by Greg Hoy
Every client/vendor relationship is based on a set of expectations, whether they’re stated or not.
SOWs and MSAs
A Statement of Work (SOW) is usually a document that accompanies yet another document, often referred to as a Master Services Agreement (MSA). They’re the Lenny and Squiggy of legal agreements. The MSA is usually the governing document for the entire relationship, while the SOW usually deals with the specifics of a single project or scope of work.
A SOW typically addresses such things as:
- Requested Services—Describing what the project actually is.
- Project Phase Descriptions—Detailing how many phases, and what goes into them.
- Project Duration and Milestones—Estimating how long the project will take and what milestones occur along the way.
- Resource Hours—How many hours are allocated to each phase.
- Billing Rates—What you’re charging for each practitioner in your company.
- Proposed Tasks & Deliverables—What you’ll do and deliver, and when.
- Commencement and Completion Dates—When you’ll start, and if all goes well, when you’ll finish.
- Service Fees—How much you’re charging for the entire engagement.
- Payment Schedule and Terms—How much you’ll get paid, and when.
- Listing of Representatives—Who the primary players are on each side, or at least what their roles are.
