What is a statement of work?

A statement of work is a document that is often used within the context of project management. Its main function is to describe certain work requirements related to certain services or goods. The benefit of a well-drafted statement of work is that it defines particular deliverables, services, or activities that need to be observed by all the parties involved.That said, it's important to point out that many terms and conditions contained in a statement of work depend on the provisions of a master services agreement. As a result, it's important to make sure that the statement of work is drafted in consideration of the master services agreement's provisions.

What is a master services agreement?

A master services agreement is a type of contract where the parties can establish most of the terms that will govern future transactions between the parties. These agreements can cover a wide array of subjects, such as intellectual property rights, late payment penalties, warranties, and confidentiality expectations, among others. Also, although master services agreements are most often associated with arranging services, it is not all that uncommon for certain goods to be provided along with the services.

What type of services can be included in this agreement?

As a general rule, both a statement of work and a master services agreement can be used in most, if not all, service industries since most will require general terms and conditions that have become quite common. This means that both agreements are flexible enough to accommodate most uses, while still being legally binding contracts.

Does a master services agreement need to have a starting date?

Yes. As is the case for any other agreement, a master services agreement requires the parties to agree on when the contract’s provisions will begin to take effect. However, this does not always imply that a specific date must be set. Although this master services agreement allows the parties to indicate a specific date, the agreement’s effects could also begin when certain events take place, such as when all parties have signed it.

Does this master services agreement require additional terms to be valid?

Our master services agreement does not require any additional terms or conditions in order to be valid. Nonetheless, some particular arrangement might be required within certain industries. This is especially true if the master services agreement under which this statement of work will be issued does not include a particular term that is important to the parties. If that is the case, it is recommended that such a term be included and clearly defined.

Statement of Work

By outlining clear terms, this agreement will help create reasonable expectations as well as avoid any unnecessary confusion.

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Statement of Work

How To
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FAQS

When to use a statement of work

Describe specific work requirements
Have a clear idea of what services will be rendered
Set a project's start and end date
Agree on how goods and services will be paid

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Statement of Work

The main purpose of a statement of work is to describe specific work requirements in relation to goods and/or services. Keep in mind that a statement of work should be created in accordance with the master services agreement since these two agreements depend on one another.

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Master Services Agreement

Typically, a master services agreement would be signed first in order to establish the general terms of the relationship, then subsequently the parties will complete a statement of work in order to outline the specific requirements of the services that are being provided.

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Gather Information

Include certain necessary information, such as each party's address and current email. You will also need to provide information related to the goods and/or services that are covered by the agreement.

Answer Key Questions

Use the information you gathered to complete your statement of work. We make this simple by guiding you through each step. As you respond to certain questions, the document will adapt to accommodate your requirements.

Review

Once you have finished creating your document, you will be able to review and edit it as much as you like with Microsoft Word. However, if you decide that changes are not necessary, you can simply download the PDF version.

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