The scope of the project is an important aspect of any project; Without a well-defined scope, projects are not feasible. The work statement or SOW is a legal document that describes the scope of the project as well as all the components involved in the execution of the project. This is the main document created at the beginning of a project by Project management professionals. This makes the job statement the most important document in project management. Do not confuse SOW in managing projects with other documents like Project Charter and Work distribution structure (WBS) in project management. A brief outline of the work statement is discussed below.
What is a work statement?
A work statement or SOW is a binding legal document that lists all the activities and responsibilities of suppliers and Project Management Team (PMP).. This document is required when external donors are required to complete a project. Project managers create a SOW as part of a contract or bid document. SOW describes all aspects of project execution overall The scope of the project, Budget and time. The work statement must be approved by all stakeholders involved in the project otherwise the project cannot be carried out. Thus, project managers create a work statement before creating the project plan structure needed to complete the project.
Components of a work statement
SOW describes the scope of the project in detail and all the products included in the execution of the project. This is an official document detailing the project requirements, payment terms, location details and admission criteria. The work statement ends after negotiating with stakeholders and the project management team. It helps inward Risk reduction And avoiding future disputes.
Each work statement must include the following elements:
- the project’s target
- The scope of the project
- Project location
- The resources required for the project
- Schedules are expected
- Estimated budget
- Criteria for admission
- Performance metrics
There are several templates for creating a job statement, they vary depending on the nature or specific requirements of the project. The work statement must be as detailed as possible to avoid any confusion or conflict during project execution. It should be noted that without SOW approval from stakeholders and customers no project can be carried out. Therefore, project managers need to prepare the work statement with careful attention.
Types of work statement
There are three types of SOWs that organizations use to define the scope and outcomes of a project. These are as follows:
Design or detail
This SOW describes the specific requirements of the project. It helps the vendors and project management team to know all the requirements of the project including the steps for project execution.
Level of effort
This is the most common job statement and it applies to all projects regardless of industry. It describes the working hours and materials required to carry out the project.
Performance based
This type of SOW is based on project performance and preferred by project managers. It describes the purpose of the project, the necessary resources and the products that will be achieved. This statement of work allows for flexibility and allows for shared responsibility in risk reduction and risk management.
Steps for writing SOW in project management
A work statement must include all the necessary information related to the scope of the project. Project managers are skilled in identifying the details and creating the SOW for project approval. Here are the steps project managers take to write a job statement for a given project:
- Provide a brief introduction.
- Define the purpose of the project.
- Describe the scope of the project.
- Create a WBS (Work Detail Structure) to include all project products, milestones, and tasks.
- Set the project duration and the estimated time to complete the project.
- Define admission criteria and success metrics.
- Determine the project budget and payment terms.
To create a good work statement all components of SOW must be included. Sometimes location and resource requirements are also mentioned in the job statement document. The details vary depending on the nature or requirements of the project. This document lays the foundation for the project plan so that project managers invest their time carefully while writing SOW. The job statement can also include graphs and charts to make the details clear and understandable to all stakeholders.
The benefits of a job statement
Creating a well-defined SOW is the first step towards executing any project. However, a good job statement can provide many other benefits. Here are some benefits of a job statement:
- A well-written work statement allows organizations to make informed decisions about buying and building trust with vendors and suppliers.
- It helps in reducing costs and maximizing productivity.
- It also helps in reducing risk Risk Management And avoiding disputes during project execution.
- SOW forms the basis of the project plan and ensures that the project will be completed on time.
Summary
A work statement in project management is an integral part of project planning. After determining the scope of the project, the project managers create a SOW document to list all the products of the project. This will help stakeholders understand all aspects of the project and allow the project to be approved if it meets their expectations. Therefore, a well-written SOW assists project managers in carrying out a project with all the details described in an official document.