In project management, the term “Scope of Work” (SoW) is widely used. This crucial component of a project is also known as the Statement of Work. That is because it defines an undertaking’s boundaries. Its specifications or how it is printed might differ from industry to industry. However, you may still utilise a sample of a scope of work to help you create your own.
You may learn more about what a SoW is, what makes up one, and some potential obstacles in this post. Additionally, you’ll discover some basic principles, industry-specific best practises, and several SoW case studies that may help you create a strong SoW.
What does “scope of work” mean?
A Scope of Work Agreement is initially described in the Guide to the Project Management Body of Knowledge (PMBOK Guide) as “a narrative description of items or services to be on contract. However, this definition only takes into account the SoW from the viewpoint of the consumer and fails to take into account what the contractor must do to offer its goods or services.
Martin (1998) therefore provided a more comprehensive definition: “a narrative explanation of the items and services to be given to a client, as well as a statement of the contractor’s needs and requirements to correctly accomplish the delivery of such products and services under contract.”
Components of an SoW
Objectives: In this part, you outline your project’s goals in clear, quantifiable language. It could go over the broad project objectives in general or dig into particular changes the project will bring about. The most crucial part is that it clarifies why you or your team are working on this project. It is crucial to detect them early on since, according to PMI, a change in project goals is the second most common reason for project failure.
Scope: What deliverables are included and excluded in the project are specified in this section. A comprehensive list of the steps required to finish the work may be included.
Deliverables: Whether you are offering a good or a service, the SoW should make it very clear what results are anticipated. Although the amount of specificity will depend on how complicated the project is, it should contain the technical requirements for the deliverables.
Schedule: This section outlines the project’s start and completion dates, length, and the due dates for deliverables (MBO Partners, 2019). It outlines the crucial benchmarks that must be met at each stage, such as project inception, development, implementation, testing, and project conclusion . High-level milestones can be represented using Gantt charts as one approach to show this.
Payment: When bills will be paid—weekly, monthly, or when certain deadlines have passed or deliverables have been met—is mentioned in this section of the SoW. This section could also cover other types of payment arrangements, such as time-and-materials pricing, set pricing, and retainers.
Price: The costs of materials and labour, overhead expenses, pricing hypotheses, and other factors are discussed in this section along with other factors that contribute to project cost. This part should also include any percentages that must be paid as a deposit and after the job is finished.
Acceptance: This section outlines the inspection, validation, and testing requirements. It need to outline the customer approval procedure and provide areas for the client and a business representative to sign. This section of the SoW transforms the agreement into a binding contract that may be enforced in court.