This is a guest post from Stuart Juggins, founder of Aardent. You can find more information about who Aardent are and what they can do for recruiters at the bottom of this piece.
What is a Statement of Work?
A Statement of Work or SoW in basic terms is a contract setting out the commercial agreement between two parties, which is used to define and document a set of objectives, outcomes, tasks, terms and financial conditions to be measured against.
The SoW is legally binding and as such should always clearly state the specific activities required to be provided, namely the Deliverables and Milestones. Any engagement that utilises a SoW should also detail all of the relevant payment conditions for the respective deliverables and milestones, stating conditions for when payments will be triggered.
The SoW will document all of the activity in detail that the chosen supplier (a contractor, consultancy etc.) and procurer (the client) is responsible for completing, along with the duration of the project / engagement and specifying how and when payments will be made. All of this activity will be based against the completion of specific milestones and can be paid on a time & materials, capped T&M or fixed-price basis.