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A Statement of Work (SoW) is an agreement between two businesses that typically defines key deliverables to be achieved. This will then be used to make a project satisfactorily completed and then will result in payment. They do not replace a contract and usually will be used alongside a contract, particularly where services are outsourced.
Typically, when supplying labour, assignments are delivered on a contract for services and paid on a time basis (e.g. an agreed hourly or daily rate), whereas working via a SoW will usually have payments agreed based on milestones that will need to be achieved.
Why Are They Important?
The main purpose of the SOW is to define the liabilities, responsibilities and work agreements between two parties. They will clarify all information and be written clearly and precisely. This makes them incredibly important as it will prevent misunderstandings of terms and services for both services.Who Is It For?
An SOW will be between 2 parties. This includes a party of the following:∙ Client∙ Buyer∙ Government EntityThe other party will be one of the below, which will then make up the two parties.
∙ Agency∙ Vendor∙ ContractorNWM and Statement Of Work
If you want to find out more about statements of work, you can talk to one of our highly experienced members of the team. If you’re curious about our umbrella company, you can visit our ‘Umbrella’ page on our website to find out more about our security and process. We are FCSA accreditation which is recognised as the industry’s compliance gold standard. Accreditation is awarded to umbrella employers who can demonstrate the highest industry standards.
