I’ve been freelancing for almost 6 years now (gosh, time flies). Initially I didn’t formalize my agreements with shoppers — no signed paperwork or contracts.
However as I gained extra expertise, I noticed that if I needed to develop my enterprise I needed to set floor guidelines and put them in writing. As soon as I launched contracts, which included an announcement of labor, working with shoppers turned a lot simpler.
There’s something about contracts that encourages (most) folks to comply with the principles. The extra work you tackle, the extra vital it’s to arrange it correctly.
Belief me, scaling your corporation with no contract is difficult, if not unimaginable, to do. So in at present’s put up I’m going to debate what an announcement of labor is and the way to create one.
Desk of Contents
What’s an announcement of labor?
The assertion of labor (SOW) is a doc that describes intimately the scope of labor to be accomplished inside a undertaking. It’s legally binding if included inside a contract. It contains data reminiscent of actions, deliverables, deadlines, and remuneration. This units the principles and expectations for future cooperation. Earlier than making a undertaking plan and agreeing to execute it, you’ll first create and signal the SOW.
Obtain this free undertaking proposal template from HubSpot.
SOW vs. Contract
A contract is a authorized settlement between two corporations, or an employer and worker, that describes the completion of particular work for an agreed price.
Whereas each SOWs and contracts are essential in enterprise and undertaking administration, they serve totally different features.
Let’s take a extra detailed have a look at how these two paperwork differ.
Objective
An SOW acts as an in depth undertaking plan that explains what should be achieved. It primarily focuses on duties and deliverables.
A contract, alternatively, creates a authorized framework for the connection between events. It units phrases and situations, which information the connection together with rights and obligations. It explains intimately what’s going to occur if one of many events fails to ship on the agreed phrases.
Content material and Construction
An SOW covers undertaking particulars, together with instruments, methodologies, timelines, acceptance standards, and many others. Not like a contract, it’s written in straightforward to grasp language, with none jargon.
Contracts embrace broader phrases and situations like legal responsibility, termination clauses, cost, and dispute decision procedures. They use formal authorized language to ensure enforceability.
Authorized Binding Nature
By itself a SOW will not be legally binding. It primarily acts as undertaking pointers. A contract is a standalone authorized settlement, which if breached can draw authorized penalties.
Degree of Element
An SOW is undertaking particular and subsequently very detailed. It describes what must be achieved and when, and may embrace technical specs. A contract is extra generic, providing a excessive stage overview of the connection. You should utilize one contract for a number of tasks.
Flexibility and Adjustments
SOWs could be modified if wanted; if the scope of labor adjustments or extra work is required, you’ll be able to merely add it to the SOW.
Simply keep in mind that you just may want approval from related stakeholders. It’s not as straightforward to change a contract. It normally requires formal amendments and adherence to authorized protocols. Additionally, adjustments can solely be made by mutual settlement.
Use Instances
A SOW is usually utilized in undertaking administration contexts, reminiscent of advertising and marketing campaigns or IT tasks that decision for particular deliverables and timelines. They’re notably helpful when a number of stakeholders are concerned.
A contract can be utilized just about in any context, together with vendor contracts, employment, and repair agreements. It’s particularly helpful to have one in place for long-term collaborations.
Assertion of Work vs. Scope of Work
A scope of labor is normally a part of an announcement of labor. Sometimes, it could actually act as a standalone doc. It contains data on undertaking measurement, workforce objectives, and steps required to finalize the undertaking. Whereas these two phrases are sometimes used interchangeably, they seek advice from totally different undertaking administration ideas. Listed here are the primary variations.
Objective
The principle purpose of an SOW is to provide an in depth overview of the undertaking and make it possible for everybody concerned understands their obligations and expectations.
The scope of labor, because the identify suggests, defines what a undertaking contains — what’s lined and what’s not. Defining particular duties and deliverables prevents scope creep.
Content material and Construction
An SOW covers undertaking goals, roles and obligations, timeline, cost phrases, and many others. It focuses on each the “what” and “how” (i.e., the methodology).
The scope of labor comprises detailed data on the duties and deliverables, reminiscent of an outline of the work to be carried out, undertaking goals and objectives, key milestones, constraints, and exclusions.
Authorized Binding Nature
Each of them could be legally binding in the event that they’re included within the contract. As standalone paperwork, they don’t have any authorized energy.
Degree of Element
Since an SOW covers many undertaking particulars past the scope, it’s extra complete.
The scope of labor focuses particularly on the work to be achieved, and contains high-level timelines and deliverables with out going into depth on administration and execution.
Flexibility and Adjustments
Modifying a complete SOW could be more difficult, because it covers a number of facets of the undertaking, and a single change can affect numerous elements. It may additionally require formal approval.
The scope of labor, alternatively, is less complicated to alter because it solely applies to the work concerned. Whereas it would nonetheless require stakeholder approval, a change gained’t essentially affect different components of the undertaking.
Use Instances
The scope of labor is a part of an SOW, and each are utilized in advanced tasks that want detailed data to ensure profitable supply. For easier tasks, the scope of labor can be utilized as a separate doc to outline a job.
Each of those paperwork are sometimes included inside a contract to supply a full overview of the settlement.
Objective of a Assertion of Work
The principle purpose of the assertion of labor is to make it possible for all events clearly perceive their roles and obligations. At any time when I begin working with a brand new shopper, I signal a contract that features a assertion of labor.
I define after they should ship undertaking briefs, what number of revisions they’re entitled to, what’s going to occur in the event that they fail to supply suggestions on time, and so forth.
Together with such particulars not solely helps me ship tasks on time, but in addition helps keep away from misunderstandings. It additionally permits for some flexibility in how we work collectively.
Varieties of SOWs
Design
Design SOWs revolve across the design and growth of companies or merchandise, however you’ve most likely figured it out by yourself. They listing particular design-related duties, like analysis, prototyping, and testing.
The contractor’s function is to ship a design, which is consistent with shopper necessities. The SOW outlines milestones for design evaluations and approvals.
The web site design template beneath provides you an thought of what such a SOW may appear like.
Degree of Effort
When you’re not sure how lengthy it’s going to take you to finalize the undertaking, or what sources you’ll want, it’s finest to go along with the extent of effort SOW.
Additionally known as time and materials, this method entails paying for the hours labored together with any supplies used to do the job.
This kind of assertion of labor is normally utilized in consulting companies or agile tasks, that are vulnerable to altering necessities.
Efficiency-Primarily based
Efficiency-based SOWs prioritize undertaking outcomes over the method. They supply an summary of the objectives and goals that contractors are obliged to attain. Funds rely on the achievement of the predefined metrics.
This kind of SOW is finest used when you’ve got a particular goal in thoughts, for instance, growing on-line gross sales by 30%.
Parts of an SOW
Let’s check out what must be included in an announcement of labor. Since I’m a contract content material marketer, I’ll use examples from my very own tasks associated to Search engine optimization weblog writing.
Introduction
This part explains the work that might be achieved and provides common details about the undertaking, together with who might be concerned.
In my case, the introduction could possibly be:
“This Assertion of Work outlines the Search engine optimization weblog writing companies to be offered by Anna Rubkiewicz for HubSpot. The undertaking entails creating optimized weblog content material to enhance natural search rankings, drive visitors, and interact goal audiences. Each events comply with the phrases outlined on this doc.”
Objective Assertion
The aim assertion addresses the explanations for beginning the undertaking. It discusses the primary goals, covers deliverables, and defines what success appears to be like like for various stakeholders.
Right here is an instance:
“The aim of this undertaking is to reinforce HubSpot‘s on-line presence by Search engine optimization-focused weblog content material. The important thing goals embrace growing web site visitors, enhancing search engine rankings, and offering worthwhile data to the audience. The undertaking goals to ship 12 high-quality weblog posts over the course of 4 months that align with the shopper’s content material technique.”
Scope of Work
This part lists all of the duties which must be accomplished on the undertaking. It offers an in depth overview of the processes, together with time frames (they are often estimated), and a undertaking scope which incorporates all of the very important data.
“Anna Rubkiewicz will present the next companies:
- Analysis and establish related matters based mostly on Search engine optimization key phrases offered by the shopper.
- Write 12 weblog posts (roughly 1,500 phrases every) optimized for search engines like google.
- Embrace inner and exterior hyperlinks the place acceptable.
- Present meta titles and descriptions for every weblog put up.
- Embrace graphics with alt textual content.”
I full tasks on a month-to-month foundation so if I comply with ship three articles per thirty days, I state within the SOW that I’ll ship all articles by the tip of the month.
The place the Work Will Be Completed
This half explains the place the work might be achieved, remotely or at a particular location.
It additionally particulars all of the gear and software program that might be used. I work remotely and talk with my shoppers by way of e mail or Slack, and ship all articles in Google Docs.
Duties
This part breaks down all of the steps you included within the scope of labor into extra detailed duties. Right here is an instance:
- Key phrase Analysis. Collaborate with the shopper to establish goal key phrases and matters.
- Analysis and Define Part. Analysis the subject and create a top level view.
- Writing Part. Draft and submit the weblog put up for shopper assessment.
- Revisions. Implement suggestions and finalize the weblog posts.
Milestones
That is the place you embrace the undertaking timeline, reminiscent of the beginning and end dates, billable hours, and some other scheduling specifics.
Since I normally work with shoppers long run, as an alternative of together with a end date, I ask them for one month’s discover in the event that they want to finish our cooperation.
Deliverables
This part lists undertaking deliverables with their due dates and detailed descriptions. It helps set expectations for all of the stakeholders. My deliverables would come with:
- 3 Search engine optimization-optimized weblog posts per thirty days (roughly 1,500 phrases every).
- Meta titles and descriptions for every weblog put up.
- A report summarizing key phrase analysis and matter choices.
Schedule
Within the schedule part, you’ll be able to embrace an in depth timeline for every deliverable.
Personally, I don’t embrace actual dates. As a substitute, I inform my shoppers how a lot time they’ve to finish a given step.
For instance, I give them three days to supply suggestions on the define and three days to assessment the draft. From my perspective, setting a time restrict is the one method to assure well timed undertaking completion.
Mission Success
This a part of the SOW defines the success metrics. It could possibly be the supply of high-quality weblog posts which are well-written and Search engine optimization optimized and generate natural visitors after publication.
Mission Necessities
Record every thing it’s worthwhile to efficiently ship the undertaking, together with instruments and gear.
At any time when the undertaking entails key phrase analysis, I ask the shopper to grant me entry to Google Analytics and export the key phrases they’re presently rating for.
I additionally put a powerful emphasis on common communication and well timed suggestions.
Cost Phrases
That is most likely one of the vital vital sections for any freelancer or enterprise proprietor. It outlines the way you’ll receives a commission — upfront or after delivering the undertaking — and particulars how a lot time the shopper has to settle the bill.
I subject all my invoices on the finish of the month and provides my shoppers two weeks to pay by way of financial institution switch.
Here’s a prepared work-order template from HubSpot that you may obtain to doc the work you’ve carried out and ask for cost.
Closure
The closure half explains how deliverables might be accepted and signed off. My shoppers merely should e mail me to substantiate that the ultimate draft has been accepted and no additional revisions are obligatory.
If I submit the ultimate draft and don’t hear again inside 5 days, I assume the article requires no extra revisions and shut the duty. Naturally, that is one thing that my shoppers are conscious of and have agreed to.
Begin each undertaking with an announcement of labor.
At first, you may assume that making a SOW is lots of effort.
However when you think about all the advantages — reminiscent of avoiding misunderstandings, setting clear expectations, dividing duties effectively, and guaranteeing well timed funds, it shortly proves to be price it.
Imagine me, you can’t develop your corporation or ship work on time with out creating some floor guidelines. And should you put these guidelines in writing, they’re going to have much more affect.
