milestones, tasks, and resources throughout the project lifecycle. Depending on the type of engagement you are participating in, your schedule may be postponed to a later date. For example, if you use a mandate agreement to provide ongoing services, there may be less paperwork and, as a result, less scheduling.
Achievements
A complete SOW quantifies the product or service that must be delivered upon completion of the project. Illustrate them and show due dates and deadlines.
Test
Tests, for example, are related to software development specifications. Dedicate to him whether and how the results will be evaluated.
Expected result
This is your and your client’s definition of what success looks like when a project is delivered.
Special Terms and Requirements
Here you specify payment terms and other parts of the project that do not fit into the above categories.
Closed
This will determine how the deliverables will be received and who will provide, review and sign the deliverables. We also handle final administrative tasks, ensuring everything is signed, closed, and archived.
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