A SOW
will be a crucial document that is part of any project management process. In
this article, you will discover why you should use a SOW, the purpose, the
common types of SOW documents and how a SOW can ensure that your project does
run smoothly.
Purpose Of The Statement Of Work
A SOW or a statement of work is not a doc that’s just
relevant to big businesses. Instead, this doc can be useful for any business
that is completing a project for a client. The purpose of a SOW is to clearly
detail the how, when, what, why and who of the work that will be completed for
a client. While commonly used by consulting disciplines as well as management,
they can be beneficial to a wide range of different services in various
industries.
It is
worth noting that a statement of work will typically include work activities,
deliverables, and timelines for a specific type of project. The SOW should also
include the purpose as well as the scope of the work. The purpose is
particularly important as these are basically the objectives of a project, what
you want to achieve and how the level of achievement will be assessed. The main
purpose is to ensure that responsibilities, liabilities and work agreements for
two parties are clearly defined.
Why
Should You Use A Sow And How Can It Keep Things Running Smoothly
There
are many reasons why you should use a SOW for your project management. As
noted, it will set clear expectations for a particular client. It will ensure
that everyone knows who is responsible for what and keep people on the same
page. You will also be aware of what a client will determine to be ‘good work.’
The benefit here is similar to a personal guarantee on a loan. It is a legally
binding document and you are expected to meet any of the requirements written
in the SOW.
One
of the other benefits of a SOW is that you will be able to state how you will
communicate with a client and when. This will provide information on when they
will be able to complete revisions. So, you’ll be keeping them as accountable
to a particular project as you.
Another
great reason to use a SOW is to ensure that you can avoid the issue of scope
creep. With scope creep, a client will request more services while failing to
increase the timeline or establish a greater budget. With a SOW you will be
able to request a greater level of finance for any additional work that is
completed on a project. It can also include any work that you are not going to
agree to later on.
Another
issue that can plague projects is invoices being unpaid. This is becoming a
serious issue for businesses. With A SOW, you can make sure that you do keep
clients accountable for payments and specifically for paying on time. The
client will be required to sign the SOW, ensuring that it is effectively a
contract. So, you’ll be provided with the client’s written agreement to pay for
services on time. For this reason, you should make sure that the SOW does
include both the payment schedule and specific charges.
Difference
Between Scope Of Work And Statement Of Work
Project
managers can be confused about the difference between the scope of work and the
statement. After all, they are often both referred to as SOW. However, there
are notable differences. The statement of work will include the purpose of the
project and the description. This is often the document a client will sign to
start work for a professional service firm.
A
typical comprehensive statement of work will usually include a scope
of work. The scope of work is more detailed with organisational charts for the
different individuals that are part of the project. It will also include any
further resources and equipment or tools that will be required on the project
as well.
Common
Types Of Sow Documents
Finally,
it is worth noting that there are a few different types of SOW and these mainly
fall into three different categories. These are:
- Design/Detail
Statement of Work
- Level of
Effort or Time & Materials or Unite Rate
- Performance-Based
Statement Of Work
Each
type includes different information. For instance, the Design/detail statement
of work provides the supplier information on how to complete the work and
provides a definition of buyer requirements.
The
second type is useful for virtually any service and the deliverable will
typically be an hour of work as well as the materials necessary to complete the
service.
The
Performance-based statement of work will include all aspects for acquisition
based on the purpose of work that will be performed as well as equipment
supplied. It does not, however, state how work will be fulfilled.
Author Bio:
“Myself Shashi Teja, I work as Staff
Author at FieldEngineer.com a Marketplace for On-Demand telecom workforce,
ranging from field engineers to high-level network engineers, project managers
and Network Architects in 170 countries. I am an Electronics engineer. I can
understand ongoing technology trends and keep myself updated in technology
industry”
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