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Statement of Work

The document defines a Statement of Work (SOW) as a document that captures all aspects of a project, including activities, deliverables, timelines, scope of work, and objectives. It is important because it is created at the outset of a project and outlines everything that needs to be done. An SOW typically includes a description of the scope, requirements, goals, review process, and responsibilities of both parties. Writing an effective SOW can be challenging due to the complexity, risks if not done correctly, and time commitment required.

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493 views10 pages

Statement of Work

The document defines a Statement of Work (SOW) as a document that captures all aspects of a project, including activities, deliverables, timelines, scope of work, and objectives. It is important because it is created at the outset of a project and outlines everything that needs to be done. An SOW typically includes a description of the scope, requirements, goals, review process, and responsibilities of both parties. Writing an effective SOW can be challenging due to the complexity, risks if not done correctly, and time commitment required.

Uploaded by

karthikalagirisamy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Statement of Work

What is sow in business?

 The SoW is the document that captures and defines all aspects of your project. You’ll note
the activities, deliverables and the timetable for the project. It’s an extremely detailed
document as it will lay the groundwork for the project plan. An SOW typically includes:
Scope of work. Project objectives
 It’s one of the first documents you’ll create to lay out the entire landscape of the project
before you plan and execute. Because of the great amount of detail required, the prospect
of writing one can be daunting. Therefore, let’s break it down into more digestible parts.
Why is sow important?

 It is most important because it's made at the outset of a project and outlines everything


that needs to go into your project
Purpose of the Statement of Work

 An SOW is used when contractors or collaborators outside your organization are working
on a project with your internal project team. It can also inform vendors or contractors who
are bidding on your project. An SOW is often used in conjunction with other related
documents, including:
 Request for Proposal (RFP): Organizations use this document to procure goods and/or
services from vendors or contractors.
 Master Services Agreement (MSA): This is a detailed contract that outlines two parties’
terms and responsibilities. 
What Makes Up a Statement of Work?

 For a full understanding of a SoW, first note the major aspects of the project it addresses.
Different Examples of a Statement of Work

 A SoW can be broken down into categories. There are three main types, which can be basically defined as
follows.
 Design/Detail: When you’re writing this SoW what you’re doing is conveying to the supplier how you want
the work done. What are the buyer requirements that will control the supplier’s process? You can use
a requirements gathering template to make sure you gather them all. These requirements can run the gamut
from quality, to measurement of materials. In this SoW it’s the buyer who is being held responsible for the
performance as they are the one who is directing its course.
 Level of Effort/Time and Materials/Unit Rate: This is an almost universal version and it can apply to most
projects. What it defines is hourly service as well as those materials required to perform the tasks. It tends to
find use in short-term contracts.
 Performance-Based: This is the preferred SoW of project managers as it focuses on the purpose of the
project, the resources and the quality level expected of the deliverables. It does not, however, explain how the
work is supposed to get done. This allows a great deal of autonomy on how to get to an outcome without
requiring a specific process.
Statement of Work vs. Scope of Work

 So what’s the difference between the statement of work and the scope of work? The scope
of work is just one section of the statement of work. While the SOW is a comprehensive
document that details the project’s goals, guidelines, deliverables, schedule, costs and
more, the scope section focuses on how those goals will be met.
Challenges of Writing a Statement of Work

 Complexity. An SOW can be a complex document. They are unique to each new contract agreement you enter into,
and can vary widely based on type of work required, the project duration, your industry, and the payment model that
will be used.
 Risks of an incorrect SOW. An SOW is a document with legal weight, which is used in the contract creation and
management process. As a result, there are real legal, financial, and operational risks for an organization that writes
an SOW improperly. For example, if the client is unclear in their specifications, which causes the contractor to
perform the work improperly, a legal battle could ensue over which party is responsible for correcting the mistakes
—and both parties’ reputations could be at risk.
 Time commitment. Writing an effective SOW can be a time-consuming process. Due to the risks involved, you
don’t want to rush it or take any shortcuts.
 Expertise. If you don’t have the knowledge and experience to write an SOW, it can be hard to find qualified writers
who understand all the guidelines and requirements. The SOW is typically written by the client, but authors may
vary, and more than one author may participate. This may include anyone from the project manager to a third-party
contractor to the Chief Information Officer in the case of IT and software development projects.
Tips for Writing Statements of Work

 Brainstorm first
 Write your SOW in the early stages of project development
 Define success and failure
 Include times for formal reviews
 Use specific descriptions of project scope, requirements, and goals.
 Agree on the details before you start writing
 Define any acronyms and potentially confusing terms
 Involve your whole team.
 Keep it brief
Thank You

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