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What is statement of work?

What is statement of work?

A Statement of Work (SoW) is a document that defines the scope, objectives, deliverables, and timeline of a project or contract. It also specifies the roles and responsibilities of the parties involved, milestones, payment terms, quality standards, and performance metrics. 

A SoW is usually created by the client or the contractor after they have agreed on the main terms of the project. It serves as a formal agreement that guides the execution and management of the project.    

What does a Statement of Work contain?

A SoW typically includes the following 8 components: 

  1. Background: This section provides the context and background information of the project, such as the problem statement, the business need, the vision, and the goals
  2. Scope: This section defines the specific scope of work that the contractor will perform, including the tasks, activities, deliverables, and milestones. It also outlines the exclusions, assumptions, and constraints that may affect the scope
  3. Schedule: This section describes the timeline and schedule of the project, including start and end dates, deadlines, and dependencies. It also indicates the frequency and format of the progress reports and meetings
  4. Budget: This section details the budget and payment terms of the project, including total cost, payment schedule, invoicing method, and acceptance criteria
  5. Quality: This section defines the quality standards and requirements that the contractor must adhere to, such as the specifications, testing methods, quality assurance process, and quality control measures
  6. Roles and Responsibilities: This section identifies the key stakeholders and their roles and responsibilities in the project, such as the project manager, project sponsor, project team, and project steering committee. It also clarifies the communication channels, escalation procedures, and decision-making authority
  7. Risks and Issues: This section identifies the potential risks and issues that may arise during the project, such as the technical challenges, resource constraints, regulatory changes, and market fluctuations. It also describes the mitigation strategies, contingency plans, and risk management process
  8. Terms and Conditions: This section specifies the legal and contractual terms and conditions that govern the project, such as the confidentiality clauses, intellectual property rights, liability limitations, and dispute resolution mechanisms 

 

Why use Statement of Work?

A SoW is an essential document that helps ensure the success of any project or contract. By clearly defining the scope, objectives, deliverables, and timeline of the project, it sets the expectations and obligations of both parties and reduces the chances of conflicts and confusion.  

A well-written SoW can ensure productivity, prevent unexpected costs, avoid misunderstandings or disputes, minimise delays, and ensure that the project meets the expectations of both parties. 

A SoW also helps monitor and control the project performance and quality and facilitates the evaluation and closure of the project. 

Statement of work management at Comensura

Our Statement of work management solution, backed by a dedicated team, leverages our powerful VMS c.net to give you greater visibility, control, compliance and governance from your projects and services spend. 

Find out more 

 

People also asked

A Statement of Work is usually drafted by the project manager and is most often the first formal documentation that a company will receive when bidding on the work, so it is vital that it contains all the key information including timescales, measurable outcomes, and specific requirements.

All projects require a Statement of Work that is unique to the needs of the work, but in short it should include all the specifics of that engagement. Most Statement of Works will need to include the scope of work, the deliverables required, time and resources, payment terms, client services, and any relevant terms and conditions.

Yes, but a modifications should follow a formal change request process, and these changes will most likely impact timelines, costs, or other project elements. Documenting these changes ensures that transparency and accountability is maintained at all times. 

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