What is Statement of Work Drafting?
A statement of work (SOW) is a legal document that includes terms to govern the working relationship between a client and service provider.
Having clarity about what’s expected of both parties encourages a smoother, less volatile relationship.
Read the rest of this article to explore key terms that are usually included in a statement of work, how to draft it, and why you should consider hiring a qualified lawyer for help with the document-drafting process.
What Core Components Should You Include in a Statement of Work?
A statement of work usually includes information about various aspects of the parties’ working relationship, such as:
- Work scope. This should be detailed regarding what products or services will be provided.
- Deliverables. This explains how and when goods or services should be submitted, and how they will be approved.
- Timeline. This must explain all project milestones to meet and when so that parties are on the same page. Include start and end dates for tasks.
- Payments. There should be information about how much the products or services will cost and how payments will be made.
- Modifications. Should the statement of work require changes in future, such as if the work scope needs to be adjusted, there should be a clause for modification processes.
- Termination. This explains how parties can end the contract early and how much notice is required.
- Confidentiality. Since confidential information will be exchanged during the agreement term, the agreement should specify how it must be protected. For example, the data owner might want their data returned after the arrangement ends.
What are Additional Terms for Drafting a Statement of Work?
When drafting a statement of work, there is additional information to include so that you provide transparency for both parties and everyone involved in the working agreement knows what’s expected of them.
Consider Reporting Processes
Explain what reporting processes will be used during the agreement term so that project milestones are met. This serves to streamline tasks and prevent miscommunication.
Make it Consistent with Other Documents
Your statement of work needs to be consistent with other company documents, such as the Master Services Agreement (MSA), to prevent ambiguity or misinterpretations.
Detail the Work Requirements
Once you’ve explained the work scope in the agreement, you should detail all included activities, such as the software that will be required for the tasks to be completed on time and who will provide it.
Include Project Steps
A statement of work is usually drafted for complicated or complex projects. This is why it’s recommended to explain, or break down, the processes that parties need to follow so that they complete their project tasks. It’s useful to include all involved costs so that there’s no confusion.
Link Payments to Milestones
Your agreement should include information about when payments will happen, depending on your milestones. List the full cost and payment schedules for clarity, along with explanations, such as if the payments will be made hourly or will follow a different payment structure.
Explain Acceptance Criteria
Once the provider gives the client the goods or services, the client will have to test and approve the finished work. Your statement of work should include details about what acceptance criteria and processes will be followed.
Create Boundaries
While your statement of work focuses on what’s required by parties and what they should be striving to achieve, it should also include what isn’t included in the work description. This prevents issues such as scope creep or misaligned expectations.
Assign Sign-off Authority
It’s important to clarify who has the power to sign off on work when it’s completed. By setting this up at the start of your project, you’ll avoid project delays. Be specific by naming a person in the agreement so that there’s no confusion about who has the authority.
How Does a Lawyer Help You with Statement of Work Drafting?
A lawyer will help you draft a clear, specific statement of work that’s beneficial for both parties. They’ll help you by:
- Confirming that your statement of work is aligned with other important documents, such as the MSA.
- Preventing disputes from arising, such as due to misaligned work expectations. They achieve this by drafting clear and detailed clauses.
- Ensuring that the agreement is legally valid to prevent legal or financial issues. They’ll consider all applicable laws and regulations so that you remain legally compliant.
- Protecting your intellectual property (IP), such as trademarks and trade secrets, by defining ownership and licensing rights.
- Reviewing a statement of work you’ve drafted to ensure it’s specific and aligned with your purpose.
Where to Hire a Lawyer for Statement of Work Drafting
You don’t have to struggle to find a lawyer to draft your statement of work. On ContractsCounsel, an online legal network connecting clients with vetted lawyers, it’s convenient to find and work with an experienced lawyer.
ContractsCounsel is one of the largest online legal marketplaces that gives you access to a curated network of lawyers who are experienced and skilled in contract drafting and review.
To request that a lawyer on the platform drafts your statement of work, here are the easy steps to follow online:
- Go to the ContractsCounsel marketplace.
- Post your request for a statement of work drafting. It’s free.
- Specify details of the project, such as why you require a statement of work.
- Wait to receive multiple bids from lawyers on the platform.
- Review the lawyers’ profiles according to factors such as their years of experience, previous projects they’ve worked on, and their fields of expertise.
- Select a lawyer you want to hire to draft your statement of work for a flat fee.
