Statement of Work (SOW): Here's Why It Needs to Be Done Right

A?statement of work?(SOW) is a vital part of a project plan that can make a big difference in an organization’s bottom line.

A statement of work creates the foundation for the delivery of services and products. Seeing as the majority of projects fail during the beginning and planning phases ( rather than during the implementation or execution phases), it is crucial to lay the groundwork that will eventually determine whether or not the project succeeds.

This is why you need to create a statement that will have a precise description of the work that needs to be done so that you can have a baseline against which you can monitor and manage the progress of a project. This includes having a detailed plan of?project scope, cost, schedule etc.

Basically, there are three common types of SOWs:

• Design/Detailed Statement of Work – This type of SOW instructs the vendor, contractor, or supplier on how to complete the task and what procedures to follow. It is focused on the special requirements of a project. This is the recommended SOW for manufacturing or construction projects, as it is frequently used in government contracts where contractors are expected to meet strict standards.
• Level of Effort/Time and Materials/Unit Rate Statement of Work – This SOW is a general description of the service that will be provided over a set period of time. It is commonly used by hourly service providers. It's frequently used for temporary or contract personnel, as well as delivery orders. It is simply based on the number of hours a service provider worked and the materials required to complete said service.
• Performance-based Statement of Work – This type of SOW places accountability on the contractor or supplier since they are responsible for providing outcomes using whichever tactics they believe are most effective. However, it does not instruct the contractor on how to complete the work. This type of SOW allows them maximum flexibility in terms of how they work and emphasizes results over processes.?

One of the biggest challenges in writing an effective SOW is simply getting started. Experts in SOW writing recommend brainstorming with team members or stakeholders. It’s important everyone is on the same page with a SOW’s objectives.

It’s best to discuss what should be included and which details would be better negotiated during later phases of the project or contract management process before writing an official statement of work.

It’s also recommended that organizations start developing the SOW in the early stages of a project when most projects are still taking shape. That can help you define and develop the project itself.

Want to learn more? Tonex offers SOW Writing Training, a 2-day course that provides participants with concepts, tools, approaches, and configuration of Statement of Work.

Additionally, Tonex offers over five dozen other courses in Business Skills. Training covers everything from business writing and briefing skills to SOW Writing and Risk Management. Here are just a few of our courses in Business Skills:

Strategic Planning and Management Training (3 days)

Time Management and Organizational Skills (2 days)

Writing for Engineers, Scientists and Technical Managers (2 days)

Scope Management and Baseline Development (2 days)

Conflict Management Training (1 day)

Corporate Social Responsibility Training (2 days)

For more information, questions, comments,?contact us.

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