Statement of Work (SOW) Contract FundamentalsMarch 16, 2012 — 1,293 views
A statement of work (SOW) contract is a necessity to any business that offers a hired service. Construction companies, tax consultants and musicians alike can benefit from a written purchasing agreement, and the language of a SOW includes the fundamentals of a project that are non-negotiable. Before creating or signing such a document, a business must be aware of the details that are required by a proper contract.
The first thing that should be determined between a customer and a business is the purpose behind the project. The reason or driving force for completion needs to be explicitly stated on SOW contracts. Next, the physical work should be described, including all of the necessary steps that will lead to the ultimate goal.
The final areas that a SOW contract should touch on are the accepted standards of finished goods and products. This details what a customer has to approve before a task can be considered completed. Timely payments or a schedule of financing should also be strictly defined by technical language, as well as any miscellaneous costs that might be required.
With a proper statement of work, both parties can be assured of no surprises during a long-term project.