A statement of work (SOW), in project management, is a document in which a contracting officer or chief procurement officer (CPO) specifies the objectives and deliverables for a particular project or service contract. An sow defined is often included as part of a request for proposal (RFP), a document used to solicit sealed bids from potential vendors and service providers.
What is
included in a statement of work document
Prospective contractors and service providers use the information an SOW provides to determine whether or not they can meet the objectives and deliverables for a particular project or service contract and would like to submit a proposal. A well-defined statement of work reduces the risk of misunderstanding or miscommunication. It also provides talking points that will help the customer and contractor eventually enter into a formal and legally binding agreement, based upon realistic expectations and outcomes, should they decide to work together.
The format for a statement of work in project management can vary, but all tend to follow a basic template and have a reasonably consistent set of characteristics. These include:
• Background- This section of a statement of work explains the context for the project and documents the project's overarching goals and requirements. It explicitly states what business needs are addressed by carrying out the project.
• Purpose/objectives- This sections states the project’s overarching goals and how they will solve business problems or positively affect different parts of the organization.
• Scope of work- This section of an SOW will document what work will be performed under a contractual agreement, how the work will be divided and who is responsible for completing the work. The project scope also addresses what resources are required for the project.
• Tasking and deliverables- This section defines the specific tasks or deliverables the contractor must perform, along with a timeline for work to be completed. Each process is broken down by task and resources before being assigned to specific team members.
• Standards and testing- This section outlines any industry or compliance standards that must be met when executing the project as well as any testing that needs to be done.
• Acceptance criteria- This section specifies how the customer will determine whether or not the contractor or service provider has met the objectives of project tasks and deliverables.
• Payment- This section documents how and when completed work will be invoiced and when payment will be scheduled. Billing hours may also be addressed in this section.
Additionally, an SOW may list any special requirements needed, such as specialized hardware or software, technical skills or certifications, and security requirements, such as security clearance. If applicable, the document will also specify project location and travel needs.
What is
included in a statement of work document
Prospective contractors and service providers use the information an SOW provides to determine whether or not they can meet the objectives and deliverables for a particular project or service contract and would like to submit a proposal. A well-defined statement of work reduces the risk of misunderstanding or miscommunication. It also provides talking points that will help the customer and contractor eventually enter into a formal and legally binding agreement, based upon realistic expectations and outcomes, should they decide to work together.The format for a statement of work in project management can vary, but all tend to follow a basic template and have a reasonably consistent set of characteristics. These include:
• Background- This section of a statement of work explains the context for the project and documents the project's overarching goals and requirements. It explicitly states what business needs are addressed by carrying out the project.
• Purpose/objectives- This sections states the project’s overarching goals and how they will solve business problems or positively affect different parts of the organization.
• Scope of work- This section of an SOW will document what work will be performed under a contractual agreement, how the work will be divided and who is responsible for completing the work. The project scope also addresses what resources are required for the project.
• Tasking and deliverables- This section defines the specific tasks or deliverables the contractor must perform, along with a timeline for work to be completed. Each process is broken down by task and resources before being assigned to specific team members.
• Standards and testing- This section outlines any industry or compliance standards that must be met when executing the project as well as any testing that needs to be done.
• Acceptance criteria- This section specifies how the customer will determine whether or not the contractor or service provider has met the objectives of project tasks and deliverables.
• Payment- This section documents how and when completed work will be invoiced and when payment will be scheduled. Billing hours may also be addressed in this section.
Additionally, an SOW may list any special requirements needed, such as specialized hardware or software, technical skills or certifications, and security requirements, such as security clearance. If applicable, the document will also specify project location and travel needs.
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