Everything One Needs to Know About Signing a Work Contract
The Statement of Work (SOW), being a crucial element in project management involves several steps. Project managers must be careful in drafting a statement of work contract, considering it is a legally binding agreement. SOW sets the stage for future collaboration. Even the slightest error or misinterpretation could lead to significant repercussions, underscoring the gravity of your role in this process. You may avoid many difficulties by thoroughly documenting every detail of the job beforehand. Thus, you should have a thorough and polished statement of work before having anyone sign on the dotted line.
Below is a small guide to help you know basic things before you sign a SOW.
What is a Statement of Work?
A statement of work, sometimes called the “scope of work,” is a contract that describes the project’s components. An agreement between a client and an agency, contractor, or service provider defines what’s included within a project and what’s not”. In project management, a sow statement of work always refers to the agreement between a client and a project-based organization.
Who Makes a Work Statement?
Writing a SOW is a responsibility given to someone every time a corporation starts on a new project. Whom? A statement of work can be created by assigning different roles based on the type of project, internal or external. When planning an internal project, the project management office, user groups, or stakeholders frequently receive the papers. If you provide external services, this work can be delegated to project managers, sponsors, clients, or independent third parties.
The statement of work contract is often written when projects are to be completed for external clients. Most of the time, project managers handle the necessary administrative tasks.
Why Make a Statement of Work?
The only advantage of the SOW, being an essential component of the contract, is its sealing power. But the work statement covers so much more. It helps to drive the conversation, giving you the overview you need to know what the client may expect from you.
A clear statement of work from the start will also help you get through the approval process more quickly. A further advantage is that a strong work description reduces the likelihood of many mistakes.
The Crucial Components of a SOW
Below is a list of essential components that are present in every precise sow contract template:
Project objectives
- Scope of work
2. Place & time of execution
3. Milestones
4. Tasks
5. Schedule
6. Deliverables
7. Testing and expected outcomes
8. Special terms, conditions, and requirements
9. Closure
Manage your project with a clear SOW
A statement of work contract is a document that outlines the specifications for a particular project. It includes the project’s deliverables, schedule, work location, and terms and conditions for payment. Creating a clear statement of work is the first step towards properly managing, carrying out, and finishing a project. Thus, a project can be completed within budget, on schedule, and within the intended scope. For the duration of the project, the SOW serves as a resource. It outlines the main goal of the project as well as the tasks that must be finished and turned in by its conclusion.
