A statement of work, or SoW, is an agreement between two parties to manage the scope and completion of a project. Today, many companies turn to SoW management to help them keep all aspects of a single project in line, including contractors and vendors. What are the benefits of SoW management? Let’s take a closer look.
What Are The Benefits of SoW Management?
The primary reason to do anything for your business is to minimize spending and maximize profit. With an SoW, you can build the cost savings into the process by ensuring that you have everything accounting for along the way. Your SoW will include all deliverables and receivables to understand better where money is coming and going.
An SoW will also give you accountability to help lower risk on any problem. It reduces the risk of miscommunication or misunderstanding as it spells out all aspects of the project. It’s a legally binding agreement that can help both the company and the customer better understand the scope of work and what to expect as they work together.
We are looking at a near-future where a contingent workforce will be playing a more significant role in projects of all kinds. Having an SoW in place lets you and the contractors better understand the expectations and know exactly when to provide completed work. Having things clearly spelled out before starting the project helps everyone organize their time and work better
In the end, every business decision should come complete with detailed analytics, and an SoW can help you with that process. Detailed reporting through project management software used to manage an SoW will help you collect the data necessary to assess the project along the way and compare the outcome to the stated goals.
Do you want to know more about having a statement of work in place?
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