A strong relationship between a service supplier, implementation guide, or company is important 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 data of the consumer is simply as necessary.
Whereas many firms work from a dialog to a proposal, to a handshake, there’s an infinite threat to each events concerned. It’s human nature for each side of a transaction to be optimistic in regards to 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 submit, I had written in regards to the steps it’s best to take when launching your company. Included have been two important contractual paperwork that I like to recommend:
- Grasp Service Settlement (MSA) – The overall contract masking 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 firms will work collectively.
- Assertion of labor (SOW) – a doc that particularly outlines the phrases, deliverables, and sources required to finish a selected undertaking or activity.
If you happen to’re doing ongoing work with a consumer, separating the 2 is good since you possibly can 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 creating the SOW is a collaborative one, the place the provider sometimes presents the SOW after which the seller walks by way of adjustments in these deliverables and the related funds.
What Sections Ought to Be In A Assertion Of Work?
The precise sections included in an announcement of labor can range relying on the character and scope of the undertaking, however usually, it ought to embody the next:
- Introduction – This part offers an summary of the undertaking and its function, in addition to any related background data.
- Scope of labor – This part outlines the particular duties and deliverables which are included within the undertaking, in addition to any exclusions or limitations.
- Aims and deliverables – This part outlines the particular targets and outcomes of the undertaking, in addition to the particular deliverables that will likely be supplied upon completion.
- Necessities – This part outlines any particular necessities or constraints that have to 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 have to be met. If it’s an ongoing relationship, it ought to specify the deliverables and their periodicity of supply. Be sure you embody how usually conferences will likely be held and who is anticipated to be current.
- Sources – This part outlines the sources that will likely 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 necessary. We regularly element what our assist and coaching tasks are versus the consumer’s tasks – particularly because it pertains to third-party platforms.
- Funds – This part outlines the funds for the undertaking, together with any prices for supplies, labor, and different bills. It’s crucial that you simply doc how your invoices will likely 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.
- Danger Administration – This part outlines any potential dangers or points which will come up throughout the undertaking and the way they are going to be managed. This could embody any remediation which may be mandatory if sudden points come up… and they’ll!
- High quality management – This part outlines the standard management measures that will likely be put in place to make sure that the undertaking meets the required requirements. It sometimes 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 purchasers will sometimes request extra help or the seller might should work round points that weren’t disclosed. It’s necessary to doc what the change request course of is in order that these adjustments 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 consequence from termination.
- Appendices – This part might embody any extra supporting data or paperwork which are related to the undertaking, such because the MSA, different licensing particulars, contracts, or technical specs.
And naturally, crucial component:
- Signatures – The title, signature, and date of the events which are licensed 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… fastidiously documenting every deliverable, the timeline, and the accountable social gathering. The SOW is fastidiously sectioned and numbered in order that we will seek advice from it at any time when discussing it internally with our group or getting clarification from the consumer.
By guaranteeing your undertaking administration system is totally documented to your SOW, any new requests stand out from the deliverables you possibly can determine whether or not or not they are going to require a change request.
Disclosure: All the time have an lawyer evaluate your SOW and MSA earlier than distributing them to a consumer to make sure you’re not placing your small business in danger. Whereas it’s crucial that your lawyer critiques your MSA, a evaluate of your SOW template could also be wonderful.
