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Both parties need to agree to and sign a statement of work (SOW). But what exactly is this document, and how does it fit into the broader landscape of business agreements? Read on to learn more about SOWs, what they are used for, and how to create your own.

How to write a statement of work Begin with an introduction. Start by writing an introduction to the project and parties. ... Determine the objectives. ... Clarify the scope. ... Break down the tasks. ... State the work location. ... Outline the work schedule. ... Explain the deliverables. ... Create payment terms.

Although the SOW is a detailed document, it is only a general description of work and should reference supplementary documentation to specify particular tasks further. A good statement of work will define the scope of a project as well as key performance indicators, or KPIs, of the agreement.

These are the steps you can take to create a simple, but well-defined statement of work. Introduce the project. ... Define the vision. ... Set the project requirements. ... Define the scope. ... Set the deadline of the project. ... Allocate key resources. ... Create the schedule. ... Specify the terms of payment and due dates.

The statement of work is an all-encompassing, detailed document outlining the goals, purpose, guidelines, deliverables, time requirements, costs, etc. The scope of work is one section within the SoW describing in detail the projected outcomes of the project and the specifics about the job done to hit those outcomes.

Statement of Work Types There are three main types of statement of work: Functional SOW. Performance SOW. Design SOW.

A statement of work, or SOW, is a formal written document detailing specifics about a job a vendor will be completing for a client.The SOW should also list where the work will be performed, how long the work is expected to take, and the work standards or quality that must be adhered to.

A well-defined set of acceptance criteria is arguably the most important focus of the phase description. Signing Off: This should list the stakeholders that are required to sign the phase off. All too often this is left out and the inevitable question of who said you can progress? arises.

How to Write a Good Statement of WorkIntroduce the project. You always begin the statement of work with an introduction.Define the vision.Set the project requirements.Define the scope.Set the deadline of the project.Allocate key resources.Create the schedule.Specify the terms of payment and due dates.More items...?Sept 10, 2020

A statement of work should contain; an overview, governance detail, the approach, phases and tasks, deliverables, timeline and milestones, estimate and payment schedule, and any assumptions.