Tuesday, February 25, 2020

SOW (Statement of work)

*Q.* Any idea about SOW? What is it? Ever prepared one?

*A.* In Project Management, Statement of Work (SOW) is a formal document that defines project-specific activities (at high level of detail) for a vendor providing services to the client.
In most cases SOW is a binding contract. Many companies create their own customized version of SOW to accommodate requests & proposals.
SOW should include
• Business objective/purpose of the Project & a high-level overview of the solution.
• Scope, including inline assumptions/dependencies/risks.
• Location. Most of the projects today follow an onshore-offshore model.
• Timelines including dev, warranty, maintenance and weekly billing terms.
• Deliverable in line with the timelines.
• Project governance & Standards.
• Acceptance criteria, i.e. objective terms, who will review & sign-off, etc.
• Payment Terms & Schedule - fixed bid or retainer, by milestone or deliverable or by pre-agreed schedule.
• Any special requirements not covered above - resourcing, certifications, travel, post work, security, regulatory compliance, etc.

SOW should be crisp & clear in order to clarify the metrics for success and to avoid disputes involving deliverable, budgets, or timelines.

#ProjectManagement


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