Components of a Statement

of Work (SOW)
Knowing and understanding the key
parts of a SOW will help you
understand your project’s ground rules!
 Statement of Work Overview
• A statement of work (SOW) lists and
define the goals, constraints, scope,
communications guidelines and success
criteria for a project.
• Once written, the SOW becomes a
document subject to negotiation and
modification by stakeholders.
• The approved SOW becomes the official
ground rules for the project.
 Why Consensus Is Needed
• Before you proceed with your project, consensus on the
SOW must be reached.
– Give the stakeholders time to give their input.
– Be prepared for multiple meetings and iterations of the SOW
before it’s right.
• Once the SOW is agreed upon by all key stakeholders,
get it signed by those stakeholders!
– Signatures are evidence in the future that everyone agreed to
the project as defined in the SOW.
• The SOW establishes the baseline for the detailed
planning activities and establishes a detailed schedule
and budget for the project.
 Prepare for Changes
• As a project progresses, the SOW might
need to be amended and agreed upon
again.
• Making changes to a SOW becomes an
important way of managing stakeholders
throughout the project lifecycle.
• Make sure everyone is informed and that
all changes have been agreed to by key
stakeholders in writing.
 What’s in a SOW?-1
• Statement of purpose.
– Answer the question, “Why are you doing the
project?”
– Reference the project business case in a
general way. (Save the detailed references to
the project business case for a cost-benefit
analysis, which is a separate document that
isn’t part of the SOW.)
 What’s in a SOW?-2
• Statement of scope.
– Clearly define what the project will and won’t
do.
– Mention the relationship of the project to other
business endeavors and projects. (This is
important, especially if your project is a
subproject of a much larger one.)
 What’s in a SOW?-3
• Project deliverables expected.
– Define what the project is supposed to produce.
– All intermediate and final project management and
project deliverables should be listed by name and
included in the SOW.
– Specify what status reports, change requests, and
other reports are considered deliverables, along with
frequency of report and its target audience.
– Ensure that basic communications within the project
are specified and understood.
 What’s in a SOW?-4
• Goals and objectives.
– Define the criteria for success:
• Timeliness and schedule expectations
• Budget expectations
• Other goals for project, including customer’s
expectations.
 What’s in a SOW?-5
• Cost and schedule estimates.
– Include well researched estimates of both
costs and project schedule.
– Set realistic expectations for project
stakeholders; i.e., figures should be
reasonable.
 What’s in a SOW?-6
• List of stakeholders.
– List all key influencers, managers and
sponsors of the project.
– At a minimum, identify the names and roles of
the project manager, key project team
members, sponsor, managers with an interest
in the project, and important customer
contacts.
 What’s in a SOW?-7
• Chain of command.
– Who reports to whom? Include an
organization chart.
– Include a responsibility matrix (a table
defining important project roles and
responsibilities).
– Please note that if project roles and reporting
requirements aren’t defined here, conflicts
down the road about authority could seriously
affect your project.
 What’s in a SOW?-8
• Agreements and assumptions.
– Detail any agreements that form the basis of
interactions.
– Detail any assumptions that limit the project.
– Don’t omit anything that could affect future
management of the project.
– Remember, all side agreements must be
agreed to in the SOW. Document these here.
 What’s in a SOW?-9
• Communication plan.
– Detail basic reports to be produced.
– List any meetings to be held during the
detailed planning phase of the project.
– Specify frequency and audience of status
reports.