A strong relationship between a service supplier, implementation advisor, or company is vital to the success of any implementation, integration, or execution of your advertising methods. Whereas the seller has experience within the services or products they’re offering, the institutional information of the consumer is simply as essential.
Whereas many firms work from a dialog to a proposal, to a handshake, there’s an infinite threat 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 put up, I had written concerning the steps it is best to take when launching your company. Included have been two vital contractual paperwork that I like to recommend:
- Grasp Service Settlement (MSA) – The overall contract masking the connection between our group and the consumer’s group. This has nothing to do with the precise mission 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 sources required to finish a selected mission or process.
When you’re doing ongoing work with a consumer, separating the 2 is right since you possibly can merely suggest every engagement with a brand new SOW however you don’t must 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 sometimes presents the SOW after which the seller walks by adjustments in these deliverables and the related finances.
What Sections Ought to Be In A Assertion Of Work?
The precise sections included in an announcement of labor can range relying on the character and scope of the mission, however typically, it ought to embrace the next:
- Introduction – This part gives an summary of the mission and its objective, in addition to any related background info.
- Scope of labor – This part outlines the precise duties and deliverables which are included within the mission, in addition to any exclusions or limitations.
- Goals and deliverables – This part outlines the precise objectives and outcomes of the mission, in addition to the precise deliverables that might be offered upon completion.
- Necessities – This part outlines any particular necessities or constraints that have to be met so as to full the mission, resembling 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 mission, together with any deadlines or milestones that have to be met. If it’s an ongoing relationship, it ought to specify the deliverables and their periodicity of supply. You should definitely embrace how typically conferences might be held and who is anticipated to be current.
- Assets – This part outlines the sources that might be required to finish the mission, 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 regularly element what our assist and coaching tasks are versus the consumer’s tasks – particularly because it pertains to third-party platforms.
- Funds – This part outlines the finances for the mission, 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 which will come up in the course of the mission and the way they are going to be managed. This could embrace any remediation which may be mandatory if surprising points come up… and they’re going to!
- High quality management – This part outlines the standard management measures that might be put in place to make sure that the mission meets the required requirements. It sometimes goes by the acceptance procedures and specifies who will approve the general deliverables.
- Change Requests – Particulars are at all times misplaced on this course of and purchasers will sometimes request further help or the seller might must 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 mission could also be terminated, in addition to any penalties or obligations which will end result from termination.
- Appendices – This part might embrace any further supporting info or paperwork which are related to the mission, such because the MSA, different licensing particulars, contracts, or technical specs.
And naturally, a very powerful aspect:
- Signatures – The title, signature, and date of the events which are 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 assessment the SOW after which interprets it into our mission administration platform… fastidiously documenting every deliverable, the timeline, and the accountable get together. The SOW is fastidiously sectioned and numbered in order that we will seek advice from it at any time when discussing it internally with our staff or getting clarification from the consumer.
By making certain your mission 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’ll require a change request.
Disclosure: At all times have an lawyer assessment your SOW and MSA earlier than distributing them to a consumer to make sure you’re not placing your enterprise in danger. Whereas it’s crucial that your lawyer evaluations your MSA, a assessment of your SOW template could also be superb.
