A statement of work – often called an “SOW” – is an important part of a technology contract. Here are three things to keep in mind when you are drafting and negotiating one.
Accurately define the services
The first thing to keep in mind when negotiating an SOW is to accurately and comprehensively define the scope of services. This benefits both the customer and the vendor. The vendor will know the SOW sets out a finite task list. That will help avoid scope creep. The customer can look at the statement of work and see whether the deliverables match the agreed-upon specifications.
Leave the legal language alone
The second thing to keep in mind when drafting an SOW is to focus on the technical, business and commercial issues, leaving the legal issues in the body of the agreement untouched. That way you don’t unwittingly affect the risk profile of the overall engagement.
You will amend the statement of work
The third thing to keep in mind is to recognize that you are likely going to amend the statement of work, or enter into subsequent statements of work. So you should use a good form that will enable you to add on these subsequent documents.