STATEMENT OF WORK (UNDERSTANDING)

The statement of work (SOW), more informally known as a statement of understanding, is an agreement among the project manager, senior management, and the client. It describes—at a high level—what is to be built; the major milestone dates, responsibilities, assumptions, and constraints; and desired qualities of the final product.

The SOW offers four benefits. One, it encourages communication and, consequently, reduces misunderstandings. Two, it addresses assumptions early in the project. Three, it generates commitment by all three parties. Finally, it provides agreed-upon baselines to evaluate performance.

for Developing a Statement of Work (Understanding)

• Identify the major parties.
• Negotiate in good faith.
• Identify the major contents.
• Provide spaces for signatures or initials.
• Occasionally, revisit the SOW to gauge progress and determine need for renegotiation.