A stable relationship between a service supplier, implementation advisor, or company is crucial to the success of any implementation, integration, or execution of your advertising methods. Whereas the seller has experience within the services or products they’re offering, the institutional information of the consumer is simply as essential.
Whereas many corporations work from a dialog to a proposal, to a handshake, there’s an unlimited threat to each events concerned. It’s human nature for each side of a transaction to be optimistic concerning the tempo, course of, deliverables, and timeline related to any engagement. Nonetheless, each events come on the relationship with assumptions… many who aren’t disclosed within the negotiation course of nor documented within the proposal.
Why Develop A Assertion of Work (SOW)?
In a current put up, I had written concerning the steps it is best to take when launching your company. Included had been two crucial contractual paperwork that I like to recommend:
- Grasp Service Settlement (MSA) – The overall contract protecting the connection between our group and the consumer’s group. This has nothing to do with the precise undertaking deliverables – it’s a contract that units expectations on how our corporations will work collectively.
- Assertion of labor (SOW) – a doc that particularly outlines the phrases, deliverables, and sources required to finish a selected undertaking or job.
Should you’re doing ongoing work with a consumer, separating the 2 is right since you’ll be able to merely suggest every engagement with a brand new SOW however you don’t should renegotiate the MSA that covers the general relationship.
The SOW is a doc that protects each the seller and the provider to make sure expectations are agreed upon. The method of growing the SOW is a collaborative one, the place the provider usually presents the SOW after which the seller walks by way of modifications in these deliverables and the related finances.
What Sections Ought to Be In A Assertion Of Work?
The precise sections included in an announcement of labor can differ relying on the character and scope of the undertaking, however typically, it ought to embody the next:
- Introduction – This part offers an summary of the undertaking and its goal, in addition to any related background info.
- Scope of labor – This part outlines the precise duties and deliverables which might be included within the undertaking, in addition to any exclusions or limitations.
- Goals and deliverables – This part outlines the precise objectives and outcomes of the undertaking, in addition to the precise deliverables that might be supplied upon completion.
- Necessities – This part outlines any particular necessities or constraints that should be met as a way to full the undertaking, equivalent to technical specs or compliance necessities. It ought to cowl each the seller’s necessities in addition to the consumer’s necessities.
- Schedule – This part outlines the timeline and milestones for the undertaking, together with any deadlines or milestones that should be met. If it’s an ongoing relationship, it ought to specify the deliverables and their periodicity of supply. Make sure to embody how typically conferences might be held and who is anticipated to be current.
- Assets – This part outlines the sources that might be required to finish the undertaking, together with personnel, authorization, entry to platforms, software program, licenses, and different supplies. Inside this part, setting expectations on response instances and the service degree settlement is essential. We frequently element what our assist and coaching obligations are versus the consumer’s obligations – particularly because it pertains to third-party platforms.
- Price range – This part outlines the finances for the undertaking, together with any prices for supplies, labor, and different bills. It’s crucial that you simply doc how your invoices might be paid, when they are going to be paid, who’s your key billing contact, and what occurs within the occasion of a dispute or unpaid bill.
- Threat Administration – This part outlines any potential dangers or points which will come up through the undertaking and the way they are going to be managed. This could embody any remediation which may be essential if surprising points come up… and they’re going to!
- High quality management – This part outlines the standard management measures that might be put in place to make sure that the undertaking meets the required requirements. It usually goes by way of the acceptance procedures and specifies who will approve the general deliverables.
- Change Requests – Particulars are all the time misplaced on this course of and shoppers will usually request further help or the seller might should work round points that weren’t disclosed. It’s essential to doc what the change request course of is in order that these modifications and any subsequent charges are disclosed and agreed upon.
- Termination – This part outlines the circumstances beneath which the undertaking could also be terminated, in addition to any penalties or obligations which will outcome from termination.
- Appendices – This part might embody any further supporting info or paperwork which might be related to the undertaking, such because the MSA, different licensing particulars, contracts, or technical specs.
And naturally, crucial component:
- Signatures – The identify, signature, and date of the events which might be approved to enter the contract out of your firm and your consumer’s firm.
Transferring Ahead With Your Signed SOW
When a consumer indicators with us, our operations supervisor meets to evaluate the SOW after which interprets it into our undertaking administration platform… rigorously documenting every deliverable, the timeline, and the accountable celebration. The SOW is rigorously sectioned and numbered in order that we will seek advice from it at any time when discussing it internally with our workforce or getting clarification from the consumer.
By making certain your undertaking administration system is totally documented to your SOW, any new requests stand out from the deliverables you’ll be able to determine whether or not or not they’ll require a change request.
Disclosure: At all times have an lawyer evaluate your SOW and MSA earlier than distributing them to a consumer to make sure you’re not placing your enterprise in danger. Whereas it’s crucial that your lawyer critiques your MSA, a evaluate of your SOW template could also be fantastic.
