Statements of Work: Why SOW's are important and how to write one.
Learn what a Statement of Work is and how to write one.
No matter what industry you work in, project managers must distribute certain crucial pieces of paperwork to vendors coming on to a project. One of these is a Statement of Work. But what is this document, and why is it so important?
Read on for a better understanding of what a Statement of Work is, why it matters, and how to write one that will protect both you and your service providers or other vendors.
What is a Statement of Work?
A Statement of Work is a legally binding document that specifies the scope of work for a service provider or vendor on a certain project. This includes the deliverables, standards, and other critical details about the who, what, where, and when of the provided work.
Why is it important?
A Statement of Work is important because it ensures there is no misunderstanding between vendors and their clients when they come on board a project. It also protects the client from their vendors suddenly claiming they were enlisted for different deliverables, a different project schedule, or other details than were originally agreed to.
How to write a Statement of Work.
To write a Statement of Work, you need to include the following details:
- Purpose of the project
- Scope of work
- Location of work
- Acceptable standards and criteria
- Payment schedule
- Special requirements
It should also be signed by both the vendor and the client before work begins or payment is issued.