Originally published December 22, 2022. Updated November 25, 2024.
A properly written statement of work will save you time and money as it outlines the project scope and expectations of the project. Creating a statement of work (SOW) that is comprehensive and communicates your project goals is essential. To do this, you need to understand the definition of a statement of work, the key elements of a statement of work, and best practices for writing one.
With this knowledge, you can ensure that your statement of work meets the needs of all stakeholders involved. So, let’s dive in and talk about how exactly to define a statement of work and how to write one in a way that will put you on the road to success.
Definition of statement of work: A statement of work (SOW) is a document that outlines the scope of the project, the tasks to be completed, the timeline, and other details. It’s an important tool in project management because it helps ensure that the project is done correctly and on time. It also helps ensure that the work is done within the project budget and that all parties involved are on the same page. Most importantly, a statement of work can help protect the project team from potential disputes that may arise during the production phase.
A statement of work should include the following:
The glossary is a list of technical terms relevant to your project. This ensures that you and your clients speak the same language, facilitating alignment and communication.
Especially when you’re working with a client who isn’t versed in marketing terms, the glossary will help them understand the terms you use in your work. However, even when you work with clients who have a lot of experience working in marketing, terms can still have slight differences.
For example, some client teams may use “content plan” and “content strategy” interchangeably. To ensure clarity in differentiating them, it would be good to include them in your glossary.
To help the reader better understand the contents of your statement of work, provide context through a brief background.
Talk about your client’s product or service and where it is right now in its industry. You can also breeze through trends and growth opportunities relevant to your project and campaign.
Simply put, your problem statement talks about the need you want to address for your client. Tying it to the project background, what support does your client need, and what is their next goal? They may be launching a new product or service or wanting to increase their reach and influence in their segment. Perhaps, they are even looking into expanding their audience.
Get specific on what problem your project intends to solve and document it clearly in this part of your SoW.
Goals and objectives are a critical part of any successful project. They provide a clear statement of work, outlining what needs to be achieved and how it will be accomplished. Goals should be ambitious and measurable, with specific milestones that help track progress. Objectives, on the other hand, are smaller, actionable tasks that can be completed in a set amount of time.
When setting goals and objectives, it's important to define success to know when you've reached it.
Scope of work and statement of work are two different things, and it's important to note the difference between them. Statement of work vs scope of work refers to the overall document that details everything about the project, whereas the scope of work is just one aspect within the statement of work.
A project’s scope of work is important because it indicates what a project covers and what it does not.
The scope of work should outline the project in clear and precise detail so that all parties involved know what is expected of them. It also serves to protect both parties against any potential issues that may arise because of the agreement. In the long run, a well-defined scope can save you time, money, and headaches.
When beginning a project, it is important to understand the project deliverables and project requirements. A project deliverable is an item produced during a project. It could be anything from a document, a website, a presentation, an event, or a product.
Project requirements are the criteria that must be met for the deliverable to be deemed successful. Requirements can include things like a timeline, budget, tasks, and other parameters.
By understanding the deliverables and requirements of a project, you will be more likely to achieve your desired result.
A task list and resources are essential components of any successful project. A task list outlines all the tasks that must be completed to reach the project's objectives, while resources are the people, materials, and money required to complete the tasks.
Be sure to review the list of tasks and resources to ensure they are sufficient to complete the project. It’s also advisable to assign specific tasks to individuals to ensure everyone understands their roles and responsibilities. This will also help you create better-estimated schedules, which we will discuss next.
A project schedule is essential to keep any project on track. It typically outlines the tasks that need to be completed and the deadlines associated with them. It also identifies any risks and dependencies, as well as any resources required to complete the project.
Plan your project timeline with Workamajig
It’s an invaluable tool for keeping a project organized. With a good project schedule, project managers can stay on top of project operations and ensure that it’s completed on time and within budget.
The project cost is the amount of money that a client will pay for a project, and the payment describes the method and terms of delivery. Many marketing project contracts include a down payment at the beginning of the project and a final payment once all agreed-upon deliverables have been sent and approved. Retainer fees can also be involved, depending on the type and scope of work.
Project costs can be computed in many ways—output-based, time-based, etc. Be sure to document these clearly in your SoW to ensure that there is no confusion about the financial aspect of your project.
When entering into any business deal, it is essential to get the statement of work signed by all parties involved. This makes your SoW a legally binding document that outlines the terms and conditions of your agreement. Without a signature, either party could potentially invoke the terms of the agreement even if they were in full agreement at the time of signing.
Signing a document is also a way to show that both parties took the time to understand and discuss the details of the agreement. Finally, it also shows that both parties are committed to fulfilling the obligations set out in the project management statement of work.
What does a statement of work do?
It's important to have SoW documents to minimize misunderstandings and disputes. As it includes information about the project such as the deliverables, timeline, payment structure, and any other relevant details, this document can help ensure that all parties understand the scope, roles, and responsibilities of each one. Thus, it serves as a reference point should any issues arise during the project.
By establishing clear expectations upfront, all parties are on the same page when it comes to identifying key activities and their success parameters. This can help avoid the need to do unnecessary reworks and incur additional spending down the line.
It also helps to ensure that everyone involved in the project is held accountable for their part. This helps to keep everyone on task and prevent potential conflicts. It also ensures that each party can deliver on their promises to avoid having to fill in gaps at the last minute and incur rush fees and the like.
A statement of work (SOW) can be effective in helping project managers plan and manage their projects because it indicates so much relevant information –a breakdown of project tasks, key deadlines, deliverables, task assignments, goals, objectives, scope, etc.
Plus, the SoW can help project managers identify any potential risks or challenges that might arise over the course of the project. This means they can plan ahead and take steps to mitigate these risks before they become a problem.
When managing a team, having a project statement of work (SoW) can clarify expectations and set the tone for the team's performance. A well-crafted SoW will include key elements such as the project's objectives, timeline, deliverables, and payment terms. It also outlines the roles and responsibilities of the team and defines the scope of the project. This will help the team stay focused and on track, and it provides a blueprint for success.
Source: Valamis
An SoW is also a great tool for managing expectations. It’s a great way to hold the team accountable for their performance. With clear expectations and timelines, everyone knows what needs to be done and when. So if someone is not performing as expected, it's easy to see what issues need to be addressed.
A statement of work is an incredibly valuable tool for managing a team's focus and progress. By clearly defining the project scope, timeline, tasks, and expected deliverables, a statement of work agreement ensures everyone involved knows exactly what's expected and when. This helps to ensure everyone is working together towards a common goal, rather than wasting time and resources on tasks that won't contribute to the project's success.
Knowing the specifics of a project can help you be more successful in completing it. Before writing your SoW, be sure that you have a good overview of the details needed for the components of your document. Thoroughly immerse yourself in your client’s business goals and your project goals. Note relevant constraints regarding your resources internally and externally.
Take the time to research and get in touch with key opinion leaders. Asking questions can help you get a better understanding of the expectations, as well as any potential challenges you may face. Taking the time to familiarize yourself with the project particulars will enable you to be more successful in planning it.
When writing a SoW document, it is critical to align on purpose, goals, and objectives. Without a clear direction, the document could be confusing and open to interpretation, leading to costly misunderstandings and disputes.
Aligning on purpose, goals, and objectives provides a roadmap to ensure that the statement of work document successfully points to the project’s desired outcome.
Getting clarity on the scope of work for a project or contract makes it easier for all parties involved to understand what is expected. Your scope of work should include which tasks are required to complete the project, who will be responsible for performing the tasks, and how the tasks will be completed. This information can help both the client and the contractor to ensure that all parties are on the same page and that the project is completed to the highest standards.
Creating a project task list helps provide a clear statement of what needs to be accomplished. This list should include the project objectives, milestones and deliverables, and any major tasks that need to be completed in order to reach the goal. This can be broken down into smaller tasks and assigned to specific individuals or teams.
By having this clearly outlined, everyone would know what needs to be done, when it needs to be done, and who is responsible for getting it done.
Planning a project is a crucial step in ensuring that it is successful. Now that you’ve gathered the essential information about your project, you can plot them out and strategize on your team’s best approach.
To build your plan, consider the project's objectives, scope of work, required resources, and timeline for completion. It should also include a budget and a risk management plan to address potential issues.
A good way to go about this is by using a tool like Workamajig. Workamajig is the only project management tool built specifically for agencies and creative teams. Its many features include: project management, CRM, task management, resource management, as well as billing features which can help you plan and monitor all the moving parts of your campaign.
Staying on top of all the details and studying different scenarios can take time. To help you maximize your efforts, consider using tools and software like Workamajig.
Now that you have all the details you need for a statement of work in project management, simply compile all of them into a clean and readable statement of work format. Here are sample statement of work templates and project statement of work examples you can opt to use to speed up the process:
Once everything is compiled, polished, checked, and re-checked, you can now send it over to key stakeholders. Before sending the document out to be signed off, be sure to have it checked by your team leads to ensure that the information is accurate.
When identifying your signatories, it’s good to involve key decision-makers even though they won’t be directly involved in project operations.
SoW documents indicate what the project team needs to accomplish for the project to be considered complete. The terms for a project’s completion can be defined in different ways, which will also reflect the type of SoW document you need to write. Here are three statements of work contract variations you might encounter.
The statement of work document based on the amount of time or effort needed to complete the project is often used in many industries. Especially in software development, it’s common for teams to provide specific tasks that correspond to effort estimates. These estimates will then equate to rates that are used to compute the total worth of a project. This type of SoW document is often used for short-term contracts.
Examples of SoW for marketing projects that can use this type of statement of work document are those for website development, marketing consultation, etc.
The second type of SoW document is one that’s based on intended results and/or quality level of deliverables. Unlike the previous type, a performance-based SoW does not outline the processes and methods the project team intends to deploy to fulfill their commitments. Clients are charged based on their final outputs and deliverables.
SoW examples for marketing projects that can use this type of statement of work document are those for PR services, copywriting, event management, etc.
The last type of SoW document is more often used for purchases and manufacturing projects. Design/detail specific statement of work documents go into detail about key features that a supplier’s output needs to contain. For these types of projects, the requirements will control the process that the project team will use.
An example of SoW for marketing projects that can use this type of SoW document is one for website development. It can also be used for event production.
When it comes to writing a statement of work, it's important to get your team involved. After all, the statement of work in project management is a document that outlines the expectations, roles, and responsibilities of everyone involved in a project. This means that everyone should be involved in the creation of the SoW.
By involving your team in the process, you can ensure that everyone is aware of their responsibilities and that the SOW accurately reflects the project requirements. Additionally, getting your team involved will help to ensure that everyone is on the same page and that any potential issues are worked out before the project begins. So don't be afraid to involve your team in the process - it will help to create a smoother project and a better SoW.
As the statements of the work contract will be the blueprint for your project, it should be as detailed as possible to ensure that everyone involved knows what is expected of them. Visuals can be extremely helpful in this process.
For example, if you're talking about an integrated marketing campaign, try plotting all initiatives on a calendar. This can help your client visualize how they all work together to get your key messages across.
Visuals help show the relationships between different elements of the project or for organizing complex tasks. They can make your statement of work easier to comprehend to keep everyone on the same page.
So when writing a statement of work, including all important details. But more importantly, make sure they’re understandable to all parties.
When writing your statements of work, it's important to use simple and clear language. This will help ensure that all parties have a good understanding of the expectations and responsibilities associated with the project. Avoid complex words and jargon unless absolutely necessary.
When proofreading your SoW, try breaking down the statement into smaller, simpler components. This will help to ensure that each clause is clearly understood. Additionally, it's a good idea to include examples to illustrate your point and help clarify any potentially confusing points.
Deciding what success (and failure) looks like is an essential step to preparing for your project. A good way to do this is by establishing benchmarks. These benchmarks can be based on industry standards, historical data, or expert recommendations.
Source: Best Practices
Quantitative and qualitative measurements help you assess whether the work performed is acceptable according to standards. These also tie the project with the goals and acceptance criteria you have set elsewhere in the SoW.
Have you met Workamajig? Workamajig is a unique project management software in that it has been designed especially for creative teams.
With Workamajig, writing a SoW turns from a time-consuming chore into a 1-2-3 done.
Here’s how:
Budget tracking: Workamajig’s built-in finance and accounting tools break down your finances and help you track them all the way through your project. That means the financial aspects of your SoW are a done deal with Workamajig.
Collaboration tools: With inbuilt communication tools, multiple team members can track, comment on, and update your SoW.
Template creation: Workamajig provides customizable SoW templates, which means you never have to start from scratch, and you have a beautiful template to share with stakeholders.
Resource planning: Resources are an important part of your SoW, and Workamajig’s integration between resource allocation and scheduling allows you to accurately estimate project timelines, staff requirements, and associated costs within the SoW.
Client communication: Workamajig is a real one-stop shop - we also deal with your client communication. You can get approvals, share drafts, collect feedback, and obtain project sign-offs, all within Workamajig.
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