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 and marketing methods. Whereas the seller has experience within the services or products they’re offering, the institutional data of the consumer is simply as essential.
Whereas many firms work from a dialog to a proposal, to a handshake, there’s an infinite danger 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 latest publish, I had written concerning the steps you need to take when launching your company. Included had been two important contractual paperwork that I like to recommend:
- Grasp Service Settlement (MSA) – The overall contract overlaying 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 assets required to finish a selected undertaking or job.
In the event you’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 growing the SOW is a collaborative one, the place the provider usually presents the SOW after which the seller walks by way of adjustments in these deliverables and the related price range.
What Sections Ought to Be In A Assertion Of Work?
The particular sections included in an announcement of labor can fluctuate relying on the character and scope of the undertaking, however usually, it ought to embody the next:
- Introduction – This part offers an outline of the undertaking and its objective, in addition to any related background data.
- Scope of labor – This part outlines the particular duties and deliverables which might be included within the undertaking, in addition to any exclusions or limitations.
- Targets and deliverables – This part outlines the particular targets and outcomes of the undertaking, in addition to the particular deliverables that might be offered upon completion.
- Necessities – This part outlines any particular necessities or constraints that should be met in an effort to full the undertaking, similar 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. Be sure you embody how typically conferences might be held and who is anticipated to be current.
- Assets – This part outlines the assets 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 occasions and the service stage settlement is essential. We frequently element what our assist and coaching duties are versus the consumer’s duties – particularly because it pertains to third-party platforms.
- Finances – This part outlines the price range 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.
- Danger Administration – This part outlines any potential dangers or points that will come up throughout 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’ll!
- 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 extra help or the seller could should work round points that weren’t disclosed. It’s essential 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 below which the undertaking could also be terminated, in addition to any penalties or obligations that will consequence from termination.
- Appendices – This part could embody any extra supporting data or paperwork which might be related to the undertaking, such because the MSA, different licensing particulars, contracts, or technical specs.
And naturally, crucial aspect:
- Signatures – The identify, signature, and date of the events which might be licensed to enter the contract out of your firm and your consumer’s firm.
Shifting 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 occasion. The SOW is fastidiously sectioned and numbered in order that we will discuss with 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 absolutely documented to your SOW, any new requests stand out from the deliverables you possibly can determine whether or not or not they may 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 what you are promoting in danger. Whereas it’s crucial that your lawyer opinions your MSA, a evaluate of your SOW template could also be superb.
