Statement of Work For [Project Name]

Document Control
Document Information

Document Id Document Owner Issue Date Last Saved Date File Name

Information [Document Management System #] [Owner Name] [Date] [Date] [Name]

Document History
Version [1.0] Issue Date [Date] Changes [Section, Page(s) and Text Revised]

Document Approvals
Role Project Sponsor Project Review Group Project Manager Quality Manager (if applicable) Procurement Manager (if applicable) Communications Manager (if applicable) Project Office Manager (if applicable) Name Signature

Date

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

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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.

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
It is important that the supplier organization is well established in the market place and is not likely to cease trading during the life of this project. The supplier must currently be delivering product within a relevant local market segment to provide confidence that s/he can deliver the required product. Proven delivery to other similar customers is critical to ensuring that the supplier has a valid supply chain.

Supplier must have a minimum of 5 years trading in the relevant market segment. Supplier must operate in the computer sales market within the USA. Supplier must have provided similar product to at least 3 similar customers who are able to act as reference sites within the last 2 years.

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
CH1

Product

Description
Latest specification computer Intel PC, including the following components: Screen (19 inch monitor) Computer unit (latest Intel processor) Accessories (keyboard, mouse) Latest Windows Operating System MS Office software suite. General consultancy services to assist with the management of the project, including: Quality assurance and auditing Project office management Accounting services.

Quantity
Number

Computer Hardware

CS1

Consultancy Services

Number

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 ID
CH1

Training Required?
Y

Training Description

No. Trainees
Number

All end-users to be proficient in the use of the 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 ongoing basis once the project is completed.

CS1

n/a

n/a

2.4 Documentation
Itemize any documentation to be provided with the product, as follows: Product ID
CH1

Docn. Required?
Y

Documentation Description

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

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 CashFlow reports.

2.5 Support
Describe the level of support required for each product, as follows: Product ID
CH1

Support Required?
Y

Support Description

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) N/A

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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 ID
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Equipment

Materials
The following materials are required: Deployment procedures Training course notes Support procedures The following materials are required: Quality Assurance audit procedures Office Stationery

The following equipment is required: Deployment hardware Training facilities Support facilities The following equipment is required: PC hardware and software Project Office facilities Accounting system

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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.
1 2 3 4

Item

SOW
2.2 2.2 2.3 2.3

Due Date
xx/yy/zz xx/yy/zz xx/yy/zz xx/yy/zz

Approver
Project Manager Project Manager Training Manager Training Manager

Computer hardware Consultancy services End-user training - intermediate End-user training - advanced

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.