What You’ll Learn.
What is a Statement of Work?
Statement of work documents enable project managers to have a ‘birds eye view’ of the entire project. The tasks, deliverables and scheduling are all factored in. A high level of detail goes into them, establishing a level of control.
Having a statement of work template is vital for both the sender and the recipient as it allows both parties to synergise their efforts. It enables effective collaboration and develops a clear understanding between all parties. With an overview of everything involved, both sides can feel a level of control in a unitary fashion.
A typical scenario where even a simple statement of work document works well is with an agency and its clients. The client can list all the required tasks involved and their expected outcomes. The agency can then translate these aims and objectives into a set of actionable steps. With teamwork, both can collaborate and work through the project together.
Due to the high level of detail required, it’s often difficult to put a statement of work template together. The best way to approach a mammoth task is to break it down into small tasks. This way, momentum builds after the completion of each action step.
What and How to Write in a Statement of Work Template
It’s simple to create a SOW for your next project. Learn what to include in your Statement of work template with the quick step-by-step guide below.
Statement of Work Template
These fields will contain general and essential information about the project. You’ll find contact information for those in charge and the addresses of key locations.
A short section that summarises the agreement and project within the space of a few paragraphs.
PURPOSE/GOALS OF PROJECT
Here, provide an outline of the reasons for taking on this arrangement and list the general objectives of the project. You must write the outline clearly so that both parties are aware of the full extent of the work that they expect to accomplish as part of the project.
Explain what it’s hoped the project will achieve or compare a completed project to how things currently are to demonstrate the objective.
SCOPE OF WORK
This section explains what the project will involve. It will also reveal the planned delivery methods for this scope of work. The scope of work includes the following:
- PROJECT DELIVERABLES: Reveal what the client can expect to see from the end product of this project, whether that’s a product, a service or another type of result. An example of this is an initial project strategy report.
- EXCLUSIONS: The list of things that are excluded from the project scope. List here the costs and other eventualities not covered by the project scope. For example, overtime or extra time taken that’s not covered.
- PILLARS/MILESTONES: The significant points of the project in terms of deliverables, when clients can expect to get updates on them and how to sign off on completion. An example of a milestone is the project stages' start and end date.
Put the expenses, descriptions and costs here in a table. These expenses could range from software licences to hardware rentals or purchases. It might also include the costs of renting or leasing premises, additional freelancers or other personnel.
PRICING AND PAYMENT TERMS
You clarify the terms for pricing and payment in this section. By including this section, the client can state what costs they won’t cover.
PROJECT SCHEDULE/WEEKLY TRACKER
There should be a timeline for your project with all the relevant information organised for at-a-glance progress updates. This weekly tracker table will help to document the project's costs and timing.
It should include deliverables, tasks and deadlines, as well as budgets and the names of the teams or individuals assigned to oversee each deliverable.
Other columns should include the hourly rate of the job, the weeks (with one column per week) and the budget.
If you update this document throughout the job as a ‘living document,’ it should be easy to track the project's overall cost to date. You can also easily convert your spreadsheets into PDFs using Adobe Acrobat.