What Is a Statement of Work? Definition & Examples

There’s all the time lots of undertaking administration paperwork to create, get permitted, file and archive. All undertaking paperwork are vital, however the Statement of Work (SOW) is well one of an important as a result of it’s made on the outset of a undertaking and descriptions all the things that wants to enter your undertaking.

Using efficient undertaking planning instruments and a thorough and well-written assertion of work (SOW) will set you as much as efficiently lead a undertaking over the end line on schedule and inside price range.

What Is a Statement of Work (SOW) in Project Management?

The assertion of work (SOW) is a legally binding doc that captures and defines all of the work administration elements of your undertaking. You’ll notice the actions, deliverables and timetable for the undertaking. It’s an especially detailed work contract that defines the phrases and circumstances agreed upon between events and lays the groundwork for the undertaking plan.

The assertion of work (SOW) is one of the primary paperwork you’ll create to put out the whole panorama of the undertaking earlier than you create a undertaking plan and execute it. Because of the good quantity of element required, the prospect of writing one could be daunting. Therefore, let’s break it down into extra digestible elements. Your assertion of work will likely be way more detailed than your job estimate, which is a easier doc that outlines the work that will likely be carried out and the prices related to it.

When you’re writing a assertion of work, it may possibly assist to make use of a assertion of work template as a result of of all the assorted elements of the undertaking that it should seize. Most statement-of-work templates will embrace issues reminiscent of a glossary of phrases defining what you’re referencing within the SOW. There will likely be a place so that you can write the assertion of goal, in addition to administrative data. If you want our assertion of work template, you can too strive our free undertaking administration templates to handle your tasks.

Statement of Work vs. Scope of Work

While they sound the identical, a assertion of work isn’t a scope of work. They are two completely different paperwork. The assertion of work, as we’ve already proven, is a formal doc that particulars the targets of the undertaking.

The scope of work is a component of the bigger assertion of work. In it, the why the undertaking group will ship the outcomes specified by the SOW is described. Therefore, the scope of work is a a lot shorter doc.

What Does SOW stand for In Business and Project Management?

Now that we’ve cleared the distinction between a assertion of work and scope of work, it’s vital to notice that the SOW acronym stands for assertion of work, and never scope of work, which is a element of the SOW. Similarly, the phrases SOW contract, SOW doc and SOW settlement additionally discuss with statements of work in undertaking administration and enterprise.

What Is the Purpose of a Statement of Work (SOW)?

As famous, the assertion of work is a detailed overview of the undertaking scope. It’s additionally a technique to share the undertaking necessities, acceptance standards and cost phrases with those that are engaged on the undertaking, whether or not they’re collaborating or are contracted to work on the undertaking. This consists of stakeholders like distributors and contractors who’re bidding to work on the undertaking.

A SOW contract can also be useful to undertaking managers, because it offers a construction on which the undertaking plan could be constructed on. The assertion of work may even assist to keep away from conflicts within the undertaking. With element and readability, the SOW helps preserve everybody that’s concerned within the undertaking on the identical web page and works to go away confusion to a minimal.

When constructing your schedule, it helps to make use of undertaking administration software program. It could be immensely useful for organizing your duties and assets, because it’s crucial to make an correct schedule at this stage within the undertaking.

Project administration software program also can aid you to create a work breakdown construction (WBS) to zoom into your undertaking scope and establish your undertaking’s actions, deliverables and milestones.

Types of Statement of Work

An SOW could be damaged down into classes. There are three primary varieties, which could be principally outlined as follows.

• Design/Detail SOW: When you’re penning this SOW what you’re doing is conveying to the provider the way you need the work performed. What are the customer necessities that can management the provider’s course of? You can use a necessities gathering template to be sure to collect all of them. These undertaking necessities can run the gamut from high quality acceptance standards and cost phrases to the measurement of supplies. In this SOW, it’s the customer who’s being held answerable for the efficiency as he’s the one directing the undertaking course.
• Level of Effort/Time and Materials/Unit Rate SOW: This SOW settlement an nearly common model and it may possibly apply to most tasks. What it defines is the extent of effort in addition to the supplies and price per unit. It tends to search out use in short-term contracts.
• Performance Based SOW: This is the popular SOW of undertaking managers because it focuses on the aim of the undertaking, the assets and the standard stage anticipated of the deliverables. It doesn’t, nonetheless, clarify how the work is meant to get performed. This permits a nice deal of autonomy on how one can get to an consequence with out requiring a particular course of.

Whatever kind of SOW doc you select, you’ll need to use undertaking administration software program to streamline the method. ProjectSupervisor can manage all data you’re gathering in our checklist view. But our instrument does extra than simply make a fancy to-do checklist like different apps. Our real-time software program tracks your progress and the checklist reveals the share full for every job. You can assign work to your group, set precedence, add personalized tags and way more. See for your self by taking our free 30-day trial right this moment.

How to Write a Project Statement of Work (SOW)

A press release of work is a legally binding settlement between a shopper and a vendor that describes the phrases and circumstances for the execution of a undertaking’s scope of work. There’s a lot of data to explain within the SOW. You can create this by yourself in order for you, however utilizing undertaking administration instruments to verify nothing is overlooked will show useful. You solely have one probability to create your SOW doc, and also you need it performed proper.

Here’s an summary of the steps you’ll must observe to write down your assertion of work:

1. Create a transient introduction to your undertaking.
2. Define the aim of your undertaking.
3. Define your undertaking scope.
4. Create a work breakdown construction to establish your undertaking duties, milestones and deliverables.
5. Create a undertaking schedule to your duties, milestones and deliverables
6. Define undertaking necessities and acceptance standards
7. Define cost phrases and circumstances.

We’ll discover every of the SOW elements concerned on this course of within the part under.

In phrases of writing the assertion of work, you’ll need to be particular with this undertaking doc. You need to make clear the phrases used to make them universally understood. Also, clearly outline who’s going to do what and by what time these duties should be accomplished. Doing this avoids confusion later within the undertaking when you may’t afford any miscommunications or disputes.

Besides writing clearly, it is best to embrace visuals within the SOW. This will assist focus the lens on the assorted elements of the undertaking. Including visuals, be they charts, graphs or different illustrations that will help you make clear the undertaking, will make the SOW settlement extra digestible.

After all of the work you’ve performed to element the specifics of the undertaking, you don’t need to neglect the ultimate, essential step — getting the work signed off. You can’t proceed in the event you don’t have the authority to take action. Or, extra precisely, you may, but it surely may cost a little you the success of the undertaking. Therefore, ensure that these in authority have signed off on the assertion of work.

What ought to be included in a Statement of Work (SOW)?

There are as many elements in a assertion of work as there are in a undertaking, so it’s advisable to make use of a undertaking administration data system that will help you handle all its elements. If you begin by specializing in the elements, you may work your self as much as the entire. For a full understanding of a SOW, first, notice the key elements of the undertaking it addresses.

1. Introduction

Begin with explaining what work is being performed and normal details about the undertaking. Also, who’s concerned within the undertaking? State these events. This will result in a standing provide, which cements costs for services or products bought for the undertaking, and a extra formal contract that goes into better element.

2. Purpose Statement

Start with the large query: why are you initiating this undertaking? What is the aim of the undertaking? Create a goal assertion to guide off this part and supply a thorough reply to those questions, reminiscent of what are the undertaking targets, deliverables and return on funding.

3. Scope of Work

What work must be performed within the undertaking? Note it within the scope of work, together with what {hardware} and software program will likely be obligatory. What is the method you’ll use to finish the work outlined in your undertaking scope? This consists of outcomes, time concerned and even normal steps it’ll take to realize that. You’ll must create a undertaking scope assertion to seize all of the details about your undertaking scope.

4. Where Will the Work Be Done?

The group you utilize must work someplace. The undertaking could be site-specific, at a central facility or some, if not all undertaking group members may work remotely. Either approach, right here is the place you need to element that and the place the tools and software program used will likely be situated.

5. Tasks

Take these normal steps outlined within the scope of work and break them down into extra detailed duties. Be particular and don’t pass over any motion that’s required to provide deliverables and attain the undertaking targets. If you need to, break the duties down into milestones or phases. A piece breakdown construction template can assist.

6. Milestones

Define the quantity of time that’s scheduled to finish the undertaking, from the beginning date to the proposed end date. Detail the billable hours per week and month, and no matter else pertains to the scheduling of the undertaking. Again, specificity counts. For instance, if there’s a most quantity of billable hours for distributors and/or contracts, notice it right here.

Use undertaking administration software program to observe your progress and be sure to’re assembly your milestones. ProjectSupervisor has a real-time dashboard that’s constructed into the instrument, not like different software program that makes you construct your individual. We not solely have a dashboard embedded however do all of the calculations and show the metrics in easy-to-read charts and graphs. Keep up with greater than milestones but in addition undertaking variance, prices and extra.

7. Deliverables

What are the undertaking deliverables? List them and clarify what’s due and when it’s due. Describe them intimately, reminiscent of amount, dimension, colour and no matter could be related.

8. Schedule

Include a detailed checklist of when the undertaking deliverables must get performed, starting with which vendor will likely be chosen to realize this aim, the kickoff, what the interval of efficiency is, the evaluate stage, growth, implementation, testing, shut of the undertaking, and so on.

9. Standards and Testing

If there are any trade acceptance standards or high quality requirements that have to be adhered to, checklist these right here. Also, if there will likely be testing of the product, checklist who will likely be concerned on this acceptance testing course of, what tools is required and different assets.

10. Define Project Success

Note what the sponsor and/or undertaking stakeholders count on as profitable undertaking completion.

11. Project Requirements

List another tools that’s wanted to finish the undertaking and if there’s a obligatory diploma or certification required of group members. Also, notice if there will likely be journey or different undertaking necessities not already coated.

12. Payment Terms

If the undertaking price range has been created, then you may checklist the funds associated to the undertaking, and the way they are going to be delivered, up entrance, over time or after completion. For instance, you may pay after the completion of a milestone or on a mounted schedule, whichever is extra financially possible.

13. Other

There will likely be different elements of the undertaking that aren’t suited to the above classes, and that is the place the place you may add them in order that all the things is roofed. For instance, are there safety points, restrictions round {hardware} or software program, journey pay, post-project help, and so on?

14. Closure

This will decide how the deliverables will likely be accepted, and who will ship, evaluate and log off on the deliverables. Also, it offers with the ultimate admin duties, ensuring all the things is signed and closed and archived.

Statement of Work Example

We’ve been speaking a lot about a assertion of work, however it may possibly assist make the topic extra comprehensible if we’ve a assertion of work instance. Let’s take a have a look at what a assertion of work pattern would appear like in a real-life situation.

Construction Statement of Work
For our assertion of work instance, let’s discover what one would appear like in a development undertaking. We’re not going to enter element, however relatively sketch out a normal SOW and the way it could be constructed across the erection of a generic constructing.

Background

The very first thing you’ll need to do is give the undertaking some context. That is, present a quick profile of your organization. You can speak about its historical past, government group, space of experience and, particularly, spotlight comparable development tasks. Other buildings that you simply constructed could be added right here, and it’s even higher in the event you can present that you simply’ve constructed comparable constructions up to now.

Purpose

Now you’ll need to clarify the why of the undertaking. Why is it being constructed? That’s an important query, however it should result in additional questions. Some of the questions you’ll need to pose and reply are what the deliverables of the undertaking will likely be, definitely clarify the target of the undertaking and what its return on funding (ROI) is. There are different questions, however these are a begin.

Scope of Work

The scope of work is a abstract of the undertaking scope, or in different phrases, all the things that must be performed within the undertaking. You’ll need to checklist all of it, from drawing up plans, to getting the location prepared, preconstruction, constructing the body, drywall, electrical and plumbing, HVAC and all the remaining. Not solely that, you’ll need to element the {hardware} and software program you’ll want. Finally, don’t neglect to incorporate the outcomes, a timeline, period, the steps you’ll take to go from begin to end, and so on.

Location

Obviously, a constructing exists in house. This is the place you’ll title the placement of the construct, the tools that you simply’ll want, together with software program, to get the location prepared for development and something, reminiscent of scaffolding, signage, and so on., you’ll want on website to be prepared to begin development and ensure it’s performed safely and to code.

Project Schedule

You have touched on a timeline, however now you’ll write out a undertaking schedule. It ought to embrace all of the undertaking deliverables, begin and end dates for all of the duties, but in addition the group members, subcontractors, distributors, et al., who’re answerable for the development. You want to incorporate all levels of the undertaking, from kickoff to completion.

Project Deliverables

You’ve talked about deliverables earlier than within the SOW doc, however now you need to checklist all of them and go into better element. This consists of a description of the deliverable and its due date.

Project Milestones

Use milestones to interrupt up your timeline into phases. A milestone can mark the start or the top of a undertaking section. But undertaking milestones also can point out any main deliverable. They are a good instrument to maintain stakeholders up to date and observe progress.

Project Tasks

Tasks are the small items of work that make up the bigger steps of the undertaking scope. They are detailed and picked up inside every undertaking section. Here is the place all the development duties will likely be outlined, from blueprints to elimination of rubbish from the development website.

Success Criteria

It’s vital to have some metric to outline success within the undertaking. Success is, of course, outlined by the undertaking proprietor. But the final contractor wants to have the ability to measure that success and present the proprietor that the undertaking is shifting ahead as deliberate.

Project Requirements

Whatever necessities you could have for the development undertaking are listed right here. These can vary from levels required of expert employees to certifications and code necessities.

Payment Terms

Note the sort of development contract and the way that determines cost for work rendered, reminiscent of in what installment, frequency, supply, and so on.

This assertion of work pattern explains how statements of work are utilized in undertaking administration. You can obtain our free assertion of work template to create a comparable SOW doc that matches your undertaking. In addition to this, we additionally provide dozens of free undertaking administration templates you should utilize to plan, schedule, observe and handle your tasks.

SOW Related Documents

An SOW is one of many undertaking administration paperwork that you simply’ll must handle your tasks. Here are some which might be carefully associated to a assertion of work.

Master Service Agreement

A grasp service settlement is a contract that defines the phrases that can govern future transactions and agreements between two events. The grasp service settlement consists of fundamental phrases and circumstances that may be waived in future authorized agreements.

You can use a grasp service settlement to begin a relationship with a shopper or vendor, after which use an SOW doc for every undertaking.

Project Charter

A undertaking constitution offers an summary of your undertaking. It consists of issues just like the undertaking targets, stakeholders, targets, undertaking scope, amongst others. It’s a very useful doc that will help you write your SOW.

Work Breakdown Structure

A piece breakdown construction it’s a undertaking administration instrument that enables undertaking managers to interrupt down the undertaking scope into duties, deliverables, milestones and undertaking phases. It’s a visible illustration of all of the work wanted for a undertaking.

Request For Proposal

A request for proposal (RFP) is used to hunt out distributors and contractors that may provide a undertaking with services and products. The RFP offers a undertaking overview to present the bidding events a clear description of what is required from them. Once the shopper chooses a vendor, the following step is to present them a assertion of work with extra detailed details about the scope of work.

ProjectSupervisor Can Improve Your Statement of Work

ProjectSupervisor has a suite of undertaking administration instruments that may aid you put collectively a assertion of work (SOW) that precisely depicts the forthcoming undertaking. For starters, you should utilize our Gantt to begin itemizing out all of the duties you may suppose of for the undertaking.

Plan and Schedule Project Tasks with Gantt Charts

The on-line Gantt has the fundamentals of a visible timeline, the power to hyperlink dependencies to keep away from bottlenecks and set milestones. Assign prices to duties and see your deliberate prices for the undertaking or particular phases. But you should utilize the sheet view to solely see the grid, filter the crucial path to know what duties could be skipped if obligatory and set the baseline as soon as your schedule and price range are performed. That means you’ll have the ability to observe in actual time whether or not you’re staying on observe and underneath price range. ProjectSupervisor has the instruments you need and delivers extra performance than the competitors.

As you may see, utilizing our Gantt chart software program can go a lengthy technique to making an correct assertion of work to your undertaking. Accuracy means a lot to stakeholders when it comes time to ship on the work that you simply scoped out.

Keep Track of Progress, Costs and Schedules with Real-Time Dashboards

ProjectSupervisor’s undertaking dashboard tracks progress, prices and workload in real-time so you may monitor the execution of your assertion of work and rapidly decide whether or not your undertaking group is delivering duties on time and on price range. In addition to this, Gantt charts and kanban boards have built-in danger and useful resource administration options for higher undertaking monitoring.

The assertion of work is a foundational doc of any undertaking. Once created and permitted, you’ll need to create a plan and implement it. That’s the place ProjectSupervisor is available in. Our cloud-based undertaking administration software program offers real-time information that will help you handle and observe your assertion of work. Take it for a take a look at spin and see the way it can assist you with this 30-day free trial.