Protect Highlight Statement Of Work For Free

It's also important for both parties to sign off on an SOW before any work begins as this makes it legally binding on both sides. Failure to do so could mean that one party has no legal recourse should things go wrong further down the line.

The following tips can be used as a reference when creating an SOW. Avoid verbs that can lead to vague statements. The phrase "the contractor shall perform" definitively states which party is to do the work. Avoid "should" or "may" because they leave the decision for action up to the contractor.

A statement of work is legally binding, but it is not the final, formal contract signed at the end of the contracting process. It can be thought of as the formal foundation of a final contract.

The SOW works as reference material during the project. It lists the central purpose of the project and the work that needs to be completed and delivered by the end of the project. This is all agreed upon through signing the SOW.

Many business and family contracts do require a notary by law (buying a house, making out a will, etc.), but a statement of work isn't one of them. Nevertheless, it's possible to sign it with a notary's presence to ensure an extra layer of security about the statement being enforceable in courts.

The SOW is agreed upon and signed. Now, the statement of work document works as both the formal document and the practical action plan when initiating and implementing the project. It ensures that both parties have established a common ground and have an understanding about the full life cycle of the project.

A statement of work is legally binding, but it is not the final, formal contract signed at the end of the contracting process. It can be thought of as the formal foundation of a final contract.

Along with a proof of acceptance, a SOW could be considered a standalone contract. However, in practice, this isn't usually the case. Most circumstances where a SOW is separate from a contract occur when the relationship between businesses is governed by a master service agreement (MSA).