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What is a Statement of Work?
A Statement of Work describes project-specific activities and timelines for a vendor who is providing services to the client. Statements of Work do this by laying out the individual tasks, who those tasks are assigned to, and the way in which the tasks will be completed allows clients and service providers to be on the same page for the course of a project.
The Statement of Work specifically deals with a single project, and is usually connected to a document that outlines the details of a larger relationship between a client and service provider.
A Statement of Work can be used to detail the objectives, purpose, and terms for a project. It can also help businesses or individuals understand the products or services that need to be delivered as well as outline what each party will be responsible for over the course of the project.
No matter how small a project is, the Statement of Work should be used to record the details of a project and the terms under which the project will be completed. Using a Statement of Work helps you keep track of important information for a project and keeps everyone informed and focused on the project goals. Making yours with Rocket Lawyer is as easy as answering a few questions – get started now!
When to use a Statement of Work:
- Your business will be providing services or products to a business or individual for a specific project.
- Your business will be working with another business or individual on a specific project.
- You will be contracting with a business or individual to work on a specific project.
Sample Statement of Work
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Date:
| Services performed by: |
| , |
| Services performed for: |
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This Statement of Work ("SOW") is between ("Client") and ("Contractor"), effective (the "Effective Date").
This SOW is entered into, as of the Effective Date, by and between the Client and Contractor, and is subject to the terms and conditions specified below. The Exhibit(s) to this SOW shall be deemed to be a part hereof. In the event of any inconsistency between the terms of this SOW and the Agreement, the terms of the SOW shall prevail.
Purpose
The purpose of this SOW is agreed to by the parties as follows:
Scope of Work
This SOW outlines the tasks and deliverables currently anticipated by the parties during the SOW term. Beginning on , will provide the following product(s) (collectively, the "Products") or service(s) (collectively, the "Services"):
as described in the attached exhibit(s).
Responsibilities
will:
•
will:
•
Project Schedule
and will engage in the project according to the following timeline:
| Milestone | Date |
Period of Performance
The Services shall commence on
Acceptance Criteria
The products or services provided by will be considered complete by as long as the following conditions or criteria are met:
•
Payment Schedule
Payment shall be made to the Contractor in the total amount of upon execution of this Agreement
IN WITNESS WHEREOF, the parties hereto have executed this SOW to be effective as of the day, month and year first written above.
| By: | Date: |
| By: | Date: |
EXHIBIT A: DESCRIPTION OF PRODUCT(S) OR SERVICE(S)
About Statements of Work
Learn about how to detail terms and objectives for a project
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Common terms in a Statement of Work
A Statement of Work can vary widely depending on the nature of the work, but there are several common terms and elements often found in these documents. Here are some of the common terms that you should keep in mind when making your own:
Scope of work
The scope of work in a SOW describes what work will be done. It typically explains the boundaries to the work such as the location, timing, and may or may not be included in the project.
Responsibilities
Each party's responsibilities are important to the Statement of Work. The agreement should lay out which party has the primary responsibility for a task, the services or goods to be provided, payment terms, and who will manage and administer the services.
Acceptance criteria
The acceptance criteria helps everyone understand the standards or quality for the project deliverable. For a contractor, these criteria can help to avoid disagreements with a client over the work that has been completed.
Payment terms or period
This document can be set up with a variety of payment options. A single lump sum payment can be made at the completion of service or at some other defined date or event. Multiple installment payments can be made on specific dates or after specific events have occurred, such as completion of various stages of a project. If there is an agreement for services that will be provided on an ongoing basis, fixed wages can be defined to pay for the services at an hourly rate or at various milestones. If none of these options meet your needs, payment terms can be written into the document.
Agreement termination
The Statement of Work should specify when the agreement will end. If the parties know in advance when the services of the contractor will no longer be needed, that specific date can be entered. Frequently the parties may contemplate an ongoing relationship. If that is the case, the second option can be utilized. The agreement will continue in effect until one of the parties elects to terminate it. This gives the parties the flexibility to agree to a long-term commitment while retaining some freedom to end the Agreement when necessary.
Finally, if the services will be needed for only one job or project of unknown length, it may be best to select the final option and state that the agreement will terminate upon the completion of the particular project for which the contractor is being retained.
This might seem like a lot at first – but don’t worry, building your document with Rocket Lawyer is as simple as answering a few questions. Get started right away!
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What do I need to make my own Statement of Work?
Making a Statement of Work online is simple. Just answer a few questions and Rocket Lawyer will build your document for you. When you have all of the details prepared in advance, making your document is a quick and easy process.
To make your SOW you will need the following information:
Party details
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The service provider’s details.
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If the service provider is a company, who is signing on its behalf?
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The client’s details.
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If the client is a company, who is signing on its behalf?
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Contact information for the service provider's project manager.
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Contact information for the client's project manager.
Project and service details
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When does this Statement of Work start?
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Why is the project being done?
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What is the goal of the project?
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What services will be provided?
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What are the project deliverables?
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Will the SOW set out:
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How this project relates to other projects? If so, how does it relate?
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Services that fall outside the scope of the work? If so, what services fall outside of the scope of the work?
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Project dependencies? If so, what are they?
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Termination
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When will this agreement end?
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How many days' notice needs to be given to end the Statement of Work?
Fees and expenses
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What are the service provider's fees?
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Will expenses incurred by the service provider be charged separately?
If you have any questions regarding any aspect of this document, don’t hesitate to ask a lawyer.
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Statement of Work FAQs
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How can I make my own Statement of Work?
It is very simple to prepare a free Statement of Work with Rocket Lawyer:
- Make the document: Answer a few general questions and we will do the rest.
- Send and share it: Ask a lawyer your legal questions before sharing.
- Sign and make it legal: RocketSign makes signing fast and simple.
This method is, in most cases, notably less expensive and less time-consuming than meeting and hiring a lawyer or conventional law firm to draft a document on your behalf.
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What can be included in a Statement of Work?
A Statement of Work can cover a wide variety of information about the project, including:
- Details of the service provider and the client.
- Background information.
- Scope of the work.
- Project manager contact information.
- Deliverables.
- Dependencies.
- Services provided.
- Fees.
- Termination.
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Why do I need a Statement of Work (SOW)?
Having a SOW in place allows you to manage expectations and to have a written and agreed upon record of a project. Making a Statement of Work ensures that everyone understands what is agreed upon and their obligations in relation to a project. A Statement of Work is often an ancillary or additional document connected to another agreement or contract (such as a Service Contracts).
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What are project deliverables in a Statement of Work?
Project deliverables are the goods produced or the services supplied as a result of the project. Project deliverables vary from project to project.
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What are project dependencies and can they be added to my Statement of Work?
Project dependencies are things that the service provider needs or expects the client to provide in order for the successful completion of the project deliverables. For example, the client may need to ensure that relevant stakeholders are available to participate in creative and technical reviews. And yes – it is good practice to include these in your Statement of Work.
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