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Writing a Good Statement of Work as Basis for The Project Plan

A common reason why parties argue in projects is due to failures to provide a properly drafted specification. As uncomplicated as it sounds, a Statement of Work (SOW) is not an easy task. But nothing is more fundamental to the success of a project. If it is too vague, too broad or too general, it leaves room for different interpretations, which can lead to difficulties along the way. This applies to internal projects and much more when suppliers are involved.

The following points will help you to create a good, efficient service description for your project:

What is a Statement of Work (SOW)?

The statement of work is the document that records and defines all aspects of your project (expectations, results, schedule, prices). It is the basis for the project plan and should therefore be very detailed. Without it it would be like saying to a contractor: "Build me a house" without telling him when, what kind or how big.

What Should be Included in the SOW?

Mind map of a SOW

All details important for the success of the project should be clearly clarified in advance and then recorded in writing.

The SOW contains as many parts as the project itself. To get a complete understanding of the SOW, first make a note of the most important aspects of the project it is dealing with.

  1. Introduction: First, explain what work needs to be done. Then name the individual project participants. This leads to a standing offer that fixes the prices for the products or services purchased for the project and to a more formal contract that goes into detail.

  2. Project's Purpose': Start with the big question: Why are you initiating this project? What is the purpose of the project? Create a letter of intent to complete this section and give a thorough answer to these questions, such as what are the results, goals and return on investment.

  3. Scope of Work: Note the work to be done in the project. Also consider which hardware and software is required. What is the process you will use to complete the work? This includes the results, time, and even general steps required to complete it.

  4. Place of Work: The team you're employing will have to work somewhere. The project can be site-specific, in a central facility, or in some if not all of them, so team members could work remotely. Either way, here's where you want to describe it in detail and where the devices and software used are.

  5. Tasks: Follow the general steps described in the scope of work and divide them into more detailed tasks. Be specific and do not omit any actions required by the project to achieve its results. If you wish, divide the tasks into milestones or phases.

  6. Milestones: Define the time period planned for completion of the project from the start date to the proposed end date. Specify the number of hours per week and month, and whatever is related to planning the project. Again, accuracy counts. For example, if there is a maximum number of billable hours for vendors and/or contracts, note them here.

  7. Deliverables: Define the results of the project. Note what will be due and when. Describe them in detail, i.e. quantity, size, color and whatever may be relevant.

  8. Schedule: However, successful implementations cannot be defined by the speed or responsiveness of the system alone. After all, what good is a great application if it takes a decade to build it? Therefore, a statement of work must contain additional time elements. The schedule lists when the services need to be delivered, starting with the supplier selected to achieve this goal, the prelude, what the performance period is, the review phase, development, implementation, testing, completion of the project, etc. The SOW is a set of time elements that can be used to create a SOW.
    Use a language that allows flexibility rather than a fixed date in the calendar. For example, a SOW should specify that a task is due two months after the contract is signed - a wording that drives the project forward while addressing potential issues such as a delay in signing the contract.
    The SOW should also set specific times for formal reviews so that all stakeholders can confirm that they are on track.

  9. Standards and Testing: If there are industry standards that need to be met, list them here. Also, if there are product tests, list who will be involved, what equipment is needed, and other resources.

  10. Defining Success: Consider what the sponsor and/or stakeholder expects from a successful project completion. The SOW should clarify for all participants what constitutes the success or failure of the project. For example, if you expect your supplier to develop user requirements, your SOW should stipulate that the supplier must interview certain user groups and have the requirements approved before the work is considered done. This defines success better than just saying, "The supplier will meet users' requirements."
    The definition of success depends on the project. Project managers need to determine whether a successful implementation is defined by speed, response time, ease of use or all three factors, and then quantify them in the SOW. In the agile environment, the "Definition of Done" (DoD) is also often inserted here.

  11. Requirements: List all other devices required to complete the project and when a necessary completion or certification of team members is required. Also consider whether there will be travel or other aspects of the project that are not already covered.

  12. Payments: Once the budget has been created, you can list the payments related to the project and specify how they will be delivered, in advance, over time, or after completion. For example, you can pay upon completion of a milestone or according to a fixed schedule, whichever makes more sense financial-wise. Keep in mind that payments to suppliers are made upon acceptance of key deliverables. Define that part of the compensation is withheld until the supplier proves that all services work together.

  13. Other: There will be other parts of the project that do not fit into the above categories. Keep them here so they won't be forgotten. For example, are there security issues, hardware or software limitations, travel expenses, post-project support, etc.?

  14. Closure: This determines how the results are accepted and who delivers, verifies and signs the results. It also takes care of the final administrative tasks and ensures that everything is signed, completed and archived.

Express yourself in a way that everyone can understand and formulate precisely.

The project team involved and their suppliers are not the only ones using SOW. It should be understandable for end users, service providers, management and, if necessary, a judge.

Although many parties need to understand the SOW, you should describe the scope and requirements of the project in detail. Vague goals may lead to incomplete or erroneous results. Write "The specified task will not take more than four hours" instead of saying that a task "will take a reasonable amount of time".

Don't forget your signatures!

After all the work you have done to explain the specifics of the project in detail, you do not want to neglect the last, decisive step - to complete the work.

You cannot continue unless you have the authority to do so. Or, more precisely, you can, but it could cost you the success of the project. Therefore, make sure that all those responsible have signed the SOW. This includes the timetable, milestones and achievements. If you have the SOW signed, you can deliver it. You have the limits within which the work can be done, how it is done, the duration of that work, etc. In case of dispute, you can display the signed document to support your actions.

Create a project plan on the basis of SOW

Your now completed SOW is the basis for your project plan. Create a project plan with all tasks, phases, milestones and the required resources according to the specified schedule. A project management software like Merlin Project helps you to make your project a success on time and within budget.

Posted by Stefanie Blome on August 8th, 2019 under Project Management
Tags: statement-of-work sow

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