Statement Of Work

Written by CS Shirish Bhootra

Introduction:

Irrespective of the industry, the presence of one constant during the whole complete project life cycle of a project is paperwork. Paperwork is free from limits, as there is fix limit set up for paperwork concerning creation approvals, filings and, at last, achievement. All these documents related to project management are considered important, but the important weightage provided to the Statement of Work (SOW) is more as it’s made at the outset of a project and outlines everything that needs to form part of the project.

The use of effective project planning tools and a detailed and well-written statement of work (SOW) contributes to the successful completion of the project within the scheduled time and budget.

Statement of Work: An Overview

The Statement of Work (SOW) is a legally binding document that captures and outlines or defines all the work management aspects relevant to the project. It comprises activities, deliverables, and timetables related to the project. It’s to be considered as a depth work contract that defines the terms and conditions agreed upon between parties and lays the framework for the project plan.

It is said to be the first document to be created to lay out the entire landscape of the project to plan and thereafter execute that plan.

Statement of Work: Purpose

The Statement of Work comprises a detailed overview of the scope related to the project. It is a mode to share the requirements related to the project, acceptance criteria, and payment terms and also details related to the people, like whether it is a collaboration or it is a contractual event.

It also includes stakeholders like vendors and contractors who bid for project-related work. It also helps in avoiding conflicts as there is clarity concerning all aspects.

It’s a useful tool for project managers regarding the creation of a structure on which the project plan can be built.

Statement of Work: Key Factors

The statement of work comprises various parts. For an understanding of an SOW, its major aspects are taken into consideration, which is as follows:

1. Introduction

It discloses the work done, general information and parties involved in the project.

2. Purpose Statement

The reason for initiating this project is mentioned in this part. It also contains other details like project objectives, deliverables, and return on investment.

3. Scope of Work

It mentions details regarding work to be done in the project. It also contains information related to the hardware and software required and other related aspects of a project.

4. Where Will the Work Be Done?

Information related to working staff is mentioned in this part. The project might be either site-specific or at a central facility, or some, if not all, team members could work remotely. Details regarding these aspects are also mentioned under this part.

5. Tasks

General steps, as mentioned under the heading scope of work, are taken into consideration and broken into more detailed tasks.

6. Milestones

Disclosure of the schedule concerning time is mentioned here. Further, it also consists of details like the starting date of work, completion date and detail of the billable hours per week and month, and other matters related to the scheduling of the project.

7. Deliverables

Details related to the project deliverables and explanation related to what is due and when it is due.

8. Schedule

Discloses a detailed list of when the project deliverables need to be get done, beginning with which vendor will be selected to achieve this goal, the kickoff, what the period of performance is, the review stage, development, implementation, testing, close of the project, etc.

9. Standards and Testing

Industry standards, if any, should be listed. Testing of the system, if required, who will be involved in this process, equipment required, and other related resources are to be mentioned in this part.

10. Define Project Success

Details like what the sponsors and/or project stakeholders expect on project completion success.

11. Project Requirements

Other requirements related to the project, like equipment etc., are needed for its completion.

12. Payment Terms

Details related to payments must be mentioned. If a budget is created, list the payments related to the project, and how action related to payment would be executed, when they will be delivered- upfront, over time, or after completion should be specified.

13. Other

It comprises details that are not related to the above-mentioned specific categories. For example, are there any security issues, restrictions relating to the hardware or software, travel pay, post-project support, etc.

14. Closure

Details related to how the deliverable will be accepted, who will deliver, review and sign off on the deliverables.

Conclusion:

In a nutshell, it may be concluded that a Statement of Work plays an effective role in the successful completion of a project. It should be drafted with utmost care and caution so that it can contribute maximum to the completion of the project within schedule.

References:

Peter Landau, What is a Statement of Work? Definition & Examples (projectmanager)

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