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The use of the terms TOR and SOW essentially refer to the same thing and serve the same purpose. For professional services contracts, it is more appropriate to use the term TOR as a common practice.

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.

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.

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

There's no right or wrong way to write a Statement of Work, but there are essentials, including the scope of work, deliverables, time and resources, payment terms, client services, changes, and terms and conditions.

Elements of an SOW can include: Purpose of the project. Scope of work being performed. Location of the project, project length, and any work requirements. Expected deadlines and deliverables. Acceptance criteria. Any hardware and software required. Performance-based standards to be met.

Project scope documents the boundaries of the project. Project Scope Statement includes all the work and only the work to complete the project.

A project charter is a document that is closely related to the statement of work but is the more big picture. Instead of going into detail about each task and deliverable, it covers project objectives and expected outcomes.

What is a statement of work template? A statement of work template agreed-upon between an agency and a client clearly defines what work to include within a project and what isn't part of it. In itself, an SoW template is a project contract that establishes and aligns the expectations for both parties.