Get Preqin Quarterly: Infrastructure, Q1 2012

Also known as a scope of work, a statement of work (SOW) defines the scope of a project between a business and a client. Keep in mind that an SOW only covers the specifics of a project—it doesn't take the place of a contractor agreement that goes into details like NDAs and deliverable ownership.

Common elements of an SOW include: Project objectives. Project scope. Major deliverables. Tasks that support the deliverables, and which party will complete them. Timeline for completion of work. Location of work and resources, equipment, and facilities needed. Payment costs, terms, and deadlines.

Each signed document signifies an important step towards building trust between you and your vendor. Initially, you need to feel comfortable with sharing project information (NDA), then agree to general terms of collaboration (MSA), and finally, outline in detail how you are going to work together (SOW).

An SOW can be similar to, but is not exactly the same as, a scope of work agreement. Scope of work agreements define the objectives of a project, including the ways that the completion of a goal is measured. An SOW may include a detailed scope of work section, but a good SOW will include more than that.

Difference between an SOW and a master services agreement (MSA) An SOW provides details surrounding a specific aspect of the relationship, like a project or service agreement, whereas an MSA defines the terms and conditions for the entire relationship.

Who writes the statement of work? Like most project management documents, SoWs are best written collaboratively. However, there are two main parties involved: the client or service provider and the company. SoWs need to be approved by two parties before work on your project really begins.

A master service agreement sets forth the terms and conditions that govern the relationship between a supplier and a customer. It covers such matters as delivery, quality, price, and timeframe. A service level agreement (SLA) sets forth specific obligations of a service provider with regard to quality, time, and cost.

While SOW regulates the services to provide, SLA assigns metrics to measure them. In this case, the company guarantees high-quality project delivery as a result. A service-level agreement contains: Business objectives to achieve.

Also known as a scope of work, a statement of work (SOW) defines the scope of a project between a business and a client. Keep in mind that an SOW only covers the specifics of a project—it doesn't take the place of a contractor agreement that goes into details like NDAs and deliverable ownership.

Common elements of an SOW include: Project objectives. Project scope. Major deliverables. Tasks that support the deliverables, and which party will complete them. Timeline for completion of work. Location of work and resources, equipment, and facilities needed. Payment costs, terms, and deadlines.

Each signed document signifies an important step towards building trust between you and your vendor. Initially, you need to feel comfortable with sharing project information (NDA), then agree to general terms of collaboration (MSA), and finally, outline in detail how you are going to work together (SOW).

An SOW can be similar to, but is not exactly the same as, a scope of work agreement. Scope of work agreements define the objectives of a project, including the ways that the completion of a goal is measured. An SOW may include a detailed scope of work section, but a good SOW will include more than that.

Difference between an SOW and a master services agreement (MSA) An SOW provides details surrounding a specific aspect of the relationship, like a project or service agreement, whereas an MSA defines the terms and conditions for the entire relationship.

Who writes the statement of work? Like most project management documents, SoWs are best written collaboratively. However, there are two main parties involved: the client or service provider and the company. SoWs need to be approved by two parties before work on your project really begins.

A master service agreement sets forth the terms and conditions that govern the relationship between a supplier and a customer. It covers such matters as delivery, quality, price, and timeframe. A service level agreement (SLA) sets forth specific obligations of a service provider with regard to quality, time, and cost.

While SOW regulates the services to provide, SLA assigns metrics to measure them. In this case, the company guarantees high-quality project delivery as a result. A service-level agreement contains: Business objectives to achieve.