If you have signed a contract with a customer and are ready to begin working on the project, it is beneficial to use a statement of work template to get things organised before you start. The main agreement should include a comprehensive picture of the project; nevertheless, this legally binding agreement between the client and the vendor explicitly describes the demand, scope of work, milestones, expenses, deliverables, and any other significant terms and conditions that have been agreed upon.
Continue reading to learn more about the several clauses included in this form, which will help you understand exactly what kind of agreement you’re entering into.
Signing a statement of work template
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Here’s a quick explanation of the typical statement of work document lifecycle in bullet points:
Insert your own information into the placeholder text in our Statement of Work (SOW) template.
Each party makes any necessary modifications to the template.
Signeasy will accept the SoW template if it is uploaded (Sign-up for the 14-day free trial)
To sign a document, simply click on any portion of the document.
To complete the process, click “Finish.”
Fill out the recipient’s information to get the document sent to the next signer.
Recognizing the purpose of the statement of work template
It is necessary to develop a statement of work (SOW) document whether you are a service provider, consultant, or a party responsible for project execution. Why?
Understanding the statement of work template
It demonstrates to customers what they may anticipate from your company.
For the most part, this type of paper will assist you prevent unpleasant surprises once the project has begun, such as when the client expects different work or faster timescales than originally anticipated.
Having established the purpose of statement of work documents, the following is an overview of the many components contained within our free statement of work template: a.
Begin the SOW agreement by listing the names and contact information of the parties involved, as well as the date on which the contract will become legally enforceable. Include a description of how this SOW is related to the master service agreement.
Additionally, you must lay out a plan of action in the event that either party requires clarification on any of the conditions of the SOW or contract.
Before getting into the terms and conditions of the SOW, the template makes a note of the project’s name, the types of services and materials that will be provided (we will go over this in more detail in the following section), the purpose of the project, and the location of the project. This is followed by the terms and conditions of the SOW.
It is also advisable to include information on the project’s various phases, as well as the contact information for the key project stakeholders.
The scope of the work
The “scope of work” section should include a detailed description of all of the tasks that must be done. You can list the supplies or services that are necessary, the plan for completing the project, the expected results, and the completion date for each job in this section.
Duration of SOW
This section of our free SoW template defines the time frame within which the vendor will be providing their services…. Aside from the start and finish dates of the project, make sure to provide information about how the contract’s schedule can be modified.
Criteria for successful completion
It is possible that the client’s concept of completed work differs from the vendor’s definition. In order to avoid any misunderstanding about what constitutes finished work, this section specifies the requirements that indicate that the jobs associated with this SOW have been successfully completed.
You can also include a clause that allows the Parties to cancel a deliverable by providing written notice to the other party.
All of the assumptions that were made while evaluating costs and scoping the amount of work that this SOW will entail should be included in this section.
Of course, each SOW will be based on a unique set of assumptions that will vary depending on the project, industry, and Master Agreement.
Price and payment terms are discussed in detail.
Because of the name of this portion of the template, it is focused on the costs of goods and labour. All of these particulars can be listed in a tabular manner. Make sure to provide the budget and timeline’s maximum and lower limits as well.
Invoicing and out-of-pocket expenses
You will specify how and when to invoice the client, as well as what form of penalty will be enforced if the client fails to make the payment on time.
Additionally, the terms and conditions for billing out-of-pocket expenses paid by the vendor, such as travel and business lunches, should be spelled clearly.
Process for making changes to a project
If either party believes that any changes to the SOW are necessary, they must make a PCR request to the other. This section details the procedures that must be followed in order to seek and implement the change.
Acknowledge and sign
To conclude the process, when the SOW work document has been shared and mutually acknowledged, the representatives of both parties must sign on the dotted line.
It is critical that the names of the representatives are appropriately entered into the computer system.
To summarise the SOW, you can indicate that the Master Agreement has been attached to this document for ease of reference, and that the SOW is complete.