Statement of Work (SOW)

• Definition

statement of work (SOW)
A statement of work (SOW), in project management, is a document in which a contracting officer or chief procurement officer (CPO) specifies the objectives and deliverables for a particular project or service contract. An SOW is often included as part of a request for proposal (RFP), a document used to solicit sealed bids from potential vendors and service providers.


What is included in a statement of work document

Background- This section of a statement of work explains the context for the project and documents the project's overarching goals and requirements
Purpose/objectives- This sections states the project’s overarching goals and how they will solve business problems or positively affect different parts of the organization.
Scope of work- This section of an SOW will document what work will be performed under a contractual agreement, how the work will be divided and who is responsible for completing the work
Tasking and deliverables- This section defines the specific tasks or deliverables the contractor must perform, along with a timeline for work to be completed.
Standards and testing- This section outlines any industry or compliance standards that must be met when executing the project as well as any testing that needs to be done.
Acceptance criteria- This section specifies how the customer will determine whether or not the contractor or service provider has met the objectives of project tasks and deliverables.
Payment- This section documents how and when completed work will be invoiced and when payment will be scheduled.

There are three common types of SOW documents.
Design/detail- This model of SOW focuses on the details behind the project requirements and processes
Level of effort/time and materials/unit rate- This is the most common version of the SOW that is typically used as a template for most projects
Performance- This type of SOW is performance-based and focuses on the purpose and ends results of the project.

https://searchitchannel.techtarget.com/definition/statement-of-work-SOW

• What is a Statement of Work?

A Statement of Work (SOW) is a document within a contract that describes the work requirements for a specific project along with its performance and design expectations.
The main purpose of the SOW is to define the liabilities, responsibilities and work agreements between two parties, usually clients and service providers.

A well-written SOW will define the scope and Key Performance Indicators (KPIs) for the agreement.
These KPIs can then be used as a baseline to determine whether the service provider has met conditions of the SOW.

https://www.villanovau.com/resources/contract-management/what-is-statement-of-work/

• What Is a Statement of Work?

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.

What Is the Use of a Statement of Work?
As noted, the statement of work is a detailed overview of the project in all its dimensions. It’s also a way to share what the project entails with those who are working on the project, whether they are collaborating or are contracted to work on the project. This includes vendors and contractors who are bidding to work on the project

It’s also helpful to the project leader, as it provides a structure on which the project plan can be built on. The statement of work will also help to avoid conflicts in the project. With detail and clarity, the SoW helps keep everyone that’s involved in the project on the same page and works to leave confusion to a minimum.

Different Examples of a Statement of Work
There are three main types

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?

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 someone supposes the work to get done. This allows a great deal of autonomy on how to get to an outcome without requiring a specific process.

https://www.projectmanager.com/blog/statement-work-definition-examples