It is a narrative description that defines timelines, deliverables as well as particular activities for a vendor that is offering his services to the client. It also includes a detailed description of pricing, requirements, governance terms, and standard regulations.
Table of Contents
Meaning
The statement of work is also known as SOW and is described as a working agreement between two involved parties. It can be a government entity, buyer or client and the contractor, vendor, or agency. It includes
Project objectives
Schedule
Scope of work
Tasks
Payment of the project
Deliverable
Expected outcomes
Specific conditions, terms, and requirements
There are numerous styles and formats of documents related to the sow. Companies are also creating their version, which is customized to accommodate their requirements related to specific proposals and requests they receive.
It must be correct so that it does not leave anything out. It is used for a wide variety of projects from a single visual design to large scale government building contract.
Purpose of SOW
Purpose
It is used when an internal project team of an organization is working on a project with outside collaborators. It can also be used in connection with other documents like
RFP or Request for Proposal – This document is used by companies to acquire goods and services from the contractors and vendors
MSA or Master Services Agreement – It is a contract with detailed information outlining the terms and responsibilities of the two involved parties.
It is considered that a well-written sow serves as a good foundation for writing MSA or RFP. The SOW must be written after deciding on the guidelines, terms, and conditions so that it can adhere to the correct format and language. This avoids conflicts in the future, especially when the contract is negotiated.
It is a fact that the sow is generally used when the conditions and tasks are understood by both the involved parties so that they can know what a successful project will look like and how will it be approved.
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