A statement of work is the part of a service contract that says what the provider will do, what the buyer will get, when it is due and how success is judged. In short: it turns a handshake idea into written facts. A clear one stops most arguments about scope before they start.
This guide explains what goes in a statement of work, how the federal government writes one, and how to keep the buyer and the provider on the same page. It is general education, not legal advice.
What a statement of work is
The Project Management Institute (PMI) cites the PMBOK Guide, which defines a statement of work as "a narrative description of products or services to be supplied under contract."
The same PMI article makes a useful point. The document should also say what the provider needs from the client to do the job, such as facilities or security access. A statement of work binds both sides, so it must name the duties of each.
Sources: Michael G. Martin, "Statement of work: the foundation for delivering successful service projects," PM Network, Project Management Institute, October 1998
Why it matters
Projects change. Prices move, dates slip and people ask for extras. The statement of work gives everyone a baseline to measure those changes against.
The PMI article puts it this way: without a detailed description of the work, you manage a project with an unknown goal. You have nothing to measure progress against, and nothing to judge a change request by. It also says that change does not by itself sink a project. Poor handling of change does.
The document also gives both sides a fair test for two key moments. One is when the work counts as done. The other is when payment is owed.
Sources: Michael G. Martin, PM Network, October 1998
The parts of a statement of work
No single format is required. The PMI article says there is no generally accepted standard, and each organization sets its own unless the client has one. Still, most good ones cover the same ground. A sample outline from that article includes:
- A description of the work, with assumptions and constraints.
- The services to be provided.
- Facility, security and training requirements.
- Reports the provider will send.
- Roles and responsibilities.
- The schedule.
- Pricing.
- Approval.
- A glossary of terms.
Two more items help in practice. List the deliverables by name, so no one has to guess what "done" looks like. Add a short out-of-scope list, so extras are clearly extras.
Sources: Michael G. Martin, PM Network, October 1998
How the federal government writes one
The US Federal Acquisition Regulation (FAR) is a public rulebook, and it shows what a careful buyer does. For most services, agencies use "performance-based" methods. Under FAR 37.102, this is the preferred way to buy services.
Under FAR 37.602, agencies should describe the work in terms of the results they need, rather than "how" the work is done or the number of hours to be provided. Say what the finished work must achieve and let the provider choose the method.
FAR 37.601 adds that a performance-based contract for services must include a performance work statement. It also needs measurable performance standards, plus a way to check the provider against them. FAR 37.603 says those standards set the level of performance the buyer requires, and they must be measurable.
A private buyer does not have to follow these rules. But the idea carries over. A result you can measure is easier to enforce than a promise to "do a good job."
Sources: FAR 37.102, Policy; FAR 37.601, General; FAR 37.602, Performance work statement; FAR 37.603, Performance standards (acquisition.gov)
Statement of objectives: a lighter option
Sometimes the buyer knows the goal but not the best method. The FAR allows a "statement of objectives" for this case. The provider reads it and proposes its own performance work statement.
FAR 37.602 says a statement of objectives must include at least six things: the purpose, the scope or mission, the period and place of performance, the background, the performance objectives (the required results), and any operating constraints. It does not become part of the contract. The provider's work statement does.
This path gives the provider room to be creative. It also asks the buyer to judge the provider's proposed standards, which takes care.
Sources: FAR 37.602, Performance work statement; FAR 37.603, Performance standards (acquisition.gov)
Common mistakes to avoid
- Vague verbs. "Support" and "assist" can mean anything. Use actions you can check, such as "deliver," "test" or "report."
- No acceptance test. If no one writes down how work is approved, each side will have its own view of "done."
- Silence on the buyer's duties. If the provider needs access, data or sign-off from the buyer, say so and give a date.
- No change process. Describe how a change is requested, priced and approved in writing.
- Rushing it. The PMI article notes that quick bid deadlines tempt providers to skip detail. A reusable template helps, but it must still be tailored to each client.
Put the document in front of everyone who will do the work before it is signed. Questions raised early cost far less than disputes raised late.
Sources: Michael G. Martin, PM Network, October 1998; FAR 37.602 (acquisition.gov)
Sources
- Michael G. Martin, "Statement of work: the foundation for delivering successful service projects," PM Network, October 1998. pmi.org
- Federal Acquisition Regulation 37.102, Policy. acquisition.gov/far/37.102
- Federal Acquisition Regulation 37.601, General. acquisition.gov/far/37.601
- Federal Acquisition Regulation 37.602, Performance work statement. acquisition.gov/far/37.602
- Federal Acquisition Regulation 37.603, Performance standards. acquisition.gov/far/37.603