Whether you're a buyer or supplier, understanding how to write a statement of work is the key to laying the foundations of a successful project. This document must be written in a way that is clear, direct, and can be easily understood by both technical and non-technical readers.
To create your own statement of work that helps you follow each of these top tips, check out our statement of work template.
Six top tips for creating a stellar statement of work
1. Always include a reference to your framework agreement or MSA
It’s important to ensure that your statement of work has a place to reference the legal terms and conditions that govern the statement of work. This will usually be a master services agreement (MSA) or framework services agreement. These are the overarching terms that govern all the legal commitments between the parties, and while it will also include general business and commercial terms, only commercial terms should be included in the statement of work, unless special terms and conditions that vary the MSA have been agreed.
2. Clarity is key
When drafting your statement of work, clarity is paramount. Each action or task should be clearly articulated, leaving no room for ambiguity.
It’s important to define the scope of work with all of the relevant details relating to the services. Sometimes it’s good to go back to basics by ensuring that the content of the statement of work can clearly answer these questions:
What the services are and how will they be provided?
Who will provide them? E.g. specific contacts, project managers, and relevant teams that will be involved throughout the project.
Where will the services be provided/performed?
When the services will be delivered?
Additionally, ensure you outline any unique customer requirements in the statement of work. If there are specific objectives, then these objectives should be clearly set out within the agreement. This will prevent misunderstandings and establish a solid foundation for successful project completion.
3. Remember to include payment terms, key deadlines and the deliverables
This may sound like a no-brainer, but it’s crucial to specify the deliverables, payment terms and key deadlines in your statement of work. Clearly state what the deliverables are, how they align with deadlines, and the payment structure.
Addressing these commercial aspects in the SOW not only safeguards your interests but also serves as a preventative measure against future disputes, fostering a transparent and cooperative working relationship.
4. Set acceptance criteria
To prevent potential disagreements when it comes to acceptance of the deliverables, including acceptance criteria can ensure that clear expectations and measurable standards are set for the completion of specific tasks, milestones or project phases. Acceptance criteria will usually include predefined conditions or standards that a deliverable must meet for it to be accepted by the buyer. These criteria serve as the basis for determining whether the work has been completed satisfactorily and in accordance with the agreed-upon specifications.
Make these criteria measurable, including milestones or performance standards, providing both parties with a clear performance benchmark. This strategic move ensures that both parties remain on the same page regarding the project's progress, minimising uncertainties and promoting efficient collaboration.
For more information about acceptance criteria, check out these handy FAQs.
5. Define service levels
Clearly outline the service levels for the offered service in your SOW. Specify the remedy in case these service levels are not met, maintaining transparency and accountability throughout the project.
You can attach a service level agreement to your statement of work setting out specific service levels that define the level of service and performance standards that the supplier is expected to meet when performing the services. You can find Docue’s dynamic service level agreement template here.
It's crucial not to promise service levels that exceed what you or your supplier offers, as this can lead to complications down the line. A detailed approach to service levels ensures a realistic and achievable framework.
6. Include any special terms and conditions or project requirements
A comprehensive SOW should incorporate any distinctive terms, conditions or project-specific requirements that have been mutually agreed upon during negotiations. Any bespoke elements or terms that will vary from the terms set out in the master services agreement must be documented within the SOW to ensure that expectations set at the outset align with the performance of the services.
Having a detailed approach when it comes to your statement of work guarantees that all parties are aligned and aware of the specific nuances of each project.
How can Docue help? Use our dynamic statement of work template!
Look no further! Docue offers a user-friendly interface, enabling you to effortlessly generate a lawyer-grade statement of work that is tailored to your business needs without the traditional law firm price tag. You can also create your own master services agreement using our template too!
Once you've created your statement of work, you can send it via the platform for electronic signing. Once signed, you can securely store the agreement within Docue's storage vault, guaranteeing convenient and swift access to all your contracts in a centralised location.
Sign up with Docue now to use Docue’s statement of work today.
Tags: statement of work, statement of work example, statement of work word, statement of work sample
Related articles
Related legal templates
About Docue
Docue is trusted by so many growth companies – from sole traders to listed companies.