Statement of work

A statement of work (SOW) is a narrative description of the products, services or results to be delivered by a project. It is a key input to the project charter and is usually prepared by the customer or sponsor, or by the performing organisation for an internal project. For external contracts, it is part of the bid document and forms the basis of the contract.

Information in a SOW

1. Business need: the problem or opportunity that justifies the work, based on market demand, technological advance, legal requirement or customer request.
2. Product scope description: characteristics of the product or service and its relationship with the business need.
3. Strategic plan: how the project fits the organisation's strategy.
4. Scope of work: what the supplier will and will not do; deliverables.
5. Location of work and performance period.
6. Schedule and milestones; payment terms.
7. Acceptance criteria and standards to be followed.
8. Resources / tools to be provided by the customer.
9. Special requirements, such as travel, security or working hours.

Customer need --> SOW --> Bid / Contract
                    |
                    +--> Project Charter

Importance

• Gives a clear shared understanding between customer and supplier.
• Basis for estimating and for evaluating proposals.
• Helps avoid scope disputes during the project.
• Used later in procurement management as the procurement SOW.

Qualities of a good SOW

Clear, complete, concise, measurable and verifiable.

Example: SOW for a school website: develop a 20-page bilingual website with a content management system, provide hosting for one year, train 3 staff, deliver within 90 days, and accept after 2 weeks of testing.