SOW

As requested by [CLIENT]

for [PROJECT X]

Dated [ENTER DATE]

WHAT IS A SOW (STATEMENT OF WORK)?

  • A Statement of Work is a contract that defines a project's key deliverables. The completion of key deliverables represents a significant risk to MobiCycle Consulting, as your payment to us is conditional upon meeting milestones and targets.
  • MobiCycle Consulting's Statement of Work reflects the true nature of the work undertaken on behalf of our clients. For example,
      • Our employees are free to work as they wish, do not receive benefits from the client, have their own equipment; et al
      • Our contracts include a provision for immediate termination, assume full responsibility for service delivery; et al

WHY USE A SOW INSTEAD OF A STANDARD CONTRACT?

  1. Standard contracts are often based on time and materials. Employees of MobiCycle Consulting, who consult based on day rates, on projects for large and medium sized organisations in the United Kingdom, run the risk of being incorrectly classified as employees by either the end client or by the UK tax authority, HMRC. To avoid any misunderstanding, we have recently adopted a fixed fee, outcomes based approach to contracts with third parties.
  2. Employees of MobiCycle Consulting are not available to work on projects as a supply of labour, nor will they be able to accept offers of permanent employment.
  3. By undertaking work with MobiCycle Consulting in the UK, you agree not to create with our consultants either (a) a working environment or (b) a working relationship, which could be classified as falling "inside of IR35".
  4. By entering into a SOW with MobiCycle Consulting,
      1. You understand that any breach of provision 3 will result in contract termination,
      2. You agree to notify senior management at MobiCycle Consulting within 72 hours of the event, and
      3. Should you neglect to inform senior management at MobiCycle Consulting of the breach, you agree to be liable for any and all additional project costs and/or fines levied by HMRC in relation to our consultant(s).

PROJECT OVERVIEW1

This project involves the design and development of [PROJECT] for use by [Client Name].

Useful questions to answer:

  • What problems are to be solved or overcome?
  • How will the new project improve or solve your current issue?

PROJECT OBJECTIVES

This project proposes to achieve the following objectives:

SAMPLE OBJECTIVE 1: What standards must the new project fulfil?

SAMPLE OBJECTIVE 2: What functions must the new project have?

SAMPLE OBJECTIVE 3: How can the success of the project be measured?

DELIVERABLES2

Deliverables are items the client will receive from MobiCycle Consulting at key stages of this project. The items may consist of plans, specifications or draft versions of the final project.

After sending you a deliverable, MobiCycle Consulting may seek sign-off and/or invoice settlement from the client before we move on to the next stage.

As a client, you may independently track the completion of your deliverables. Following the project makes you less likely to express objections or require amendments post delivery.

PROJECT SCOPE3

The previous section offers a general introduction to the project. The project scope covers in detail what will be delivered. For example, a task list will be broken down in to comprehensible steps to be completed. Together, we will create a detailed plan to ensure stress free project management from us and to avoid scope creep from you.

Clients often ask for more features in the later stages of a project. If a task or project element is not listed in the original scope, MobiCycle Consulting has grounds to charge for the additional work.

PROJECT AIMS

The project scope of [PROJECT NAME] is as follows:

1. SAMPLE PRIMARY AIM

Are you happy the design fully meets the project's requirements? Upon completion, do you, the client, have what you expected?

2. SAMPLE SECONDARY AIM

What features need to be built to complete the project? Meetings with our experts will ensure nothing has been missed.

3. SAMPLE TERTIARY AIM

Is the project finished? Access ongoing support options here.

PROJECT TASKS4

A project task list allows MobiCycle Consulting to methodologically lay out and describe in a step by step fashion, the actions necessary for success. We justify our fees for your project by helping you gain insight into the work that goes on behind the scenes.

The tasks required to achieve the scope (as described above) are as follows:

SAMPLE TASK 1: DESCRIBE THE FIRST MAJOR TASK

What is the first logical step MobiCycle Consulting must take in order to produce work that will move the project along to the middle stage? After this task, we will seek client sign-off and/or invoice settlement before we move on to the next stage.

SAMPLE TASK 2: LEAD ON TO THE SECOND MAJOR TASK

This second major task could represent up to 70% of the work that MobiCycle Consulting will plan to undertake.

SAMPLE TASK 3: THE FINAL MAJOR TASK

This step represents the final 30% of work that MobiCycle Consulting must do to finish the project.

COMPONENTS5

Components are normally essential items that you must deliver to your client to make everything work and hang together.

It may be useful to spread the delivery of components so that a) your client is not overwhelmed and b) so that you can hold something back to guarantee your invoices are settled. Some examples are below:

COMPONENT 1: USER DETAILS

With the best system in the world, without Account/Login details, Passwords, or Access Codes absolutely nothing can be done

COMPONENT 2: SECURITY / AND OR BACKUP

How will your product/ system / design be protected? How often will it need updating or maintenance? Are there any guarantees?

COMPONENT 3: TRAINING DOCUMENTS

If you are able to deliver bespoke training or instructions to your client on how to use the product you have delivered for them, those feelings of excellent customer service will grow exponentially and boost the chances of your company receiving a glowing review.

PROJECT ASSUMPTIONS6

Here you should flag up to your client any assumptions you have made in order for the project to go ahead.

This step is a crucial aspect of any carefully planned project and allows foresight for any problematic areas. This is also a great way to clarify communication, as there may be assumptions that your client (or indeed that you) have not thought about and need adding.

Needless to say, it's also vital that your client sees and agrees to these. Here are a few assumption examples.

  • You will provide digital sign off for each listed stage when required to do so before the project may continue.
  • The client will provide necessary material (written or otherwise) that you require for the project's completion.
  • Location access, materials or equipment will be available when required
  • Etc...

KEY MILESTONES7

Making a plan like this is just as much in your favour as it is for your client. Putting key milestones in clarifies the stages the project will evolve through and will be critical to refer to.

We have drafted the below schedule for this project and its relevant stages:

FINAL COSTS & INVOICE SCHEDULE8

An outline of the costs for the design, development and testing of the site is estimated here followed by the total:

ACCEPTANCE

To accept the conditions set out in this Statement of Work, simply type your name below.


_____________________________________________________________


We look forward to working with you on [PROJECT NAME].

NOTES*

1. The scope and tasks required to complete this project will follow the timelines outlined within in order to deliver the components at the associated costs listed.

2. A list of deliverables and assumptions is included herein.

3. The scope of this project are limited to the above listed items and tasks. Any additional items will be counted as out of scope, and may only be added with separate authorisation and approval from [CLIENT].

4. Extra items may only be added through the use of separate SOWs.

5. Have a question? Just let us know!

6. If any of the above information is incorrect or incomplete, please inform us immediately so that the Statement of Work can be revised (if required).

7. NOTE: Electronic sign off will be required at each stage before proceeding to the next task.

8. This estimate is based on MOBICYCLE CONSULTING'S current understanding of the Project Scope and Tasks, as well as the Deliverables and Components set out in this Statement of Work. All invoices are inclusive of 12.5% VAT. All invoices are due and payable within <X> days of receipt by [CLIENT NAME]