Entering into a new business relationship is always an exciting time for both parties. Once you have confirmed that the project will go ahead, and you already have a framework of legal terms in place (such as a master services agreement), now all that is left to do is to define the scope of the services that will be provided. This is where this statement of work template comes in!
What is this statement of work template?
A statement of work (SoW in short) clearly defines what your team will and won’t do when providing services for a specific project. It works alongside another contract, such as a master services agreement or T&Cs, which sets out the broader terms and conditions between the parties, serving as an addendum that provides project-specific information.
The key to preparing a statement of work is to ensure it has all of the important details so each party has a full understanding of the project. It provides a roadmap for the parties by describing exactly what is going to be included within a project to guarantee the services are carried out according to expectations.
Please note that this template is applicable for services that do not include digital or technology services. If you are searching for a statement of work template for transactions that will involve digital or technology services, click here.
What should be included in a statement of work template?
A statement of work template should include, among other project-specific details, the scope of the services, any deliverables, timeline, milestones, acceptance testing criteria (if applicable) and fees.
For more information about the important elements to include in a statement of work template, our legal experts share their six top tips for an airtight statement of work template in this guide).
What are the advantages of using this statement of work template?
To save time and resources: There’s an old phrase “if you fail to prepare, then prepare to fail”. This is a good motto to follow when drafting a statement of work. If you fail to include all of the relevant details of the project in your statement of work, this may increase the risk of misunderstandings and unmet expectations between both parties. A well-drafted SoW will ensure that both parties are aligned on a project. This will save you time and resources that would otherwise be spent resolving future disputes or negotiations.
To start projects quickly: Typically the parties will enter into a framework agreement (i.e the MSA) at the outset of their relationship which lays down the essential legal terms that will govern the business relationship. After this, only a statement of work will need to be agreed upon before you can kick off a project.
To reduce mistakes and ensure consistency: It’s essential to enter into a statement before commencing the project, otherwise there may be mistakes made when providing the work. The SoW will set out who, what, where, why, when and how much will be payable. Docue's statement of work template includes several key headings that will prompt the user to input all of the relevant information. This reduces the chance of forgetting something important! A well-drafted SoW template will therefore enhance consistency in the quality of your statements of work across your workforce.
Who drafts the SoW?
In most cases, particularly in the tech world, it is the supplier who drafts the SoW as the supplier will have the best knowledge of its services. After this, the customer will review the SoW and confirm it is happy with its content. It is important to get the details within a SoW right, as even a small error can have huge implications and lead to disputes later on down the line.
To gain a comprehensive understanding of statements of work, read our ultimate guide.
What are the key terms contained in Docue’s statement of work template?
Key terms: This statement of work template includes the following key provisions:
• Scope of services;
• Deliverables;
• Assumptions/dependencies;
• Location of work;
• Who the project managers will be and the timings of project meetings;
• Payment terms and schedule;
• Customer responsibilities;
• Acceptance criteria; and
• How to terminate (get out of) the SoW if necessary.
Related templates
The master services agreement acts as the framework of legal terms that is signed before a statement of work is agreed upon. The MSA governs the overall relationship between the service provider and the customer, while the statement of work defines the details of a particular project. The statement of work will incorporate the terms of the master services agreement, which means the SoW and MSA will work alongside each other. The parties will therefore be bound by both the terms of the MSA and the SoW.
Our Master Services Agreement template can be found here.
After the MSA is in place, one or more statements of work can be entered into for several different projects at a time. Once the content has been agreed and the statement of work is signed, the parties can commence the project.
If you want to find out more about how an MSA and SoW work together to expedite your contracting process, enhance efficiency and protect your business interests, check out this handy blog.
Why use Docue to create your own statement of work template?
Consistency: Docue is simple to use and can help you to ensure your contracts are consistent, as each statement of work template gives users the option to include the key clauses each time they draft a new SoW.
Quick creation and e-signature: You can select the type of SoW that will be suitable for the project and tailor it to suit your circumstances. Once you have finished creating the document, you can send the contract to each party for e-signing.
Safe storage: Once signed, all of your contracts can be archived in Docue Drive to ensure you always have secure, quick and easy access to your legal documents in one place.
Tags: statement of work template, SoW, purchase order.
