Statement of Work©

For [Project Name]

Document Control

Document Information
©

Information
Document Id [Document Management System #]
Document Owner [Owner Name]
Issue Date [Date]
Last Saved Date [Date]
File Name [Name]

Document History

Version Issue Date Changes

[1.0] [Date] [Section, Page(s) and Text Revised]

Document Approvals

Role Name Signature © Date

Project Sponsor

Project Review Group

Project Manager ©

Quality Manager
(if applicable)

Procurement Manager
(if applicable)

Communications Manager
(if applicable)

Project Office Manager

(if applicable)

Copyright © 2000 Method123 Ltd i

Table of Contents

TEMPLATE GUIDE........................................................................................................ 1
1 INTRODUCTION....................................................................................................2
2 REQUIREMENTS....................................................................................................2
2.1 COMPANY.................................................................................................................................... 2
2.2 PRODUCT.................................................................................................................................... 3
2.3 TRAINING....................................................................................................................................3
2.4 DOCUMENTATION..........................................................................................................................4
2.5 SUPPORT.....................................................................................................................................4

3 MATERIALS AND EQUIPMENT..................................................................................5

3.1 USAGE........................................................................................................................................5

4 DELIVERABLES.....................................................................................................5
4.1 SCHEDULE................................................................................................................................... 5
4.2 ACCEPTANCE................................................................................................................................6

5 PAYMENTS...........................................................................................................6
5.1 INVOICING...................................................................................................................................6

6 CONFIDENTIALITY................................................................................................ 6
6.1 NON-DISCLOSURE..........................................................................................................................6
6.2 Sensitive Information.................................................................................................................6

Copyright © 2000 Method123 Ltd ii

Template Guide

What is a Statement of Work?

A Statement of Work (SOW) is a document which defines the procurement requirements of

the project in sufficient detail to enable potential suppliers to determine if they are able to
meet those requirements. The following list provides examples of types of requirements a
project may have for potential suppliers and their products:

 Company (size, industry)

 Product (type, number of years available)
 Training (level required)
 Documentation (provided with product)
 Support (available for product).
©

The SOW also outlines the expectations of the supplier in terms of the:

 Materials and Equipment (to be provided)

 Deliverables Schedule (and process for acceptance)
 Payments (of invoices)
 Confidentiality (of sensitive information).

When to use a Statement of Work

An SOW should be used whenever a formal Tender Management Process is undertaken

(i.e. whenever a product is required from outside the project and a preferred supplier has not
yet been chosen). It is critical to the tender process to clearly outline, in simple terms, the
procurement requirements within the SOW. If this is not achieved, it is less likely that the
actual procurement requirements of the project will be fully satisfied, thereby placing the
project at risk.

The SOW is the first document created as part of the Tender Management Process. It forms
the basis upon which the tender documents (RFI, RFP) are formed and is the core document
against which supplier responses are evaluated. The SOW is, typically, written by the
Procurement Manager and approved by the Project Manager. It is released to suppliers
along with the tender documentation and updated throughout the Tender Management
Process. ©

How to use this template

This document provides a guide on the topics usually included in a Statement of Work.
Sections may be added, removed or redefined at your leisure to meet your particular
business circumstance. Example tables, diagrams and charts have been added (where
suitable) to provide further guidance on how to complete each relevant section.

Copyright © 2000 Method123 Ltd 1

1 Introduction
Provide a brief summary of the project by describing the objectives, scope, deliverables and
milestones. List the generic types of product to be sourced from outside the project and the
reasons why.

2 Requirements
Provide the supplier with a detailed listing of the procurement requirements of the project.
This includes a description of the requirements of the supplier company, product, training
offered, documentation issued and support provided.

2.1 Company
List the requirements of the supplier company and the reasons why these requirements are
important to the project by completing the following table (includes examples):

Requirement © Reason

Supplier must have a It is important that the supplier organization is well established in
minimum of 5 years trading in the market place and is not likely to cease trading during the life of
the relevant market segment. this project.

Supplier must operate in the The supplier must currently be delivering product within a relevant
computer sales market within local market segment to provide confidence that s/he can deliver
the USA. the required product.

Supplier must have provided Proven delivery to other similar customers is critical to ensuring
similar product to at least 3 that the supplier has a valid supply chain.
similar customers who are
able to act as reference sites
within the last 2 years.

Copyright © 2000 Method123 Ltd 2

2.2 Product
Provide a detailed description of the specific products to be supplied by the external
organization by completing the following table:

Product ID Product © Description Quantity

CH1 Computer Latest specification computer Intel PC, including Number

Hardware the following components:
 Screen (19 inch monitor)
 Computer unit (latest Intel processor)
 Accessories (keyboard, mouse)
 Latest Windows Operating System
 MS Office software suite.

CS1 Consultancy General consultancy services to assist with the Number

Services management of the project, including:
 Quality assurance and auditing
 Project office management
 Accounting services.

It may also be beneficial to describe the usage of each product and the required capabilities.

2.3 Training
List the training requirements for each product by completing the following table:

Product Training Training Description © No. Trainees

ID Required?

CH1 Y All end-users to be proficient in the use of the Number

Windows Operating System and MS Office
software suite by the end of the course. Users
must be able to operate the software to an
intermediate level, thereby enabling them to
undertake their roles efficiently.

Two users must be able to operate the deployed

software to an advanced level to enable them to
problem solve and train other new users on an on-
going basis once the project is completed.

CS1 N n/a n/a

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2.4 Documentation
Itemize any documentation to be provided with the product, as follows:

Product Docn. Documentation Description

ID Required? ©

CH1 Y The following documentation is required:

 Operating Manual (how to configure the Operating System)
 User Manual (how to use the software suite)
 Technical Manual (how to solve basic problems)
 Support procedures (what to do if the user has a query /
problem)

CS1 N The following documentation is required:

 Quality Assurance Audit report (for each audit undertaken)
 Project Office procedures (standards, guidelines and policies)
 Monthly Balance Sheet, Profit and Loss Statement and Cash-
Flow reports.

2.5 Support
Describe the level of support required for each product, as follows:

Product Support Support Description ©

ID Required?

CH1 Y The following level of support is required:

 24 hour call center support to respond to end-user enquiries (1st
level support)
 24 hour technical support to respond to end-user problems
(2nd level support)
 8 hour working day support to resolve technology failures
(3rd level support)

CS1 N  N/A

Copyright © 2000 Method123 Ltd 4

3 Materials and Equipment
This section lists the equipment and materials to be provided by the supplier to enable
him/her to deliver the products (as per section 2.2 above).

3.1 Usage
List the equipment and materials to be provided by the supplier, within the following table:

Product Equipment © Materials

ID

CH1 The following equipment is required: The following materials are required:
 Deployment hardware  Deployment procedures
 Training facilities  Training course notes
 Support facilities  Support procedures

CS1 The following equipment is required: The following materials are required:
 PC hardware and software  Quality Assurance audit procedures
 Project Office facilities  Office Stationery
 Accounting system

4 Deliverables
Provide a detailed listing of the deliverables to be produced by the supplier.

4.1 Schedule
Complete the following table, listing each deliverable item, the relevant SOW section (as a
cross reference for more detail), the final delivery date and the party responsible for
approving its completion.

No. Item © SOW Due Date Approver

1 Computer hardware 2.2 xx/yy/zz Project Manager

2 Consultancy services 2.2 xx/yy/zz Project Manager

3 End-user training - intermediate 2.3 xx/yy/zz Training Manager

4 End-user training - advanced 2.3 xx/yy/zz Training Manager

Copyright © 2000 Method123 Ltd 5

4.2 Acceptance
Describe the procedures for granting acceptance of the deliverables to the project, thereby
authorizing supplier payment. For example:

 All deliverables produced by the supplier must be reviewed and approved by the
delegated Approver (see section 4.1)
 Each deliverable must meet the requirements outlined within this document
 Each deliverable must have been completed on or prior to the Due Date
 A satisfactory reason must be given if this was not achieved. ©

5 Payments
Identify the conditions under which payment will be made for products supplied and
deliverables produced by a supplier.

5.1 Invoicing
 Supplier invoices should be generated only for products already supplied and
deliverables already produced and accepted by the project
 Invoices should be submitted by the supplier monthly and payment should be expected
by the 20th of the month following the date of invoice
 Invoices should be dated on the last day of the month for which the product was supplied
and the deliverables produced.

6 Confidentiality
List the conditions under which sensitive information must be handled for the project.

6.1 Non-Disclosure
Identify whether or not a Non-Disclosure Agreement (NDA) will be required to be signed by
the preferred supplier to ensure that sensitive information is handled in a professional and
confidential manner.

6.2 Sensitive Information

Identify how sensitive project information relating to this tender should be handled by
external suppliers. For instance:

 During the course of this tender process, you may acquire confidential information
relating to our business, project and/or customers.
 You agree to keep this information strictly confidential at all times (even after the project
has been completed).
 You will not use it for your personal gain or the gain of any other person
 You may disclose confidential information only to the extent that such disclosure is
necessary for the submission of a formal supplier proposal
 This does not apply to information which must legally be disclosed, or becomes available
to and known by the public. ©

Copyright © 2000 Method123 Ltd 6