Assessment

Strategic Project
Management
MBA641 – T2 2019

Statement of Work (SOW) - PHL

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Table of Contents
Introduction - PHL.....................................................................................3
Statement of Work....................................................................................4
Background............................................................................................4
Project Scope.........................................................................................4
Work Requirements...............................................................................5
Schedule/Milestones..............................................................................6
Pricing....................................................................................................7
Acceptance Criteria................................................................................7
Acceptance............................................................................................9
Bibliography............................................................................................10

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Introduction - PHL
PHL is a construction company from Australia with a strategic plan
focused in customer service and marketing. To achieve their objective, the CEO
has approved a new project for a website redevelopment, including customers’
feedback, a better user-friendly interface, industry information, company’s
current and new developments, etc. The new website must facilitate the
interaction with clients, developing tailored solutions for construction.
The statement of work (SOW) is a document that will capture and define
all the project’s aspects, containing activities, timetables and deliveries. It must
include all details involved with the project as it lays the groundwork for the
project planning. [ CITATION Lan18 \l 1046 ]
The SOW must contain the following elements:
 Organization’s strategic plan;
 Business and/or project’s requirements;
 High level of detail in product scope and not the full implementation
details [ CITATION CHU17 \l 1046 ].
The following SOW will describe the scope of work required to complete
this project.

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Statement of Work
Date: 12/08/2019
Project Name: PHL Website Redevelopment
Prepared by: Caio Lapa

Background
Pashendale Holdings Ltd has approved a new website redevelopment
project that aims to enrich the website’s content to improve the company’s
interaction with their customers. Its new features must include:
 Current and new developments’ information;
 Client’s testimonials;
 Company’s news;
 Industry information;
 An interface that is either user-friendly and simplified.
The company doesn’t have an IT department and the implementation,
design, testing and staff training for the new website will be outsourced.
Therefore, this scope of work will include all the planning, implementation,
execution and training but it will exclude any work on the site’s internal intranet.

Project Scope
The scope is the process where a project must be prepared and defined
before execution. This process will help with the decision whether the project
should proceed or not [ CITATION Moh13 \l 1046 ]. A clear and objective scope
can relieve the potential for budget overrun and a poor scope might lead to
further expensive changes, rework, delays and even project failure [ CITATION
Ass06 \l 1046 ].
The scope for this project includes all planning, implementation,
execution and training, but it does not include any work on the internal intranet
website and that is the reason why the chosen contractor for this project must
be aligned with PHL to ensure they have right resources for designing, testing,
building, implementing and capable for PHL employee’s training on the new
feature. The new contractor is also required to present a project plan containing
all phases planned to be reviewed and approved by PHL during the planning
phase.

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It is considered a vital task to define a good project scope using input

from all stakeholders, so that the project can be adequately carried out in this
early stage. This task should be performed in order to avoid further changes
that might affect the project’s performance [CITATION Gib \l 1046 ].

Work Requirements
One of the leading causes to a project’s failure is a bad/lack of
management during the set of work requirements. In order to reach the
objectives of a project, the work requirements are the capabilities that the
product must meet, so that the project is successful. The work requirements
must be detailed and understood by all involved stakeholders. The developers
must understand it very well and clear, so that they’d be able to develop a
solution [ CITATION Kum06 \l 1046 ].
In case of outsourcing the development of a product, the work
requirements definition must be an integral part of the SOW [ CITATION Ker03 \l
1046 ].
For a successful completion of the project, the following tasks must be
done:
 Planning phase:
o The contractor must present to PHL a detailed project plan
including schedule, structure of work breakdown, and
planning for testing, implementation, training and transition
plan;
o The project plan must be reviewed and approved by PHL.
 Definition and Design phase:
o Contractor and PHL must work together to set requirements
and establish metrics;
o Create a new design for the website based on the
requirements set;
o Develop a design proposal to be reviewed and approved by
PHL;
o Once the design is approved, all coding must be done;
o PHL must be provided with a clear and detailed testing plan;
o Include all the agreed content on the redesigned website;
o Testing conducted in both the new contractor’s iLab and in a
limited beta release;

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o Identify and fix issues with the website and coding during the
testing;
o A compiled testing report must be presented to PHL to be
reviewed and approved;
o Written status reports must be presented to PHL during
weekly meetings;
 Implementation phase:
o The redesigned website must be implemented on servers at
PHL;
o 24x7 support must be provided by the contractor until the end
of the project;
o Training according to plan must be provided for PHL staff;
o Written status updates must be presented in weekly meetings
 Conversion phase:
o All documentation related to the approved project plan must
be provided;
o A project closure report must be presented to be reviewed
and approved by PHL;
o Contractor must complete the project requirements checklist
showing that all tasks were concluded;
o The 24x7 website support will be concluded at 11:59 pm at
the project’s final day;
o The weekly meetings must be also held during the
conversion phase with written status updates.

Schedule/Milestones
Milestones are tasks without durations that are supposed to show
important achievements in a project. They represent a detailed set of events
that incrementally build up until the project is concluded. They represent a way
to know if the project is advancing [CITATION Bun17 \l 1046 ].
Milestones can also be defined as control stations on a project, a good
opportunity show the project moving in the expected direction to all involved
stakeholders. They allow the company to assess the project’s performance
[ CITATION And06 \l 1046 ].

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The following list shows the schedule for the project:

Task Finish Date
SOW Release 6/09/2019
Contractor selection review process 27/09/2019
Project kick-off 4/10/2019
Website design review 25/10/2019
Website implementation review 15/11/2019
Implementation completed 6/12/2019
PHL employees' training completed 13/12/2019
Project completion review 18/12/2019
Project closure 24/12/2019

Pricing
The project manager’s main responsibility is to execute a project
successfully within time, quality and budget standards. While quality and time
should be considered with equal importance on the project’s life cycle, nothing
will move forward without a well-planned budget [ CITATION Tea19 \l 1046 ].
The following table shows the estimated pricing for the different project
phases with a cost structure on a fixed fee basis:
Project Phase Price
Planning AUD 30,000.00
Design AUD 145,000.00
Implementation AUD 60,000.00
Conversion AUD 30,000.00
TOTAL AUD 265,000.00

Acceptance Criteria
The acceptance criteria represent a few essential requirements and/or
conditions that must be achieved within the project’s final deliveries. These
requirements must be outlined in specific detail before the project start date, so
that all stakeholders are aware of the terms. In case of not meeting or partially
meeting this criteria, the final deliverables can be refused due to outright of

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acceptance or, in some cases, an acceptance pending some modifications to

better attend the acceptance requirements can be done [ CITATION Pro08 \l
1046 ].
Some clear and detailed acceptance criteria would help the project team
in different ways, including:
 Setting client’s expectations involving the final product;
 They can measure, achieve and prove to the clients the project is
done;
 Client’s formal approvals on the deliverables;
 It will protect the company regarding to issues such as payment’s
failure from clients [ CITATION Sim19 \l 1046 ].
For this project, the acceptance criteria must be aligned with the
following requirements:
 The Chief Marketing Officer (CMO), Senveasna Naveen, will be in
charge of accepting all deliverables related to the chosen website
design contractor;
 The CMO together with three advisors will be responsible of
ensuring each task related to the project has been successfully
completed;
 At the end of each phase described in this SOW, the contractor
should provide a report for the CMO’s review and approval;
 The CMO must approve the project phase completion before
starting the next phase or advise the contractor in writing on the
project’s remaining tasks that are overdue;
 Once the project is completed, the contractor must provide a
detailed project closure report and a checklist with all the project
tasks. Once the CMO approves and sign off the closure report, it
will represent that PHL is aware and agree that all project’s
deliverables have been done and the contractor met all the
imposed requirements;
 In case of any issues or disagreements arisen between PHL and
the chosen contractor over the project tasks’ completion or any
other phase, it should be referred to both organisations’ contracting
officers for further review and discussion.

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Acceptance
A formal signoff is critical for the SOW in order to protect both sides in
the future. This signoff ensures the following items:
 All deliverables are known and accepted by the company and the
contractor;
 Both sides are aware of all payments due to project delivery;
 Avoid further issues related to any deliverables as it is documented
and it works as a form of protection [ CITATION Bra19 \l 1046 ].
Pashendale Holding Ltd (PHL) Chosen Contractr
Company name Company name

Caio Lapa
Full name Full name

Mr.
Title Title

CHL
Signature Signature

12/08/2019
Date Date

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Bibliography
Andersen, E. S., 2006. Milestone planning - A different planning
approach. Project Management Institute.
Assaf, S. & Al-Hejji, S., 2006. Causes of delay in large construction
projects.. International journal of project management, pp. 349-357.
Bunner, A., 2017. What Are Project Milestones and How Do We Define
Them?. [Online]
Available at: https://www.clarizen.com/what-are-project-milestones/
[Accessed 11 08 2019].
CHUNG, E., 2017. Statement of Work (SOW) vs Project Scope
Statement for PMP Exam. [Online]
Available at: https://edward-designer.com/web/project-statement-of-work-sow-
vs-project-scope-statement/
[Accessed 12 08 2019].
Egeland, B., 2019. ARE FORMAL PROJECT SIGN OFFS REALLY
NECESSARY?. Cheetah Learning.
Fageha, M. K. & Aibinu, A. A., 2013. Managing Project Scope Definition
to Improve Stakeholders Participation and Enhance Project Outcome. Procedia
- Social and Behavioral Sciences, Volume 74, pp. 154-164.
Gibson Jr, G., Wang, Y., Cho, C. & Pappas, M., 2006. What Is Preproject
Planning, Anyway?. Journal of management in engineering, 22(1), pp. 35-42.
Kerzner, H., 2003. Project Management – A Systems Approach to
Planning, Scheduling, and Controlling. 8th ed. New York: John Wiley & Sons.
Kumar, V. S., 2006. Effective requirements management. Project
Management Institute.
Landau, P., 2018. Statement of Work: Definition & Examples. Project
Manager.
Project Management Institute, 2008. A Guide to the Project Management
Body of Knowledge (PMBOK Guide). 4th ed. s.l.:s.n.
Simplilearn, 2019. The Importance of Having Clearly Defined Acceptance
Criteria in Your Projects. Simplilearn.

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Team Clarizen, 2019. Why is Budgeting Such an Important Part of

Project Management?. [Online]
Available at: https://www.clarizen.com/why-is-budgeting-such-an-important-part-
of-project-management/
[Accessed 11 8 2019].

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