What is a scope of work?

An SoW is a comprehensive roadmap that outlines a project’s goals, deliverables, timelines and budget, as well as the roles and responsibilities of all parties involved. Think of it as a dynamic contract, communication tool and project management guide rolled into one. You create one at the project’s outset and then continuously revisit and update it as needed.

How to create a Scope of work document

Below, we walk you through the typical process of creating a comprehensive SoW.

Step 1: Project initiation and discussion

Start with a thorough discussion with your client and/or stakeholders to gain an understanding of their goals and expectations.

• Ask specific questions to uncover pain points and desired outcomes.
• Clarify the objective the project aims to solve and the value it will deliver.
• Establish a shared understanding of the project’s overall vision.

Step 2: Information gathering and research

Once you have a grasp of the project’s purpose, begin the research process.

• Conduct market research to understand industry trends and best practices.
• Analyze similar projects to gain insights into potential challenges and solutions.
• Gather data on resource availability and any constraints that might impact the project.

Step 3: Defining the project scope

The project scope clearly defines the boundaries and objectives of the project.

• Outline what’s included in the project scope (in-scope) and what’s excluded (out-of-scope).
• Be specific, avoid vague language and use measurable KPIs wherever possible.
• Get client agreement on the project scope in writing.

Step 4: Developing the work breakdown structure (WBS)

The WBS is a hierarchical breakdown of the project into smaller, more manageable tasks. It provides a visual representation of the project’s structure and helps you estimate time and costs more accurately.

• Start with the major deliverables and break them down into smaller tasks.
• Assign a unique identifier to each task.
• Include dependencies between tasks, if any.

Step 5: Resource allocation and timeline development

With your WBS in place, allocate resources to each task.

• Identify the skills and expertise required for each task.
• Assign team members or external resources based on their capabilities.
• Develop a detailed timeline, outlining the start and end dates for each task, milestones and key deliverables.
• Use project management tools like Gantt charts or Project Evaluation and Review Technique (PERT) charts to visualize the timeline and track progress.

Step 6: Budget estimation and payment terms

Outline the financial aspects of the project.

• Estimate costs for labor, materials, software and other expenses.
• Consider different pricing models:

• Fixed fee (total project cost)
• Hourly rate (cost per hour of work)
• Retainer (ongoing fee for a set period)
• Milestone-based (payment upon completion of specific project milestones)

• Clearly define payment terms, including:

• Payment schedule (e.g., upfront, milestone-based, upon completion)
• Methods of payment (e.g., check, bank transfer, credit card)
• Late payment penalties

Step 7: Drafting the SoW

Compile all the information you’ve gathered into a comprehensive SoW document.

• Use a clear and concise writing style, avoiding jargon and technical terms that the client may not understand.
• Structure the document logically, using headings and subheadings to make it easy to navigate.
• Include all the key elements discussed above: project overview, scope statement, goals and objectives, project deliverables, timeline, budget, payment terms, acceptance criteria, assumptions and constraints, change management process and termination clause.
• Attach any relevant supporting documents, such as a project plan or technical specifications.

Step 8: Review and approval

Before finalizing the SoW, conduct a thorough review with all stakeholders.

• Seek feedback from the client, project team members and other relevant parties.
• Address any questions or concerns that arise.
• Revise the SoW based on feedback to make sure everyone is aligned and satisfied with the document.
• Obtain signatures from all parties to formalize the agreement.

Step 9: Ongoing monitoring and improvement

Once the project is underway, the SoW becomes a living document.

• Regularly review and update the SoW as needed to reflect changes in scope, timeline, or budget.
• Use the SoW as a reference point for project management to keep everyone on track and focused on the agreed-upon deliverables.
• Maintain open communication with all stakeholders, using the SoW as a basis for discussing progress and addressing any issues that arise.

Sample scope of work

Below is a detailed example of a scope of work document.

Project Title: Company Website Redesign and Development

Date: August 6, 2024

Project overview: The goal of this project is to partner with a marketing agency to redesign and develop a new company website that aligns with our brand identity and drives lead generation.

Scope statement:

In scope: The marketing agency will be responsible for the following:

• Discovery and research: Conduct stakeholder interviews, competitor analysis and user research to inform the design
• Website design and prototyping: Create wireframes and interactive prototypes for client review and approval
• Website development: Build the website using a content management system (CMS) such as WordPress or Drupal
• Content creation: Develop compelling website copy and visuals that align with the brand’s messaging and target audience
• Search engine optimization (SEO): Implement on-page and technical SEO best practices to improve search engine visibility
• Website testing and quality assurance: Make sure the website functions flawlessly across different devices and browsers
• Website launch and deployment: Manage the website launch process and provide post-launch support and maintenance

Out of scope:

• Ongoing digital marketing services beyond the initial website launch
• Development of custom web applications or complex integrations

Goals and objectives:

• Increase website traffic by 30% within six months of launch
• Improve website conversion rate by 10% within three months of launch
• Enhance the user experience, leading to a decrease in bounce rate by 15%
• Establish a modern and professional online presence that aligns with the brand’s identity

Project deliverables:

• Detailed project plan with timeline and deliverables
• Wireframes and mockups of the new website design
• Interactive prototypes for user testing and feedback
• Fully functional website developed on a chosen CMS platform
• Compelling website copy and visuals
• SEO-optimized website content and structure
• Quality assurance and testing reports
• Website launch and deployment plan
• Post-launch support and maintenance for one month

Timeline:

• Week 1-2: Discovery and research, project plan development
• Week 3-6: Wireframing, mockups, and prototyping
• Week 7-12: Website development and content creation
• Week 13-16: SEO implementation, testing, and quality assurance
• Week 17: Website launch and deployment
• Week 18-21: Post-launch support and maintenance

Budget:

• Total project budget: $50,000

• Includes agency fees, design, development, content creation, SEO and post-launch support

• Payment schedule:

• 20% upfront upon signing the SoW
• 20% upon approval of wireframes and mockups
• 30% upon completion of website development and content
• 20% upon successful website launch
• 10% after the one-month post-launch support period

Acceptance criteria:

• Deliverables meet the quality standards and functional requirements outlined in the SoW
• Website design aligns with the brand’s identity and target audience preferences
• Website is responsive and functions seamlessly across different devices and browsers
• Website meets or exceeds the defined SEO criteria
• Project is completed on time and within budget

Assumptions and constraints:

• The company will provide all necessary brand assets
• The company will provide access to relevant website analytics and data

Change management process: Any changes to the project scope must be submitted in writing by the company and approved by both parties. Approved changes may affect the project timeline and/or budget, which you should discuss and agree upon before you implement them.

Termination clause: Either party may terminate this contract with 30 days written notice. In the event of termination, the agency will be compensated for work completed up to the termination date, based on the agreed-upon payment schedule.

Signatures

[Client Signature] [Date]

[Vendor Signature] [Date]

Why is an SoW useful?

An SoW sets clear expectations and leaves no room for ambiguity because it outlines what the client can expect in terms of deliverables, quality, timelines and costs. Clarity helps you manage expectations and prevent scope creep, which can occur when a project’s scope expands beyond its original boundaries.

An SoW also manages risks. By outlining potential challenges and detailing contingency plans, a well-crafted SoW helps you proactively identify and mitigate risks.

Plus, a scope of work enhances collaboration and drives success. A shared understanding of the project’s goals and deliverables leads to better communication and cooperation among team members. SoWs also help you deliver projects on time, within budget and to the client or stakeholder’s satisfaction.

Who needs an SoW?

While SoWs are often associated with large-scale projects, they can be equally valuable for smaller tasks. Here are some scenarios where an SoW is essential:

• Client projects: When working with clients, an SoW establishes clear expectations and a shared understanding of the project’s scope, preventing misunderstandings and contributing to client satisfaction.
• Internal projects: Even for internal projects, an SoW is crucial for defining project goals, allocating resources and aligning everyone within the organization.
• Collaborative projects: In collaborative projects involving multiple stakeholders, an SoW helps streamline communication, define roles and responsibilities and create a sense of shared ownership.
• High-risk projects: For projects with significant financial or operational risks, an SoW is crucial for identifying and mitigating potential obstacles.

Level up your project management

A successful project is a team effort, and an SoW can help make sure everyone’s working toward a common goal. It’s a tool for cultivating open communication and shared understanding from the outset, for a productive project environment where everyone can thrive.