What is a statement of work?
A statement of work lists and defines all relevant aspects of a project in written out form as opposed to bullet points. It is supposed to give a detailed and structured overview of every aspect and step involved in a project. It should also include standard regulatory and governance terms and conditions.
What a statement of work addresses
These following points are typically addressed in a statement of work:
- Purpose - explains the reason for the project
- Scope - defines the work that has to be done and the process used to complete it
- Location - defines where the work has to or can be done
- Tasks - breaks up the work defined in Scope into single tasks and defines these
- Milestones - details the single phases of the project as milestones to break up the overall schedule
- Deliverables - a list of what is due and when it is due
- Schedule - establishes a general timeline including the single due dates for deliverables
- Standards & Testing - in case there are specific industry standards that have to be adhered to or testing has to be done
- Success - defines the parameters for a successful completion of the project
- Requirements - details the equipment needed to complete the project as well as eventual formal requirements, such as specific degrees or qualifications
- Payments - details how and when payments will be made
- Note - for anything that might be important but did not fit into one the other categories
- Close - details, how the results are to be delivered and how the project is to be closed, along with archiving documents
What is the use of a statement of work?
A statement of work can be used to provide the necessary information that vendors, contractors or suppliers would need to properly prepare a bid. It also serves to get all parties involved on the same page and can provide project management with an organizational backdrop on which the detailed project plan can build.
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Disclaimer: This overview is for informational purposes only and cannot be counted as legal advice.