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9 Steps to Write a Scope of Work (SOW) for Any Project and Industry

🎁 Bonus Material: Scope of Work Template

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How to create a scope of work in 8 steps

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What’s an SoW in business?

How to write a scope of work, 5 tips for a stellar sow, scope of work examples, start your project off right.

Embarking on a project without a plan is like leaving for an unfamiliar place without a map. It’s not enough to start — you need to know precisely where you’re going and how you’ll get there. That's where a scope of work (SoW) comes into play: it provides the necessary directions, pinpointing every twist, turn, and pit stop.

The SoW’s purpose is to eliminate confusion, sharpen focus, and boost efficiency. Research from the Harvard Business Review shows large IT projects run, on average, 45% over budget , a common symptom of a lack of clear directives and a poorly defined project scope. Fortunately, a well-defined SoW reduces overspending risks — and much more. In this crucial document, every task has a rightful place and every team member knows their role and responsibilities .

The SoW is the backbone of any project It’s a strategic blueprint that lays the groundwork for success. This document isn't just about outlining project goals and requirements: it dives deep into the specifics, covering tasks, deliverables, timelines, team members, and all-important milestones. 

Thanks to this level of detail, your SoW ensures every member of the project team is on the same page, setting realistic goals that are pivotal for the successful initiation and execution of a project.

But don't just think of the SoW as another run-of-the-mill document — it's a power tool in the arsenal of project management . A meticulously crafted SoW enhances your team’s performance and keeps stakeholders happy by offering crystal-clear expectations. When every task has a home and every team member knows what part they play, the entire initiative is aimed for success.

How’s scope different from a statement of work?

The terms “statement of work” and “scope of work” share the same acronym (SoW), meaning the two are frequently confused.  

While scope pertains to the internal goals and expectations of a project, the statement of work takes things up a notch. It's a more comprehensive document that encompasses scope but also delves into project deliverables, requirements, schedules, costs, and stakeholder agreements. Think of it as a more refined and detailed map that keeps the project on track and minimizes the risk that objectives spiral out of control.

Scope creep, the sneaky phenomenon where project requirements balloon unexpectedly, highlights the importance of learning how to write a statement of work and set boundaries . In fact, the Project Management Institute reported that 52% of projects completed in 2018 experienced scope creep or uncontrolled changes that diverted them from their intended end goals. That’s a lot of wasted resources.

Writing a scope of work requires time and focus, but it’s a worthwhile investment. Projects of all sizes — whether they involve teams of four people or fifty — are susceptible to miscommunications and wasted time.

Without structure, boundaries, and regular check-ins, your staff could wind up investing hours of hard work into something that won’t see the light of day. And that’s the best-case scenario. Worst case, their misdirected efforts set the project behind and result in disgruntled clients, displeased higher-ups, or both. 

Here are some things you want to include in your SoW to avoid scope creep:

Everyone appreciates a clear map, especially when navigating a document packed with jargon or industry-specific terms . Including a glossary in the SoW ensures that everyone clearly understands each word, which is vital for effective communication . It’s your project's dictionary and a quick reference that wards off misinterpretations.

Problem statement

At the heart of every project lies a challenge or an opportunity — that's where the problem statement fits in. Writing a problem statement articulates what the project aims to solve, provides direction, and clarifies the purpose of the work to team members and stakeholders. 

Project milestones and goals

Milestones are checkpoints in your project's journey, while goals define the end destination. Setting both gives your project team well-defined markers of progress. Whether it's "Initial prototype developed" or "First 1,000 units sold," highlighting important achievements makes the journey measurable and more engaging.

Project deliverables

These are the tangible results your project promises. Clearly outlining what you’ll produce prevents miscommunication among team members and stakeholders. And when every person on the project knows exactly what they’ll deliver — no more and no less — it discourages scope creep. 

Administration

Defining the workflow in the SoW is critical to establishing a healthier workplace environment with streamlined processes and clear lines of responsibility. Outline who manages what, points of contact for different concerns, and the decision-making hierarchy. It's a playbook of sorts, establishing a strategy for efficient project completion.

Project timelines

A time management plan with clear start and end dates for each project phase keeps everyone on track. This way, you can adjust for bottlenecks or unexpected delays as the project progresses. Timelines provide clarity and prevent tasks from floating indefinitely, helping everyone understand the pace at which to move through their deliverables.

Project reports

Regular meetings are an integral part of upholding the scope of work. You don’t want anyone working in the dark because that’s a recipe for confusion and mismatched expectations . Decide on the frequency and type of status reports your team will implement. Using project management software, tools like Gantt charts, or simple presentations to share consistent updates keeps stakeholders informed.

Weekly check-ins and monthly reviews are great starting points. Just remember to specify the format — presentation, written document, meeting — and outline what these updates should cover. By setting this in stone, you keep everyone aligned.

Pieced together, a scope of work doesn’t just set expectations — it drives success. So, next time you’re at the project’s drawing board, make the SoW your first pit stop. Here’s how:

1. Set the project goals and milestones

Establish clear project objectives and major milestones — these are the foundation of your deliverables. This means defining SMART goals and significant milestones your team needs to meet along the way. Imagine you're building an e-commerce platform. The goal might be "Create a functional product page" or “Launch a mobile app.” Milestones are more specific checkpoints like “Land on a cohesive page design" or "Add Paypal to the checkout function." Achieving these markers means your project's on the right path.

2. Break them down and identify tasks

Turn your work goals into actionable initiatives by segmenting milestones into individual tasks, bite-sized pieces to cross out as you progress. For that website development project, these could be designing the layout, writing the code for the product page, and conducting user experience tests. No matter how small, each task brings your vision closer to reality.

3. Plan deliverables to comply with the goals

With your project goals in sight, map out tangible and intangible outcomes. If you’re designing a website, your deliverables might include a functional website, a user manual, and a training session for staff. Remember, deliverables showcase the value you're providing, so dedicate time to clearly highlighting what your team has to offer.

4. Establish acceptance criteria and boundaries

Make sure everyone's clear on the finish line. What must the final product have (or not have)? You need to eliminate any gray areas early on. For a software project, this could mean guaranteeing it runs on specific devices or platforms.

5. Create a project timeline

Project planning isn’t complete without establishing an action plan for your project timeline. A timeline helps every task align with the broader project objectives. Break down your tasks and pair them with start and end dates. If you’re planning an event, this might look like “Book venue  March 1” and “Send out invites April 1–7.” 

6. Establish project reporting processes

Constant communication is key to keeping projects on track. Whether daily stand-ups, weekly updates, or monthly reviews, set up systematic check-ins. Specify who reports to whom and how — be it through emails, presentations, or meetings.

7. Agree on payment terms

Clear payment terms, from payment schedules to disbursement conditions, safeguard against future conflicts. Decide if you’re going for a lump sum, installments, or payment upon delivery. Money talks, so make sure everyone hears the same message.

8. Check-in progress regularly

Consistent monitoring ensures the project stays on course, allowing for adjustments as necessary. If you're lagging, you know it's time to hustle. If you're ahead, maybe there's still room to work smarter . A well-crafted scope of work isn't just a document: it's a commitment. Make sure everyone is holding up their end and doing their best work.

A project without a clear work plan is like a ship without a compass — you might move, but you won’t necessarily reach your destination. Here are some tips to keep your SoW effective and functional:

• Be specific: Every detail counts, so go beyond broad strokes. Instead of generalities like "Design a website," specify functionality and features like "Develop a 10-page website with an integrated e-commerce platform." This clarity eliminates guesswork.
• Use visuals: Visual aids, from flowcharts to graphs, illustrate complex ideas and help stakeholders grasp the project's essence. For instance, a line graph could showcase projected sales growth if you're planning a sales strategy.
• Use short and clear sentences: Time management and simplicity are key. Instead of complex jargon, employ straightforward language so you know everyone's on the same page. Rather than saying, "The team, in its endeavor to maximize efficiency, will aim to...", go for "The team will maximize efficiency by..."
• Get stakeholder buy-in: Involve all parties, from team members to investors, to approve the SoW before finalizing. Their collective insights will bolster the SoW's efficacy and promote a smooth project execution.
• Review regularly: As the project progresses, adapt the SoW, reflecting any changes or adjustments necessary. Periodic reviews safeguard against scope creep and maintain team alignment with the project's evolving goals.

A great project is backed by a well-defined plan. To illustrate how this clarity makes all the difference, here are some scope statement examples:

• Web design project: Create a five-page website featuring a homepage and about us, services, blog, and contact sections. It should also have mock-ups, provide mobile responsiveness, undergo rigorous testing, and launch on October 3.
• Construction project: Prepare the two-acre site by July 15. Use grade-A concrete and steel to lay the foundation by August 1. Set the completion date for December 20.
• Marketing campaign: Achieve 15% customer growth and target the 18-25 age group. Post to Facebook and Instagram every day, create 10 videos monthly, and report growth every 15 days.
• Graphic design for a brand: Design a primary logo, secondary logo, color palette, typography guide, and five promotional banners. Also, deliver file formats for both print and digital to establish brand consistency across platforms.

When crafting a scope of work, remember that clarity breeds confidence. Your team should read it and know exactly what lies ahead — no guesswork, no assumptions.

Even the best ideas can fall victim to scope creep. While putting together this complex document is no easy feat, it’s not a step you should skip. Your project’s success depends on it. Otherwise, you risk spending precious time and money on outcomes that don’t benefit the project or the company. And no one likes to learn that their efforts were wasted on unimportant busywork.

Remember: with a comprehensive SoW, every challenge is an opportunity, and every milestone is a celebration. Don’t hold back. Forge ahead and bring your projects to new heights.

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Elizabeth Perry, ACC

Elizabeth Perry is a Coach Community Manager at BetterUp. She uses strategic engagement strategies to cultivate a learning community across a global network of Coaches through in-person and virtual experiences, technology-enabled platforms, and strategic coaching industry partnerships. With over 3 years of coaching experience and a certification in transformative leadership and life coaching from Sofia University, Elizabeth leverages transpersonal psychology expertise to help coaches and clients gain awareness of their behavioral and thought patterns, discover their purpose and passions, and elevate their potential. She is a lifelong student of psychology, personal growth, and human potential as well as an ICF-certified ACC transpersonal life and leadership Coach.

What’s a project scope, and how do you write one?

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Scope of work: Template, examples, and best practices

Protecting resources and avoiding scope creep is among the most important missions of a product manager, and there are myriad tools and techniques to help you do so. One such technique is writing a scope of work (SOW).

A scope of work serves as a roadmap for a given project or product initiative. Documenting the scope of work also helps product managers establish expectations and minimize misunderstandings by ensuring alignment among stakeholders.

In this article, we’ll define what scope of the work means in detail and provide a template to help you write a SOW documents to get all your stakeholders on the same page.

What is a scope of work (SOW)?

A scope of work is a comprehensive, project-based document that outlines the objectives, deliverables, and boundaries of a product development project. It serves as a reference and baseline document for all stakeholders involved in this new strategic move, including product managers, development teams, designers, and other key parties.

The scope of work is limited to new, big initiatives and strategic moves that require building a comprehensive set of features or a completely new product. It is not meant for small features and improvements.

The SOW document provides an in-depth overview of the product’s business objective, goals, and outcomes the team expects to achieve by introducing the product. It helps product managers define the scope and boundaries of the product by identifying the features that are included and excluded in a high-level manner. The SOW document also helps ensure that all stakeholders involved in the value creation process are aligned on what exactly the product team plans to build and by when.

The scope of work is a very business-oriented document. Thus, it should communicate the strategic business move in a very easy, nontechnical, and straightforward way.

Scope of work vs. work statement

The scope of work is an abstract view of the project. It contains a holistic view of the project, starting from the project objective and definition all the way to deliverables.

The statement of work, on the other hand, is a lower-level document. It describes the work to be undertaken for a specific task in the project.

The table below summarizes the difference between the two documents:

Scope of work template

The preferred approach to documenting a scope of work varies from organization to organization. The template below serves as a good, intuitive starting point for writing a SOW document for your major product initiative or project.

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We’ll demonstrate how to fill out the scope of work template using an example of developing a fitness mobile app.

1. Executive summary

In this section, you will describe briefly what is included in the document and outline the project in an abstract manner.

For example:

This scope of work document outlines the objectives, deliverables, and scope boundaries of developing our first fitness mobile app. The app is designed for trainers to offer their services online and get clients. The app will take three months of development, and we will include features 1, 2, and 3 in our initial release.

2. Project objective

In this section, you will talk about the business objective behind building the project and why it is essential for the overall organization’s mission, vision, and goals.

The objective of the project is to develop a mobile app for fitness trainers that can be the first in the region. The app will generate +$xxx in revenue each month and will allow us to sign more strategic partners.

3. Deliverables

This is by far the core section of the document. You will here list all features that will be delivered under this project’s scope, along with their tasks.

For us to mark this project successful, here is what we will deliver:

• Fully functional fitness mobile application compatible with iOS and Android platforms.
• Feature 1: The trainer will be able to create a profile
• Feature 2: The trainer will be able to set prices

Note: By stating “fully functional,” you avoid adding obvious tasks, like the creation of wireframes and building the frontend and the backend of the product.

4. Scope boundaries

This is your chance to protect your resources. This section is mainly driven by past stakeholder conversations during the requirement collection and analysis.

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In our initial release, we will exclude the following:

• Feature 1 — Payment using PayPal
• Feature 2 — Annual Subscription for trainers

5. Timeline and milestones

This can be your typical project plan section. In this section, you will provide the required time needed for each task and feature associated with the project.

• Phase 1 — Product discovery (2 weeks)
• Phase 2 — Requirement analysis (1 week)
• Phase 5 — Beta program (4 months)

6. Resources

In this section, list all team members needed for this project, along with a high-level overview of their roles regarding the project.

• Product manager — Overseas the product development process and prioritize features
• 3x backend engineers — To build the database and servers for our product
• UX designer — To create the prototypes and design system of our product

7. Dependencies

In this section, define which any other stakeholders who need to be accountable. This section is your chance to communicate any needed support from their side. Do you need a marketing launch plan? Include it here. Or do you need the user manuals to be created by the CX team? Communicate it here. If these dependencies are not resolved or executed before the end of the project, the project might face a serious chance of failing.

Final words

In conclusion, developing a comprehensive scope of work is an essential element of effective project management. The scope of work for product and project teams serves as a guiding document, delineating the project’s business objectives, deliverables, and scope boundaries. Through its clear articulation of the “what” and “how” of the project, it establishes expectations, minimizes misunderstandings, reduces the risk of scope creep, and fosters harmonious collaboration among all stakeholders.

It is important to know that the scope of work extends beyond a mere contractual formality; it is a dynamic tool that facilitates seamless communication and collaboration between all stakeholders. As a product manager or project manager, dedicating adequate time and effort to craft a detailed and well-structured scope of work yields long-term dividends. It empowers smoother project execution and elevates the probability of achieving favorable outcomes.

In summary, always bear in mind that the scope of work is more than a static document; it is a catalyst for effective teamwork and successful project delivery. Therefore, invest in the meticulous development of a comprehensive scope of work as a cornerstone for your endeavors, paving the way for seamless execution and better business outcome.

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9 Steps to Writing a Scope of Work [with Template and Example]

December 29, 2023 - Updated on May 12, 2024

When creating and executing a project, a shared understanding of the project’s objective—what the planned project aims to achieve, is the cornerstone of success. This understanding is precisely what the scope of work (SOW) brings. This invaluable document defines the project’s destination and the tasks required .

So, armed with this information, you can embark on a well-defined path, with clear milestones marking your progress. This clarity also allows you to align other critical elements, such as budgeting, equipment, and team members, ensuring they fit seamlessly into your project’s framework.

With the SOW in place, the foundational work is complete, providing a stress-free, clearly marked path of activities. Let’s take you through crafting an effective scope of work step by step.

Key Takeaways

• Scope of work outlines project elements like project management methodologies , goals, timelines, and resources, facilitating agreement among all stakeholders for clear expectations and seamless progress.
• This document provides clear direction, defines responsibilities, prevents scope creep, manages expectations, allocates resources effectively, reduces risks, and acts as a communication tool.
• Within it, you should include the project’s key aspects , such as project deliverables, milestones, timelines, reports, resources, roles and responsibilities, change management, and a communication plan.
• Writing a scope of work involves defining project goals, listing deliverables, determining tasks and timelines, outlining quality standards, identifying project goals, specifying roles, establishing acceptance criteria, and planning reporting.

What is a Scope of Work?

Scope of work is a document that outlines all the essential project elements —the ultimate project management goal , work methodology, project timeline, and resources.

Both project management and its team, along with external organizations like sponsors and stakeholders, take note of the contents of this document, ensuring unanimous agreement among all parties involved in the project. This way, they establish the foundation for clear expectations and ensure the project progresses seamlessly.

Therefore, the primary goal of an SOW is to offer a comprehensive understanding of the required accomplishments and the methods to achieve them. An SOW is a preventative measure against scope creep —the gradual expansion of project tasks beyond the originally agreed-upon limits.

By explicitly stating what’s included and excluded from the project, the SOW acts as a safeguard, minimizing misunderstandings and disputes as the project progresses. It’s a critical communication tool that fosters alignment among all stakeholders, ensuring everyone shares a common understanding of the project’s scope, objectives, and constraints.

Another meaning of the scope of work is that it provides a foundation for project planning , resource allocation, and risk management. It aids project managers in estimating costs, assigning tasks, and tracking progress.

Why is a Scope of Work Important?

Let’s look at the following list and see why the scope of work is so important:

#1. Clear Direction

The SOW is like a guide for the project . It points to what the project is for and what its goals are and shows everyone what needs to be done. This ensures everyone on the team is on the same page and going in the same direction.

#2. Defined Responsibilities

The SOW defines who is in charge of what by listing specific tasks and duties , which helps avoid misunderstandings and ensures that each team member knows their job.

#3. Preventing Scope Creep

Scope creep occurs when a project undergoes changes or additions that were not initially planned. The scope of work establishes project boundaries , preventing unauthorized changes and maintaining the project’s concentration on its original goals.

#4. Expectation Management

The SOW manages the standards of both the client and the stakeholders. It says what will be brought and when, so there won’t be any misunderstandings or future disputes.

#5. Allocating Resources

With a clear SOW, it is easy to see what resources are needed . This helps put the right people, time, materials, and money into the tasks, making optimal use of resources.

#6. Risk Reduction

The scope of work provides proactive risk management by informing everyone about potential risks and difficulties ahead of time. That includes backup plans in case something goes wrong.

#7. Communication Tool

The SOW is a tool for communication between involved parties in the project. With this tool, you can make sure that everyone has the same idea of the project goals , boundaries, and limitations.

What to Include in a Scope of Work

Precisely detailing essential project information results in creating a foundational scope of work, outlining the project’s details. This contract serves to familiarize all project stakeholders with its contents , and their endorsement signifies not only agreement but also a commitment to its execution.

Here are the key elements that the scope of work should include:

#1. Project Deliverables

Identify the project deliverables — target outputs (usually products or services)—that your team’s efforts and task execution will accomplish. This identification entails a comprehensive description of these outputs’ expected quality and quantity. It can also contain the applied methodology to create the planned deliverables.

By acquainting your team and stakeholders with project deliverables in this manner, you can ensure alignment between stakeholders’ expectations and the organization’s vision.

#2. Project Milestones

Pinpoint significant stages or checkpoints during the project’s progress. Project milestones facilitate monitoring and assessing the project’s advancement, offering opportunities for stakeholders to review and provide feedback before transitioning to the next phase.

Continuously providing such chances allows you to respond to stakeholder demands, satisfying all parties and successfully delivering the project.

#3. Project Timeline

Clearly define the start and end dates for the project . Establish each project’s phase’s start, duration, and end for better organization, focus, and accountability.

When determining project duration, realistically consider the time required for planned activities, account for unforeseen changes during execution, and allocate resources effectively.

#4. Project Reports

Specifying intervals for composing reports about essential project aspects within the SOW is also crucial. Mention the format in which these reports will be compiled and distributed among project participants.

These reports could encompass progress updates, status summaries, risk assessments, and other relevant details. Reporting mechanisms, such as regular meetings, email updates, or a designated project management platform, ensure stakeholders are informed about the project’s status and allow timely intervention if needed.

#5. Project Resources

Specify the resources required for the project, including personnel, equipment, materials, and budget. Specifying resource needs helps in proper allocation and prevents resource shortages that could hinder progress.

#6. Roles and Responsibilities

Detail the responsibilities of each member of the team and stakeholder involved in the project. This specification clarifies who is accountable for each aspect of the project and fosters effective communication and collaboration.

#7. Change Management

Outline the process for requesting and approving project scope, timeline, or other parameter changes. A structured change management process helps address unforeseen circumstances or evolving requirements without disrupting the project’s trajectory.

#8. Communication Plan

Describe how stakeholders will maintain communication , including regular meetings, reporting methods, and communication channels. Effective communication minimizes misunderstanding and keeps everyone informed and aligned.

How to Write a Scope of Work: A 9-Step Guide

Creating an SOW can be quite challenging, especially when dealing with complex projects, and many of them are exactly that. However, if you stick to this guide, you will save time and money, and your SOW will look professional. Here’s what you should do:

#1. Define the Project

Start with a concise overview of the project and state its purpose, objectives, and the problems it aims to solve . This sets the stage for shared understanding among all parties involved. For instance, if the project involves developing a new website for a client, explain the need for the website, the target audience, and the desired features.

#2. List Deliverables

Enumerate the specific deliverables that the project will produce. These are tangible outcomes that the client or stakeholders can expect. Be detailed and precise in describing each deliverable.

For example, if the project is about creating a marketing campaign, list items like a social media content calendar, promotional videos, and ad copy.

#3. Determine Tasks and Timelines

Break down the project into manageable tasks and activities. You can use a work breakdown structure to achieve that. After you get all those bits, assign estimated timelines to each task, considering dependencies and resources. This will provide a clear timeline for the project’s progression.

#4. Outline the Quality Standards

The quality is what brings customers and clients to you and, more importantly, keeps them with you. So, clearly define the quality standards that need to be met for each deliverable. This ensures that everyone has the same expectations regarding the final output.

If the project involves software development, quality standards might encompass code quality, user interface design, and testing protocols.

#5. Identify the Goals of the Project

Highlight the overarching goals that the project aims to achieve. These goals should align with the client’s strategic objectives and serve as the yardstick for measuring success. If the project concerns a research study, goals might include gathering specific data, conducting in-depth analysis, and providing actionable insights.

#6. Define Guidelines

Establish guidelines for communication, collaboration, and decision-making . This means that everyone knows how updates will be shared, how meetings will be conducted, and who has the authority to make crucial decisions.

Also, define which tools the communication and collaboration team will use, whether Discord , Asana , Trello , or any others, so everyone in the team can be on the same page. This promotes transparency and streamlines project execution.

#7. State Project Management Roles

Specify the roles and responsibilities of each team member involved in the project. This prevents confusion and ensures accountability. For example, if the project is a construction venture, roles might include project manager, architect, site supervisor, and subcontractors, each with their defined responsibilities.

#8. Establish Acceptance Criteria

Lay out the criteria that must be met for each deliverable to be accepted by the client or stakeholders. This ensures a clear definition of when a deliverable is considered complete. For instance, for a graphic design project, acceptance criteria could involve factors like resolution, color scheme, and alignment with the brand identity.

#9. Provide Progress Updates Regularly

Incorporate a section on reporting and progress updates and define how and when project updates will be communicated to stakeholders and among team members. This could involve daily, weekly, and monthly status reports, meetings, or online dashboards.

Scope of Work Example

Let’s see a simple scope of work example, which will help you understand exactly what a professional SOW looks like.

Project Definition

Designing and developing a user-friendly website for a small local bakery, allowing them to establish an online presence and attract more customers. The website will include a homepage, product catalog, about us page, contact form, and an integrated e-commerce platform for processing orders.

#1. List Deliverables:

• Create a homepage with bakery branding and an introduction
• Develop a product catalog showcasing bakery items with descriptions and images
• Craft an “About Us” page detailing the bakery’s history, values, and team
• Implement a contact for inquiries and feedback
• Integrate an e-commerce platform enabling online orders and payments

#2. Determine Tasks and Timelines:

Design phase (weeks 1-2).

• Gather bakery branding assets and style preferences
• Design homepage layout and visual elements
• Design product catalog and e-commerce interface

Development phase (weeks 3-6)

• Develop a responsive website based on approved designs
• Implement e-commerce functionality for online orders
• Integrate the contact form and ensure submission functionality

Testing and QA (weeks 7-8)

• Thoroughly test website functionality and compatibility
• Conduct user experience testing across devices and browsers

#3. Outline the Quality Standards:

• Make sure the website design aligns with the bakery’s branding and visual identity
• Verify that all features, including e-commerce and contact form, must function smoothly without errors
• Make certain the website is responsive and provides a consistent experience across devices
• Optimize load times for quick page loading

#4. Identify the Goals of the Project:

• Establish an online platform to showcase bakery products and attract customers
• Enable online orders to expand the bakery’s customer base
• Enhance brand recognition and customer engagement

#5. Define Guidelines:

• Reflect the bakery’s warm and inviting atmosphere in the website design
• Ensure product images and descriptions are enticing and accurate
• Make the e-commerce process user-friendly and secure

#6. State Project Management Roles:

• Bakery owner: Provide brand assets, product details, and feedback
• Web development team: Design and develop the website, integrate e-commerce, and conduct testing

#7. Establish Acceptance Criteria:

• Obtain approval for the website design from the bakery owner before development
• Make sure that all pages and features function without errors
• Review and receive final approval from the bakery owner before the website goes live

#8. Provide Progress Updates Regularly:

• Provide weekly progress updates to the bakery owner
• Conduct monthly meetings to review the project’s status and address any concerns

5 Best Practices for Writing the Perfect Scope of Work

Here are five best practices that will guide you in writing the perfect SOW, ensuring that your project starts on the right foot and proceeds without unnecessary hiccups.

• Be specific : Clearly define project details, objectives, and deliverables. Eliminate vague language to ensure everyone involved understands the project’s scope and its expectations.
• Use simple language : Opt for plain and straightforward wording. This enhances readability and minimizes the chance of misunderstandings among team members and stakeholders.
• Set realistic expectations : Ensure that the SOW is realistic regarding resources, time, budget, and other critical aspects. Unrealistic expectations can lead to dissatisfaction and project delays.
• Include flexibility : While being specific, allow flexibility to accommodate unforeseen changes or challenges. Clear procedures for handling changes will keep the project on track.
• Use visuals : Visuals are a straightforward way to explain complicated information to the stakeholders so they can understand all the parts of the project. Flowcharts, timelines, graphs, and tables all create a visual project roadmap that helps get more involved in the project.

Challenges in Managing the Scope of Work

In this section, we’ll explore the key challenges project managers and teams often encounter when dealing with a scope of work (SOW).

• Scope Creep . Constant monitoring and aligning the scope with emerging changes, including obtaining stakeholder approval before incorporation, is essential. This proactive approach prevents the emergence of scope creep—the unauthorized expansion of the project scope.
• Unclear Change Control . While change is inevitable, the absence of a structured change control process can turn even minor adjustments into significant disruptions. Establishing proper evaluation and approval mechanisms is crucial to preserve the integrity of the project’s scope.
• Inadequate Stakeholder Communication . Failing to engage stakeholders in regular and transparent communication can result in unmet expectations and dissatisfaction. Regularly revisiting and refining the scope and fostering collaboration among stakeholders and team members lead to effective results and satisfaction.
• Lack of Scope Documentation . Thorough documentation outlining the scope of work is paramount. Such documentation leads to clarity and facilitates referencing the original project agreement.
• Gold Plating . Adding new features without the client’s knowledge can disrupt focus and efficiency. Such additions outside the original scope can lead to project delays and client dissatisfaction. Communicating and jointly developing every idea with clients is advisable to ensure alignment.
• Rapidly Changing Requirements . In dynamic environments where there is a need for swift responses to new demands, requirements can shift quickly. Adapting to these changes while maintaining the project’s core scope necessitates agile planning and execution.
• Technical Uncertainties . Ventures into innovative domains with untested technical facets can introduce unforeseen obstacles. Collaborating with experts in that field can facilitate problem-solving.
• External Influences . Market trends, regulatory changes, or economic shifts can disrupt project scope. While these are beyond your control, proactive research and consultation with legal experts can prepare you to address potential challenges and resolve them efficiently.

Final Thoughts

Both the nature of your project and your business setup shape the structure and contents of your scope of work . Understanding the significance of having and regularly adapting and adjusting your scope of work is the key to successful management. Moreover, recognizing potential challenges empowers you to navigate them adeptly.

Successful project management is rooted in open communication, timely updates, and teamwork. Within this framework, the precise scope of work shields you from scope creep while providing a roadmap of activities to effectively achieve your overall objectives and goals.

With your carefully crafted scope of work, chart your project path and navigate it to successful completion!

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How to Write a Scope of Work (Example Included)

Team collaboration is vital to the success of any project. Some projects require only internal collaborators and resources to accomplish. Others require external collaborators especially when your internal capabilities are not sufficient enough to deliver the project successfully.

When collaborating with project stakeholders outside your organization, it is easy to miscommunicate and make presumptions that can hurt the progress of your project.

To avoid these situations and protect your project from scope creep , where new additions expand your project beyond the initial plan, you need a scope of work (SOW).

In this article, you will learn everything you need to know about writing an effective scope of work (SOW) for any project and industry.

Let’s get started.

What is Scope of Work?

Scope of work is an essential document that covers the working agreement between two parties on a project. This document ensures that all project stakeholders or anyone directly linked to the project agree on the tasks, expectations, and objectives as defined in the document.

For internal projects, organizations use project proposals while for projects involving outside teams, they use SOW. An effective scope of work includes a glossary, project objectives, schedule/milestones, deliverables, reports, individual tasks, payment information, expected outcome, and terms, conditions, and requirements.

• Glossary: This is the section where you include the meaning of all acronyms, odd, and technical words used in the document.
• Project Objectives: Another name for this is the problem statement. Describe the issue you are facing and what you want to achieve with the project here.
• Schedule/Milestones: Identify when the project should start and end. Break the project into smaller phases or milestones you can easily track.
• Individual Tasks: Clearly list out the tasks you need to complete to take the project from where it is to the desired state.
• Deliverables: What are the quantifiable deliverables you need at the end of the project? Is it a document, a product, or a service?
• Payment Information: Draw out an estimate of what the project is going to cost and how much the project team can expect to receive from working on the project.
• Expected Outcomes: You answer the question raised in your project objective or problem statement here. State the objective you want to achieve with the project and how you plan to measure and report on these expected outcomes.
• Terms, Conditions, and Requirements: Ensure all these are clear by explaining any terms, conditions, or requirements that external collaborators may not be familiar with.

A good SOW has to be clear and written in a simple language that both the internal and external team members can understand.

How to Write a Scope of Work Document

Writing a scope of work document is important to the success of any project involving outside teams. Scope of work details an extensive roadmap or framework guiding how to execute the project.

1. Project Objectives

The project objectives are statements that tell you what you want to accomplish at the end of the project. In other words, the project objectives describe the “what” of the project. It usually begins with a brief and concise explanation of the conditions surrounding the project and the objectives the project tends to accomplish.

Another aim of the project objectives is to predict the said outcomes of the project over a set course of time. The business objectives are the first and most important details in an efficient scope of work document. This sets the pace and details for other key elements.

You must not overcrowd your objectives with too many details. However, include all your project’s basic details with your project objectives. These details usually include the project’s name, the author, the version, the client’s name, and the current date. All this information is necessary and important to help any reader get a clear understanding of your project at first skim.

Provide a concise description of your project along with your project objectives. These descriptions usually include information such as project goals, background, statements as well as stakeholders involved in the project process.

2. Deliverables

This aspect of your scope of work document entails what exactly your project is to deliver. Project deliverables are the reason why you are executing the project for your client(s).

Your deliverable can either be a document, a report, a product, or a service that you need to identify individually in your scope of work document.

Efficiently breaking down your work schedule is one of the best ways of showing deliverables. In some cases, you may need to combine your project deliverables with your project timeline to have an idea of when each deliverable is due.

Your project deliverables are dependent on your project timeline. The advantage of combining your project deliverables with your timeline is that it helps you keep track of your project’s progress.

An example of project deliverables for a wedding ceremony.

3. Milestones

Projects are usually time-consuming and very tasking depending on the project’s nature. To overcome this complexity in your project’s scope of work, spread your project over a definite timeline. This helps to ensure you efficiently utilize the scarce factor of time properly to reach the project’s deadline.

Breaking down complex projects into simpler tasks for easier execution helps remove complexities from your project and ensures your project scope of work is easily understandable. Mark large and more complex phases of the project process by milestones.

Milestones are pre-set and predetermined tasks you have to do for the project within a specific time frame. They are also an efficient means of tracking the progress of the project.

When drawing up your project’s scope of work, you need to define key milestones needed in the document. These key milestones should include your project timeline and plans, detailed structures for meetings with various stakeholders, and project handoffs. Doing this gives your project scope of work a structured and well-organized outlook.

An example of set milestones for the planning process of a wedding ceremony in a detailed scope of work document.

4. Individual Tasks

Management of tasks is crucial when working with an external team. The project manager is responsible for breaking down large project scope and objectives into tiny and minute details. This aims to ensure you carry along all stakeholders directly involved or play significant roles in the project.

Note that tasks are not similar to deliverables. Tasks are direct and specific actions you need to take during the project process. Breaking your tasks into distinct phases in a bid to ensure efficiency in tracking down the accomplishment levels of the assigned tasks is a good practice.

Identify all tasks and subtasks and draw up a plan to execute them. Include details of the expected timeline to complete assigned tasks and the contact information of stakeholders assigned the tasks. This helps to hold various stakeholders accountable and ensures the project does not surpass its set deadline.

An example of various tasks assigned for the planning of a wedding ceremony.

5. Timeline

A project timeline is an efficient road map acting as a check and balance throughout the project process. This section of the scope of work document details the major phases in the project and timelines for their duration.

Account for due dates and project milestones in this section of your project’s scope of work. The project timeline helps to point out various stages in the project where the project deliverables are ready for utilization. This is essential to the overall planning of the project.

An efficient project timeline should include the overall time frame detailing when the project is to kick off and be completed. What you expect to achieve at various stages of the project and project milestones are also crucial inputs in your project timeline.

An example of a list of the timeline of events for the successful planning of a wedding ceremony.

6. Project Reports

Project reports are vital and key elements in your scope of work document. Reports aim to give a broad view of various project processes. It details the steps taken at various project stages and the outcome.

You need to generate project status reports at different points in the project’s life cycle. Account for every decision made in your project report.

Consistent and timely reports on the status and progress of your project are what make up a well-detailed project report. Project reports are formal records of the progress of your project. They help to communicate if your project is meeting the project’s schedule or not.

Your project’s scope of work should include a detailed description of the mode the project report will take and the frequency. The project sponsor receives project reports to track the progress of the report. Project reports give the project sponsor an idea of all the activities and progress ongoing during the execution of the project.

Detailed below is a report on the planning process of a wedding ceremony.

7. Adoption Plan

Adoption plans are usually left unaccounted for in many SOWs. This is because it is not considered one of the key elements of a good scope of work document. However, this notion is wrong. The adoption plan is a valuable element to include in the scope of work.

An adoption plan details how to achieve deliverables. The project manager is responsible for ensuring the efficient adoption of the project. In most cases, your project team helps to lessen this burden by creating an efficient adoption plan with necessary protocols in place in the event of changes to the scope of work in the future.

Scope of work document is usually drawn up at the start of the project's life cycle. Usually, there may be no need to make changes before the conclusion of the project. Account for significant change in the project’s adoption plan.

Project stakeholders should agree on a protocol for the execution of the adoption plan in case of any eventualities. This ensures a mutual understanding between the client and the project manager.

8. Payment Information

Every efficient and well-detailed scope of work document always contains payment information that shows the benefits the project stakeholders tend to gain for the successful completion of the project. This part is a very critical aspect of the scope of the work and is usually the last section of the scope of work.

As simple and easy as the payment information may seem, it tends to pose a lot of bottlenecks if not properly scheduled and implemented. After the successful completion of a project, all project stakeholders expect to be duly compensated for their various roles in the project.

Your scope of work document should contain payment information, payment terms, and conditions. It should also include the most suitable payment mechanisms to ensure a fast and hitch-free payment system.

Promptness and accuracy in delivering payment are essential. The process should be as transparent as possible to avoid backlogs of problems and complaints.

Simple Scope of Work Example (Easy-to-Use Template)

To understand the scope of work, let us create a sample project and draw up a scope of work document for it.

Project Details

Project Title: Football Competition Planning

Document Author(s): E.J. Dennis, A.E White

Document Version: Version 2.0

Client Name: A.S Elizabeth

Current Date: December 1st, 2023

Project Overview

The successful commemoration of the football competition between 8 school teams in the Brooklyn area.

Project Deliverables

Deliverables 1: Invite List

Deliverables 2: Addresses of Attendees

Deliverables 3: Final list of invites

Project Milestones

Milestone 1: Selection of schools and collection of addresses in the Brooklyn area

Milestone 2: Sending out invitations to the identified schools administrative offices

Milestone 3: Final count of attendees

Individual Tasks

Task 1: Employment of an organizer for the project

Task 2: Printing and distribution of invites to the invited schools

Task 3: Selection of venue for the football competition

Task 4: Setting up the venue for the competition

Task 5: Arrangement of feeding, sport wears, and accommodation for invited schools

Project Timeline

Timeline 1: Jan. 1 – Decision reached on the invite list

Timeline 2: Feb. 1 – Collation of addresses of the various schools

Timeline 3: March 1 – Pick the design for the invitation letters and print it

Timeline 4: April 1 – Send invitation letters to the various schools selected

Timeline 5: May 1 – Final count of invited schools who has accepted to join the competition

Timeline 6: June 1 – Football Competition

Project Reports

Project Adoption Plan

Adoption Protocol 1: Check for new invites

Adoption Protocol 2: Reconfirm invitees addresses

Project Payment Information

The payment is per milestone completed and the payment medium is via PayPal or wire transfer.

Tips for Effective SOWs

In the process of drawing up your scope of work document, consider the following tips to write effective scope of work documents.

• Specificity: Execute the scope of work document within the project’s framework. This ensures effective coverage across all stakeholders involved in the project. Ensure your scope of work is as specific as possible when detailing key elements of the scope of work document.
• Be Realistic: When drawing up your scope of work document, it is important to keep your set objectives and timeline as attainable as possible.
• Open Communication: Communication is a key factor for writing an effective scope of work document. All project stakeholders should openly vet the scope of work before approval. Effective communication allows project managers to have one-on-one interaction with other stakeholders which improves the acceptance of the scope of work.
• Use of Visuals: Whenever possible, show rather than explain the concept or message you want to pass across through the scope of work. Pictures and examples are useful for explaining your project goals and objectives to project stakeholders. Project management software such as Monday.com, ClickUp, and Wrike have pre-designed scope of work templates you can edit to your taste.
• Concise and Brief: Keep your scope of work document as brief and straightforward as possible by only including important and basic information needed for the project.

How to Use a SOW with Agile Project Development

Scope of work document is an essential document used by project managers to manage projects successfully. Project stakeholders or companies who practice the agile project development approach raise many questions and issues.

One of the fundamental questions arising from this approach is how to create a detailed document like the scope of work and adapt it to the agile project development approach.

Despite this fundamental issue, every good and successful project is deficient without proper structures in place. SOW acts as a framework and guides for running a successful project.

Many companies who make use of the agile project development approach may not notice the full impact of the scope of work document at the start of the project.

The scope of work document may need to undergo substantial changes and adaptation for it to successfully coexist with the agile project development approach.

One of the best ways of using SOW with agile project development is by dividing the scope of work into distinct phases that you can track and account for.

Although some phases may contain more details than others, and requirements vary at different phases, the fundamental elements guiding the scope of the work are the same for every phase. The goal remains to have a successful project outcome.

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Anastasia belyh.

Anastasia has been a professional blogger and researcher since 2014. She loves to perform in-depth software reviews to help software buyers make informed decisions when choosing project management software, CRM tools, website builders, and everything around growing a startup business.

Anastasia worked in management consulting and tech startups, so she has lots of experience in helping professionals choosing the right business software.

Scope of Work: Definition, Examples, and How-To

How to write an effective Scope of Work for any project. Plus, some examples and a template to get you started.

What is a Scope of Work?

A Scope of Work is a document that summarizes project tasks, assignments, and deliverables and is an invaluable tool in project management.

According to the Project Management Institute, one of the top five reasons for project failure is poor planning. In fact, organizations waste about $97 million for every $1 billion invested, due to this poor planning. Ouch.

Producing an effective Scope of Work can guarantee that projects are properly planned and outlined, resulting in less wasted revenue and a higher rate of efficiency.

Read on to find out how to write a Scope of Work, as well as an example of how Collato can write your Scope of Work document for you!

Scope of Work definition

A Scope of Work is an agreement of the work needed for a project. It brings together all the most important elements of your project foundation, including tasks, assignments, and deliverables. They define what needs to be done in order to reach the project goal.

Statement of work vs. Scope of Work

A statement of work (SOW) is an all-encompassing document that lays a foundation for your project. The contents include goals, timelines, schedules, payment agreements, etc. But most importantly, your SOW consists of a Scope of Work.

But, when it comes to the difference between SOW and Scope of Work, there is a debate within the creative industry. Some argue that they’re identical documents, and others allege that they’re interconnected but still different.

We like to think of it like this: a Scope of Work is a section within your statement of work. Your SOW lists out all the criteria to make a project successful and your Scope of Work describes how exactly you’ll accomplish this. For example, if the project goal is to redesign a website, then the Scope of Work might include detailed information on how to create a new sitemap or better map out an ideal user flow.

Regardless of whether an SOW and a Scope of Work are the same or not, we can all agree that they both serve a similar purpose, to fulfill the project goals and objectives!

How to write a Scope of Work

Similar to any product document, every Scope of Work is unique. Let's dive deeper into the elements that should be included in your Scope of Work, with examples. Already want to get started? Use Collato to record your meetings with stakeholders and take your notes, then use the following template to instantly create a Scope of Work document based on what was discussed.

Free Scope of Work template

Need a little more structure when writing your Scope of Work? No problem. You can copy & paste the following template into Collato's template editor.

Overview and Objectives

• Overview Statement: [Provide a high-level overview of the project, including the problem statement and the issue to be solved]
• Project Objectives: [Describe the expected outcome of the project]
• Resources Required: [Specify resources required for project completion]
• Stakeholders: [List all stakeholders involved in the project with contact information]

Project Schedule

• Phase 1: [Describe the first phase with start and end dates]
• Phase 2: [Describe the second phase with start and end dates]
• Phase 3: [Describe the third phase with start and end dates]

Task Management

• Task 1: [Describe the first task with assignee and due date]
• Task 2: [Describe the second task with assignee and due date]
• Task 3: [Describe the third task with assignee and due date]
• Task 4: [Describe the fourth task with assignee and due date]
• Deliverables
• Deliverable 1: [List the first deliverable]
• Deliverable 2: [List the second deliverable]
• Deliverable 3: [List the third deliverable]

Out of Scope

• [Specify tasks or features not included in the project scope]

Success Criteria and Sign Off

• Criteria Element 1: [Describe the first success criterion and sign-off details]
• Criteria Element 2: [Describe the second success criterion and sign-off details]

Writing a scope of work has never been easier.

It’s no secret that task management is a fundamental part of any project, especially if your project requires cross-departmental collaboration or multiple stakeholders. That’s why you’ll need to include a breakdown of your project goal into smaller and applicable steps, or tasks, in your Scope of Work.

To better understand your project tasks, let’s create a hypothetical situation. Say you’re planning a vacation to Australia (uh, wouldn’t that be nice☀️). What needs to be done?

• Apply for a visa
• Book the flight
• Find an Airbnb
• Plan your daily excursions

These are the things (tasks) that you need to do in order to go on your trip (goal).

🛑 Make sure you don't confuse tasks with deliverables! Tasks are actions that are completed to make up your project goal, while deliverables are quantifiable work.

2. Deliverables

Deliverables are the end-product or service of your tasks. In other words, it is what your client will receive at the end of the project.

Using our last example, if your task is finding an Airbnb, a deliverable would be the booking confirmation. You completed this task, and there is a quantifiable service or product. The completion of your tasks and the accumulation of your deliverables make up a finished creative project.

Your deliverables can also be “stacked,” meaning that one deliverable can have its own deliverables. For instance, if the project goal is to build a website, your deliverables might be a website wireframe and website mockup.

💡You can combine your schedule from your SOW and your deliverables to get a 360 view of your project.

3. Point of Contact

Another helpful element of a Scope of Work is point of contact. Who will complete each task? By including a person for each task and deliverable, everyone knows their role in the project, right from the start. This leaves little room for miscommunication and unfinished assignments.

⚠️ Helpful hint: To really complete a Scope of Work and tie your whole project together, you also need to complete a statement of work, which includes information about payment, terms, milestones, and schedules. To find out more about what needs to be included, read our guide to writing a statement of work.

How to avoid scope creep

Watch out for scope creep, the sneaky way a project transforms from one thing to another. Scope creep is defined as “adding features and functionality without addressing the effects on time, costs, and resources, or without customer approval” (pmi.org). It can be the root cause of wasted money, low customer satisfaction, or unreached project goals.

Scope creep happens for a variety of reasons:

• Unmanaged and undocumented collaboration between clients and team members
• Lack of a solid initial project scope
• Uninvolved stakeholders
• Poorly defined assignments and requirements
• Unattainable or unrealistic tasks and deliverables
• Overall poor communication and collaboration

While project changes are inevitable, there are a few ways to avoid scope creep.

1. Document everything

Keep a track record of your internal and external interactions, whether that’s through a phone call, an email, or a meeting. This may seem obvious, but if a stakeholder requests a change to a design or a feature, then you want to document that in your Scope of Work.

🍦Sweet tip: If you're using Collato, you can record meetings and phone calls (in person or online!) and use them to create a scope of work document in seconds.

2. Make a schedule

Create a schedule to show any requirements, assignments, or due dates that need to be fulfilled. You can always refer back to this schedule to make sure the project is on its way.

3. Get sign offs

Make sure your Scope of Work (and better yet, your statement of work) is signed off by all participating parties. If you notice a stakeholder asking for something more than what was agreed upon, then you can deny the task or create a new project that incorporates it.

That being said, it’s important to add a section within your Scope of Work called 'out of scope.’ You can add any small assignments or tasks to this section that don’t fit the initial agreement. You can then make a new project or write up a new contact with your client.

Scope of Work example

We used Collato to write a Scope of Work for Dots, a fictional social media app. Using our Scope of Work template, we created the following example Scope of Work for the sharing feature on Dots:

The sharing feature will allow users to share content with each other in real time. This will allow users to collaborate on projects, brainstorm ideas, and share knowledge.

The objective of the sharing feature is to improve collaboration and communication between users.

Resources Required

The following resources will be required to develop the sharing feature:

* Engineering resources

* QA resources

* UX/UI designers

* Marketing resources

Stakeholders

The following stakeholders will be involved in the development of the sharing feature:

* Product managers

* Engineering managers

* QA managers

* Marketing managers

Milestones & Timeline

The following milestones are planned for the development of the sharing feature:

* Q1 2023: Design and development of the sharing feature

* Q2 2023: Beta testing of the sharing feature

* Q3 2023: General availability of the sharing feature

The following tasks will be required to develop the sharing feature:

* Design the sharing feature

* Develop the sharing feature

* Test the sharing feature

* Market the sharing feature

The following deliverables will be produced as part of the development of the sharing feature:

* Design documentation

* Development documentation

* Test plans

* Marketing materials

The following features are out of scope for the sharing feature:

* Sharing of sensitive or personal information

* Sharing of files larger than a certain size

* Sharing of files with certain file extensions

Success Criteria

The following success criteria will be used to measure the success of the sharing feature:

* Number of users using the sharing feature

* Number of shares per day

* Number of positive reviews of the sharing feature

Of course, a real Scope of Work will be much more comprehensive and will need more specific details. A Scope of Work should include, at the very least:

• Project objectives
• Schedule/Milestones
• Individual tasks
• Payment information
• Expected outcomes
• Terms, conditions, requirements

Transform your meeting notes into a Scope of Work

Leveraging AI to create a Scope of Work (SOW) can greatly enhance efficiency and accuracy in project management. By using Collato, you can save time and effort in composing the document, you’re provided a structured framework to include project objectives, schedules, tasks, deliverables, payment details, and more. Collato is a valuable ally in crafting and managing SOWs, enhancing the overall project's efficiency and success.

Here’s how it works:

You can use Collato to record your meetings and take your notes (just invite [email protected] to the meetings you want recorded). You can also upload any images, wireframes, sketches, or whiteboards you want included in your notes. Collato can then transform your notes into any document using templates.

So just pick the template you want, or create your own, and then watch the magic happen. To write the perfectly tailored AI-generated Scope of Work, follow these steps:

• Create a note: Record a meeting, write down your thoughts, or upload an image. Your notes are the sources of your documents.
• Create your document: Select a note you want to turn into a document. You can include as many notes as you wish to be sourced in your final document. Then, click "Create doc."
• Select a template: Choose a template from the template library, or create your own. You can also edit any template using the template editor.
• Customize your doc: Update the template descriptions to be exactly what you need your document to include. The descriptions function as AI prompting.
• Watch the magic happen: Once you select the template you want to use and have edited it to meet your needs, your document will be autofilled by AI, sourcing from the notes you've linked. You can keep the AI generated text by hitting "tab," or regenerate it by backspacing and hitting enter. You can also edit the text yourself.

Need to write more than just a Scope of Work document? No problem. Collato instantly writes any product document like PRDs , PR/FAQs, and Meeting Minutes, too.

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A Scope of Work (SoW) is a pivotal document that concisely outlines project tasks, assignments, and deliverables. It serves as a fundamental tool in project management, providing clarity and mitigating the risk of poor planning that can result in significant financial losses. The SoW encompasses essential project elements, including tasks, assignments, and deliverables, offering a roadmap to achieve project goals and is closely related to a Statement of Work (SOW), sharing the core objective of guiding and fulfilling project objectives.

To create an effective SoW, follow a structured approach that encompasses task definition, deliverable specification, point of contact assignment, and inclusion of critical project details such as schedules, milestones, payment terms, and specific requirements. This comprehensive approach not only guides the project but also minimizes the risk of scope creep, making the SoW an indispensable tool in project management. Leveraging AI tools like Collato can significantly enhance SoW efficiency, as Collato can instantly generate tailored Scope of Works from your notes, streamlining the process and contributing to overall project success.

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Tired of unclear project objectives, misaligned expectations, and creeping project scopes? Are your vendors or stakeholders confused about what to expect? Is your team unclear about project deliverables and what they need to do?

If you answered yes to any of the above, you can benefit from a solid scope of work.

A scope of work document can help to clear up any misconceptions or assumptions about your project and provide scope clarity.

In this article, we’ll dive into a scope of work, providing valuable insights, examples, and an easy-to-adapt template. We'll explore the power of a well-defined scope of work and how it can transform your project management experience.

What is a scope of work document?

Think of a scope of work document as your project's game book. One that outlines the who, what, when, and how of getting things done (work or tasks). This helps to make sure everyone involved knows their part. It also outlines precisely what the project boundaries consist of to help avoid any possible misconceptions.

In other words, it helps to avoid the dreaded “I thought this was included?” or “I thought that was John’s role?” moments.

‎In official terms, it is an internal document that defines the project’s boundaries, objectives, tasks, milestones, and deliverables. When done right, the project scope of work document has a ton of benefits (which we’ll go over later). It also links to the  project charter  and reinforces your project/business  mission .

Let’s say we are designing a website. The scope of work will break down the main work into tasks like wireframing, coding, testing, and launch. It’ll outline deadlines like finishing coding in six weeks and testing four weeks later, and list the products or deliverables that need to be produced by this project— the actual site and its iterations.

Scope of work vs. statement of work

If you work in project management, you might come across a similar (yet distinct) sounding document— the  statement of work (SoW) . While their purposes are somewhat interconnected, the scope of work and SoW play different roles in a project.

A scope of work document is primarily an internal compass that outlines the project regarding what is to be done. On the other hand, the SoW serves as a contractual handshake between you and the client. It's the nitty-gritty agreement (formal document) that includes payment terms and additional specifics.

‎Think of it this way: the scope of work directs your project team's efforts, while the SoW solidifies your commitments to the client.

Why do we need a scope of work?

There are several reasons to use a scope of work document, but we'll focus on the three most immediate and direct benefits.

Sets clear expectations for stakeholders

Misaligned expectations can be a project's Achilles' heel!

A well-crafted scope of work sets the foundation for mutual understanding. Since is contains detailed descriptions (and timelines) of the work,  stakeholders  can see what's expected. No more "I thought you meant…" moments.

Outlines and defines the scope

Have you ever seen an artist create a masterpiece that starts as a chaotic swirl of colors? Outlining the  project scope  is like sketching the fine lines that turn chaos into clarity.

The project manager typically captures the project scope within the scope of work document by concisely and thoroughly outlining what's included (and excluded) from the project.

Sometimes, a project manager might do a project or business scope analysis before writing a scope of work.

The outline and scope, or parts thereof, are also used for other project artifacts, like the business case or project plan.

Prevents scope creep

Scope creep  is when project boundaries expand beyond predetermined constraints. It can turn your well-planned project into the Wild West of uncontrollable tasks, budget, and scope.

Imagine you want to build a house, have already designed it, and finalized the plans. You've decided on a modern style, but since you forgot to share that with the builders, the project has become a mishmash of other styles. So you end up adding more budget and time to get the desired result. That's a form of  scope creep .

You could have avoided the problem by using a scope of work. It'd have set clear perimeters that state what's part and not part of the  project scope .

Critical information to include in a scope of work

The scope of work document contains a few critical project details.

‎Let's go over what to include in yours (and how to collect the information).

Deliverables

Deliverables are the "what" in the project. They are the tangible results your project aims to achieve. Think about the concrete products, reports, prototypes, or documents that'll come from your team's efforts.

While they might not always be project milestones, they set the stage for significant project moments.

To draft a good project deliverable description, you need clarity, specificity, and purposefulness. Ask yourself these questions:

• What problem does it solve?
• What value does it add?
• What are the acceptance criteria that signal it's ready for review?

The timeline is the “when” of the project. It’s more than just a few dates on a calendar; it sets the pace of the project from start to finish.

Gather data like start and end dates, milestone deadlines, and critical phases to create your timeline.

With your data in hand, craft your timeline using tools like Gantt charts or project planning software like Motion. You can also map it on a whiteboard or outline it in a document.

Milestones are part of the “how” of the project.

Imagine you’re a mountain climber going up Everest without any signs, maps, or GPS. You'd be lost in a sea of uncertainty, right? Well, that's precisely what milestones prevent in your project.

‎By identifying milestones, you're essentially pinpointing the key achievements or stages that indicate progress in the right direction. These could be major deliverables, critical project phases, or significant decisions.

So, how do you go about flagging your milestones? Start by breaking down your project into its major components. Then, think about the moments that mark the completion of these components. These are your milestones.

We've already gone over the importance of a well-crafted scope of work and the clarity it provides. Now it's time to layer insight over that clarity with reports.

Reports give insights into project progress, and help you stay on track to deliver a successful project.

Think about adding different types of reports that help with specific insights. Here are three good ones to start ‌with:

• Status reports :  Gives a snapshot of where your project stands.
• Budget reports:  Provides a clear view of your project’s financial health.
• Risk assessments:  Identifies potential roadblocks (and strategies to deal with them).

Scope of work example #1: event planning

Let's dive into an example of an effective scope of work in action. Imagine we're planning an event for a project.

Project name:  Best Corporate Meeting Ever

Project summary:  Elevate a standard corporate gathering into an immersive experience.

Project timeline:  Starting on July 9, 2023 – November 23, 2023

Scope item 1. Venue selection:

Research, shortlist, negotiate contracts, and coordinate logistics for the perfect event setting.

• Assigned to:  The Venue Whisperer
• Deliverable:  Secured, contract-bound venue
• Due date:  Within four weeks

Scope item 2. Vendor management:

Identify top vendors, manage contracts, and ensure on-time deliveries for catering, entertainment, and decor.

• Assigned to:  Vendor Maestro
• Deliverable:  On-time catering, entertainment, and decor
• Due date:  8 weeks before the event

Scope item 3. Guest management:

Create guest lists, send invitations, manage RSVPs, and coordinate transportation and accommodations.

• Assigned to:  Social Connector Extraordinaire
• Deliverable:  Curated guest list, seamless attendee experience
• Due date:  10 weeks before the event

Scope item 4. Event timelines:

Craft a detailed  project schedule  and set key milestones for  progress trackers .

• Assigned to:  The Time Guru
• Deliverable:  Minute-by-minute event schedule, milestone roadmap
• Due date:  6 weeks before the event

Scope item 5. Budget management:

Manage expenses within allocated funds, track payment schedule, and alert if going over.

• Assigned to:  The Financial Virtuoso
• Deliverable:  Balanced budget and favorable ROI
• Due date:  Ongoing, throughout the project

Scope of work example #2: marketing campaign

Let's dive into another example, this time for a marketing campaign.

Project name:  Ignite Brand Education

Project summary:  Elevate brand visibility and engagement through a dynamic marketing campaign.

Project timeline:   Kicking off  on September 9, 2023

Scope item 1. Market research:

Identify target audience, analyze consumer behavior, and gather insights to inform campaign strategy.

• Assigned to:  The Insight Explorer
• Deliverable:  Refined target audience profiles and comprehensive consumer insights
• Due date:  Within 3 weeks

Scope item 2. Creative development and content creation:

Brainstorm innovative campaign concepts, design captivating visuals, and craft engaging copy to resonate with the audience.

• Assigned to:  The Creative Visionary
• Deliverable:  A portfolio of captivating campaign materials
• Due date:  6 weeks before launch

Scope item 3. Channel selection and media planning:

Strategically determine the most effective marketing channels, creating a media plan to maximize campaign impact.

• Assigned to:  The Channel Strategist
• Deliverable:  A comprehensive media plan detailing channel selection and campaign timeline
• Due date:  8 weeks before launch

Scope item 4. Measurement and analysis:

Define key performance indicators (KPIs). Track and analyze campaign results. Monitor website traffic and conversion rates. Assess the campaign's influence on brand awareness and customer engagement.

• Assigned to:  The Analytics Maven
• Deliverable:  In-depth analysis of campaign performance and its impact on brand metrics
• Due date:  Ongoing throughout the campaign; scheduled for every 2 weeks.

Write and deliver a scope statement in 3 steps

Now that you know what to include in your scope of work statement (and have seen some examples), it’s time to create your own in three easy steps.

1. Organize your data

In the previous section, we spoke about the key elements of a good scope statement and how to gather them. Now, you need to organize that information to populate the document.

2. Create the scope of work document

In this step, you simply populate your scope of work document with the information from step one.

You can either use and adapt the samples above or create your own scope of work document from scratch. Either way, avoid ambiguous language, vague deadlines, or simple scope items.

If you are creating your scope of work from scratch, you'll want to follow a logical order and lay the items out in a way that's easy to read (like in our examples).

3. Deliver the scope of work

Next, you'll want to review the scope of work with the project team and get buy-in from your internal stakeholders (which, by the way, helps you set expectations and helps avoid scope creep).

The scope of work document will be a living document. I.e. it might need  changes  over time, which means you'll want to keep this document live (and editable).

Implement your scope of work with Motion

Now that you know how to create and use a scope of work, it's time to implement  your own. Project management software like Motion can help you keep your project data centralized (no more app hopping) and execute your plan.

Motion offers a few key features that can help you plan and implement your scope of work tasks (and more).

One of Motion’s most powerful features calculates important task factors and arranges work for team members. It reviews priority, deadlines, and available working hours of all involved in the project and schedules those tasks at the best time.

Motion will also notify you if one of your project tasks is off track to help you minimize delays (which can eat into your scope).

‎With Motion's drag-and-drop task management feature, you can easily adjust the timing and sequencing of tasks. This flexibility can help you to adapt to changes, accommodate shifting scope priorities, and optimize your schedule as necessary.

‎Sign up for your  7-day free trial .

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How to write a scope of work: with templates & examples.

• What Is scope of work?
• What are the components of a scope of work?
• What are the benefits of writing a scope of work?
• Tips on how to write a scope of work
• Common mistakes to avoid when writing a scope of work
• How workamajig can help you manage your scope of work

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Writing an effective scope of work is critical for project management. Your scope affects your project’s budget and timeline. This means that managing project scope is essential to ensure your project’s success.

Planning, analysis, and collaboration are needed to craft a thorough scope of work. Done right, it can help you ensure clear client communication , manage your team’s focus, and oversee your project’s scope.

In this article, we will discuss how you can do that for your next marketing project. But let’s start with the scope of work definition.

What Is Scope Of Work?

The scope of work meaning is as follows: it is a formal description of the work you need to accomplish for your client. It defines what the client should expect and what they should not.

Your project scope will help you identify your project budget and timeline. It will also help you plan the resources needed to complete your project tasks.

Components Of A Scope Of Work

The most important details you need to include when defining scope of work are the following:

Problem Statement

Project objectives.

• Timeline & Milestones
• Deliverables

A problem statement concisely describes the issues a project needs to address. By outlining the problem that needs to be addressed, you’ll be in a better position to identify what needs to be done to meet the project's objectives. It's also a great way to get everyone on the same page and ensure everyone is working towards the same goal.

For marketing projects, your problem statement should support your client’s business goals. What hindrances do you intend to address with your campaign? Starting with a relevant problem statement is an excellent way to illustrate your investment in your client’s success.

Project objectives are the goals a project needs to achieve to deliver a successful project. They are often included in the scope of work for a project and, once agreed to, should be the basis for all decisions made in the project management process. 

Source: Project-management.com

Goals and objectives should be specific, measurable, achievable, realistic, and timely (SMART). Clear and quantifiable objectives allow you to track and report progress. They should also be attainable and realistic, given the available resources. As the project progresses, objectives should be re-evaluated and adjusted if needed. But from the beginning, the end goal for a project needs to be precise.

Milestones & Deliverables

Milestones mark the progress of a project, while deliverables are the actual products or services to be produced as part of the project. For example, if you’re organizing a product launch, a milestone can be booking all the sponsors. The deliverable that corresponds with this milestone can be the sponsorship contracts and the full delivery of the items or cash the sponsors promised.

Milestones provide an overview of the project and its progress, while deliverables give the scope of work or tasks to be delivered at a particular time. By tracking milestones and project deliverables , project managers can ensure that the scope of work is completed according to the plan. It's a great way to keep everyone on the same page and to ensure that the project is completed on time and within budget.

A project timeline (also known as a project schedule) is a document that outlines the scope of work and the timeline for completing it. It typically includes details such as the start date, end date, milestones, tasks, and resources needed. Crafting a project timeline is essential to keep a project on track and ensure that deadlines are met and all tasks are completed when they should. 

To make your project timeline, you should list your project milestones and deliverables and identify the tasks needed to complete them. You can then assign them to your team to determine which ones can be done in parallel and which must be done one after the other.

This can be tedious to do without project management software , so it’s best to use a tool like Workamajig –the only project management tool built specifically for agencies and creative teams –to make Gantt chart to organize your work.

A project budget is a crucial component of any successful project. It is a detailed plan of how much money and resources are needed to complete the project tasks. To consolidate a project budget, you’ll typically need to break down the activities that need to be completed and estimate the costs of each. 

A project budget is important because it allows project managers to identify potential risks and anticipate issues. It is an essential tool for project managers as it will enable them to create realistic and achievable plans.

Exclusions are an important part of any scope of work. They define what is not included in the scope of work. This helps avoid misunderstandings and ensures that all parties understand the project's limits. 

Exclusions can range from specific tasks or services to entire project elements. For example, when you take on a web design project, you can indicate that copywriting and populating the website with content will not be part of your scope. Or if you’re providing content creation services, you can show if creating original infographics and videos will also be exclusions to your work commitments.

Exclusions can also limit the scope of work to within a specific timeframe, such as excluding services occurring after a certain date. 

Exclusions should be carefully considered before signing off on any agreement. Knowing and understanding what is excluded from the scope of work can help ensure that all parties involved in the project are on the same page and all expectations are met.

Benefits Of Writing A Scope Of Work

Facilitates clear client communication.

A scope of work is essential for any successful client relationship. It removes ambiguity and helps to ensure that both parties have a clear understanding of the project. 

It outlines the objectives, deliverables, timeline, and expectations of the project, which helps avoid any confusion. It also sets up clear expectations for payment and costs, helping to prevent any unnecessary disputes. 

When there’s clarity and alignment, it’s easier to build trust between your team and your clients. It shows your client that you are professional and organized and understand their needs. 

Enhances Team Focus

Writing a scope of work is one of the best ways to ensure your team stays focused. By having this document in place, you can ensure that everyone knows what they’re working towards and that they clearly understand their role. 

Writing a scope of work may seem tedious, but its importance cannot be overstated. When your 

team is aligned, they can be more empowered to take the initiative and think critically when faced with issues. This can increase overall productivity and minimize your need to supervise all the time.

Provides Legal Documentation

One of the best ways to document your scope is by creating a scope of work (SOW) document. A SOW is a written agreement between two parties that outlines the work that will be done, the deliverables, and the timelines. 

Having a clear and detailed SOW ensures that everyone involved in the project is on the same page and that expectations are clear. Plus, in case of disputes, you will have legal documentation to help refresh the initial agreement. It can protect you from scope creep and unwelcome revisions on your project’s completion and success criteria.

Helps To Manage Scope Creep

Scope creep is when unplanned changes are made to the project’s scope during the planning or execution phase. This can result in tasks comprising the team’s initial workload and compromised timelines and budgets.

Many things can cause scope creep – poor communication , project manager ego, project complexity, unclear goals, etc. While writing your scope of work may not address all those issues, it can help mitigate a vast majority.

Writing a scope of work is essential if you want to get the most out of your project. It will help ensure everyone agrees on what's included in the project and that you don't get taken advantage of.

Tips On How To Write A Scope Of Work

Be clear on objectives and constraints.

When it comes to writing a scope of work, clarity is key. Manage the amount of detail you include so that it’s highly informative but not confusingly overwhelming.

Knowing the objectives and constraints of the project is essential to create a thorough and accurate document.

For example, planning an effective campaign may take 2-3 months. But if your client is gunning to launch on a specific month that cuts your original lead time, you may need to hire additional resources or pay for extra work hours for your team. This will significantly increase your budget if you want to fulfill your objectives.

With a clear understanding of the objectives and the constraints you need to work with, it's easier to define the full extent of effort your team has to exert to fulfill your commitments.

Study The Intended Outcome And Strategize

When creating a scope of work for a project, it's crucial to think about the project's objectives and the intended outcome. Knowing what success looks like will help you prioritize which efforts are essential and which are simply nice-to-haves.

Not all constraints can be anticipated. If you encounter one along the way, clarity on your intended outcome and your strategy will help you negotiate and decide how to move forward.

Moreover, a clear vision of the project’s intended outcome will help the team stay focused on the end goal. It will also aid in communication between the team and the client, as everyone will better understand what is expected of them. 

So when writing a scope of work for a project, remember to focus on the intended outcome. Knowing what success looks like will be key to achieving it.

Align With Your Team

When writing the scope of work for a project, it's essential to take the time to align with your team. This step is often overlooked, but it's essential for ensuring a successful outcome. 

By taking the time to discuss every aspect of the project, you can ensure that your estimates are accurate, given your team’s skill level and capacity. This can help you create more reliable timelines. Furthermore, planning can increase your team’s investment in your project, positively impacting their commitment and productivity.

Include Visuals If Needed

Visuals are a great way to illustrate and explain the scope of a project, making it easier for readers to understand and interpret. 

Source: Shifte Learning

Studies have shown that visuals can increase comprehension by up to 400%, so it's worth the effort to include them. Visuals can be used to illustrate a timeline, show the process of a project, or even explain complex concepts. They can also help break up long text sections and make them easier to read. They can also add a touch of creativity and color to a document. 

When choosing visuals, remember that they should be consistent with the project's scope. For example, if you're writing a scope of work for a website redesign, your visuals should focus on the website - not the company's logo or branding. So feel free to use visuals when writing a scope of work.

Common Mistakes To Avoid When Writing A Scope Of Work For Marketing Projects

Not understanding the project.

Writing a scope of work for a project can take time and effort. One of the most common mistakes project managers can make is needing to understand the project before starting to write. Supporting tasks may need to be noticed. Specific dependencies can be accidentally left out. This will inevitably result in additional work unaccounted for when the slightest detail doesn’t go according to plan. (And let’s face it –so many things don’t go according to plan.)

Take the time to research the project, talk to stakeholders, and get clarity on the deliverables. Doing this upfront can save you a lot of time and hassle later. So don't be afraid to ask questions and do your research - it will pay off in the end!

Overpromising

When writing a scope of work document for a project, it can be tempting to overpromise. After all, it's essential to show that your team is up for the challenge and can deliver excellent results. 

But overpromising can be a slippery slope. If you promise too much and can't deliver, it can damage your reputation and create a lot of frustration with your clients. That's why it's essential to be realistic when writing a scope of work document. Make sure the timeline and deliverables are achievable and that you have the resources and manpower to meet the expectations you've set. 

As a rule of thumb, it's better to underpromise and overdeliver — that way, you can exceed expectations and keep your clients happy. 

Regarding project management, it pays to be honest and realistic. So take some extra time to ensure your work scope is accurate and achievable. You'll be glad you did!

Leaving Room For (Mis)Interpretation

When writing a scope of work contract, it is important to be as detailed as possible. The more information you provide, the less room there is for interpretation. This is especially true when it comes to defining objectives and desired outcomes.

It is essential to be as specific as possible regarding the timeline, deliverables, budget, and other expectations. By providing clear and concise instructions, you can avoid any potential misunderstandings.

Additionally, when writing a scope of work, it is essential to remember to include information about resources, communication protocols, and how changes will be managed and reported.

When it comes to the scope of work, the more detail, the better. Leaving room for interpretation can lead to costly mistakes and unnecessary delays.

Not Collaborating With The Project Team

When writing a scope of work contract, it can be tempting to pretend to know everything and give yourself a lot of credit. After all, you want your organization to look good and be seen as the expert. 

However, this is a mistake. It's important to be open about what you don't know and outline areas that you will need to research further or consult with an expert. This will help ensure that you accurately describe the project and set realistic expectations. It will also help to build trust with your clients or colleagues. 

Being honest and transparent with your scope of work will ensure that you don't overpromise and can deliver on what you said you would. So feel free to ask questions and be open about what you don't know when writing a scope of work.

Leaving Out Research And Iteration Time

Working on marketing campaigns, it’s essential to be observant of how your audience reacts to your output. Social listening is also essential to spot trends you can take advantage of. This ever-changing landscape makes research and iteration vital to succeed in your work.

When you don’t include research and iteration time in your project scope, you're not cutting short the time it takes to understand the task, come up with solutions or ideas, and ultimately create effective deliverables. This will often lead to a scope of work that is under-budgeted and unrealistic, leaving both parties feeling frustrated and disappointed. 

So when you're writing your scope of work, ensure you're taking research and iteration time into account. This will help you ensure that the project runs smoothly and all parties are happy with your results. It's a simple step that can make a huge difference!

Ignoring Tools, Templates, And Formats

Your scope of work proposal should be clear and comprehensive so that everyone involved in a project understands the work that needs to be done. Tools, project scope of work templates, and formats can help ensure that everything is present. Using a scope of work services template can also make writing a scope of work much easier and faster. 

Scope statement formats, sample scope of work templates , and free scope of work templates can help ensure your documentation is consistent and organized. Try to look for a scope of work template word document, a scope of work template excel file, or a scope of work example PDF online (or scope of work template PDF file) and you will surely find something you can use as a basis. You can also look for a simple scope of work example to double-check, in case you need additional references

By leveraging the right tools, scope of work samples, templates, and formats, you can write a great scope of work that clearly outlines the project and leaves no room for confusion. 

How Workamajig Can Help You Manage Your Scope of Work

Writing a scope of work is a collaborative effort between the client and the creative agency. It requires researching, strategizing, planning, and aligning, which can result in tedious back-and-forths. 

However, writing your scope of work can help you maximize several benefits, such as a great client relationship, a motivated team, and a protected scope agreement.

To make your writing your scope of work more efficient, take advantage of templates and tools like Workamajig , the only project management software for creative teams.

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How to Write a Scope of Work (with Examples)

In business, a scope of work (SOW) document ensures that projects are completed as they were initially intended. A scope of work helps strengthen collaborativeness by enhancing communication and reducing assumptions that can send a project off course.

An inside look at the meeting ground rules used internally by Fellow.app, the top-rated meeting productivity software company.

In business, a scope of work (SOW) document ensures that projects are completed as they were initially intended. A scope of work helps strengthen collaborativeness by enhancing communication and reducing assumptions that can send a project off course. Seeing that the scope of work is an essential document, every project manager should prioritize its formulation.

A clear and comprehensive SOW indicates the kind of work to be undertaken, the business's approach to completing these objectives, and the expected results. If used appropriately, the SOW document should put you and your team in a position to understand a project's required budget beforehand, which can set you up for success in the long run.

The scope of work document integrates many aspects – from the project schedule to the precise details and expected results. Essentially, an SOW should help you define your intentions and safeguard your activities from scope creep . It should be viewed as a map that reminds you of the direction you should follow over time.

In this guide, we shall explain everything you need to know about a scope of work. Let's jump right into it.

What is a Scope of Work?

What is included in a scope of work, tips for creating more effective sows.

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Let's start with a simple definition of a scope of work.

An SOW can be defined as a document that issues detailed information regarding a project's groundwork. The SOW can also serve as a written contract between you and other stakeholders pertinent to a project, such as service providers, agents, or subcontractors.

This agreement should explain how each task should be completed, the payment details, the deliverables, and the required outcomes. For project managers, the SOW helps communicate project expectations clearly and concisely. You should use the document to explain to stakeholders what they can or cannot do.

As earlier stated, the SOW can help you avoid scope creep.

So, what is scope creep, and how can the scope of work document help you avoid it?

Simply put, scope creep refers to the nature of unauthorized features and functions to expand your project beyond your expectations. Let's say your team is building an android app with specific functionalities for a client. Your main focus can be on user experience, storyboarding, prototyping, wireframing, and development as the project deliverables. With these five deliverables, you have already envisioned your mobile app and how it will hit the market.

In the middle of the project, the client demands more deliverables be added to the project, taking you off course. This scenario is a common occurrence in project management and is an example of scope creep.

Other instances of scope creep can occur due to inaccurate scope definition, ineffective project management, poor communication, and stakeholders presenting unrealistic project outcomes. Although scope creep can massively affect project success, the good news is that this can be avoided by framing a scope of work.

Another important issue to note is that a scope of work differs from a statement of work in project management. The scope of work is essentially a subcategory of the statement of work. While the scope of work indicates the kind of work to be undertaken, the business's approach to completing these objectives, and the expected results, the statement of work serves more as an operating agreement.

The statement of work is usually drafted at the beginning of a project. When a project manager wants to enter agreements with external contractors or agencies, they can use statement of work documents as part of the RFPs (requests for proposal). A statement of work can also help enforce agreements between two internal departments.

In the case of collaboration between a company's departments, the statement of work can be formulated by holding periodic leadership team meetings .

Why Do You Need a Scope of Work?

After explaining what a scope of work document is, the next step entails elucidating why you would need one in the first place. Scope of work documents are valuable aspects of project management, and the following are some benefits of integrating these tools into your projects.

• SOWs enhance communication. Effective communication is valuable to any business. At the end of the day, good communication ensures that projects carry on smoothly and efficiently. When all team members can communicate the intended goals and objectives, they become better placed to comprehend what is expected of them. Before a project manager creates a scope of work document, they get to cooperate with other stakeholders, which enhances communication.
• SOWs protect your budget. In all honesty, no one is happy when a project's budget balloons unexpectedly. The scope of work is a valuable way of ensuring that your project remains within the stipulated budget because the project expectations are communicated clearly and concisely.
• ‍The SOW is the go-to document when there are misunderstandings. It is no secret that complications can affect even the biggest and most important projects. In this regard, an SOW can act as a written record of what was agreed upon. You can always go back to your SOW when miscommunications and mix-ups arise.
• Finally, SOWs can curb time wastage. Every project manager wants to finish their projects on time, and scope of work documents can help you realize this objective. When you know each deliverable, and what is expected of team members, you become better placed to keep them on track. Therefore, an SOW can ensure that each project detail is addressed within the intended time frame.

Let us now look at the people tasked with writing the scope of work.

Who Should Provide the Scope of Work?

In any business, the project manager and the customer should create the scope of work document. Both parties have overlapping interests because one provides a service while the other contracts a product or a service.

Although the scope of work document is a collaborative effort between multiple stakeholders, the project manager and client should always have the final say regarding the activities to be undertaken. Therefore, work should not begin until the two parties come to an agreement.

Scope of work documents are widely used today. Examples of organizations where SOWs are used are software design, construction, and hospitality companies. Therefore, you can expect that you will need to draft an SOW regardless of the industry you operate in.

As long as you have the required resources and positive relationships with stakeholders, you can start writing your scope of work document to ensure that your efforts count for something in the long run.

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Now that you are aware of the scope of work document and why you need it for your project, let's look at what it should look like.

SOWs should be detailed documents for ease of understanding. The people you collaborate with for your project should easily understand the information contained therein to use the scope of work document as a point of reference throughout the project. An SOW should contain 8 sections: the introduction, project overview and objectives, scope of work, task list, project schedule, project deliverables, adoption plan, and the criteria for success.

These sections are discussed below in detail.

Introduction

The first section of the scope of work is the introduction. The introduction should include the project's specifics, such as the type of work to be done and the stakeholders involved. Alternative issues that should be covered in the introduction are whether the SOW will be used to create other agreements later. Examples of these are contracts and standing orders.

Project Overview and Objectives

The second section should cover the motivation behind the said project.

This section lists down all the project's objectives by going into detail. However, the information contained in this section must cover only what is necessary to maintain objectivity.

Scope of Work

The scope of work explains the activities that should be undertaken for the project to be complete. Again, it is important to list the details at the surface level to ensure that attention is not pulled from other sections of the scope of work document. Issues covered in the scope of work should be listed in sections (such as those contained in a simple workflow tool ).

The task list section covers the task management techniques that will be used in your project. Task management is vital because it helps break down the specific steps that will be undertaken by all the team members.

You should understand that tasks should not be viewed as project deliverables. Tasks are specific actions that will guide you towards project completion. Therefore, tasks can be classified into phases. Back to the mobile app development instance used earlier in this guide, there should be specific tasks listed under each of the user experience, storyboarding, prototyping, wireframing, and development project stages. This logic should be applied to any project.

You can learn more about how to prioritize tasks here .

Project Schedule

The project schedule should show the project timeline. However, this step should cover more than the project commencement and completion dates. Project managers should use the project schedule section to outline when each task is undertaken.

The key areas that you can focus on in the project schedule section are the timelines for each task or phase, the location where each task should be performeed, and the required resources that will aid each step's success.

Covering all these areas ensures that each task and phase is completely defined, meaning that there are minimal misunderstandings.

Project Deliverables

The project deliverables are your expectations as a project manager. These deliverables should be the specific conclusions drawn from your project before you begin. For example, you can list deliverables like:

• The development of a new staircase.
• The creation of a mobile e-commerce application.
• Redesigned website user interface.

You can also combine this section with the project schedule section to ensure ease of reference if issues emerge.

Adoption Plan

The seventh step entails the specifics about how each deliverable will be realized. For example, you can explain how a new mobile application will be rolled out in the market or how a new staircase will be unveiled to the general public.

The aim is to create a rough idea of how the project manager will help enhance the adoption of the project outcomes.

Criteria for Success

Finally, the criteria for success section should explain how the project manager will gauge the project's success. As a project manager, you should elucidate how you will measure the project deliverables. Another issue to note here is how the project outcomes will be scrutinized and signed off.

Before deciding on what to list in this section, you should consult the other stakeholders to ensure that expectations are reviewed and agreed upon. The beginning of a project without first aligning each stakeholder's needs with the others' can trigger scope creep. In the long run, the lack of clarity can cause time and cost overruns detrimental to project survival.

Once you have worked on this final step, you can start working on your project.

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Although following all the sections listed above when creating a scope of work document, unexpected challenges can still occur. The following are some tips that you can use to enhance the effectiveness of your SOW.

• Use Visualizations: When working on your SOW, ensure that you prioritize visuals over unnecessary text. Visual examples enable the other stakeholders to understand issues much quicker.
• Explicit Details: Ensure that you go down to specifics. If you fail to cover all the issues, the SOW cannot be used as a point of reference at a later date, endangering project completion.
• Success definitions: another thing is to ensure that you cover all the factors that will ensure project success. You should define these expectations in ways that all stakeholders can understand easily.
• Define the key terminology: Other definitions that should be made are the project jargon. Again, you should not assume that all stakeholders understand what you're trying to communicate. Any business terminology and acronyms should be defined.
• Criteria for reviews: lastly, do not forget that the scope of work document is an actual plan. Therefore, allow periodic reviews of the project specifics to ensure that all ideas are feasible and that the project does not go off course. Reviews are successful when high-functioning teams are involved throughout the project lifecycle.

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10 Free Scope of Work Templates in Word & ClickUp Docs

Praburam Srinivasan

Growth Marketing Manager

February 13, 2024

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Give an inch and they’ll take a mile. Usually, this saying refers to people, but it also accurately describes most work projects. 

Jobs have a nasty habit of spilling and growing into monstrous proportions. That’s why it’s so important that teams outline exactly what a project should be before it gets green-lit.

One way to keep your projects on the rails is to use a scope of work template. These templates help project managers or business owners easily create detailed documents that outline all aspects of a project, from goals and resources to legal requirements and milestones . 

Whether designing a website or proposing a project to upper management, a scope of work template helps you explain your idea and get everyone on the same page about your future project.

However, just because these documents are important doesn’t mean you want them to soak up more time than needed. Fortunately, plenty of free templates are available online to help you quickly and easily create effective scopes of work. 

In this article, we’ll look at 10 free scope of work templates from Microsoft and ClickUp—perfect for anyone looking to keep their projects direct and efficient.

What is a Scope of Work Template?

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A scope of work template is a tool that allows you to plan out the details of an upcoming project. It’ll help you outline important factors like legal requirements, allocated resources , and project deliverables .

The goal of a scope of work document is to create a single place for teams to stay organized and on track during a project. For this reason, teams should make creating a scope of work document a preliminary step in all project planning to avoid wasted time, miscommunication, and tasks outside the project scope . 

Taking the time to create a scope of work document also ensures you don’t get caught up in scope creep . Scope creep is when a project’s scope slowly grows and grows and grows until it becomes far larger than anyone had ever intended. 

By writing down the specifics of what your project is (and isn’t), you mitigate the chances of it taking on a life of its own.  

A good scope of work template should be easy to read and understand. This way, team members and stakeholders can easily read the document and know what the project is, how long it will take, and what is required of them.

Ideally, scope of work templates should also include best practices and advice on filling in each section. Although old hands at writing scopes of work won’t need this advice, it can help people new to this kind of work create an effective scope of work document for the first time. 

It also saves everyone time and mental bandwidth figuring out what to include in each section.

Finally, any template you use should be versatile. Everyone’s needs are different, and you want a template that can easily adjust to your situation. This means making sections general enough that anyone could use them and using a platform that allows for simple changes so the writer can adjust on the fly as needed.

Luckily, plenty of free scope of work templates are available online that meet these criteria! Let’s take a look at 10 of the best ones now.

If there’s something the Internet isn’t short of—it’s content. Look online, and you can find several scope of work templates available for free use.

To save you the time of finding a good free scope of work template on your own, we’ve collected these 10, so you can get to work right away.

If you’re looking for a general scope of work template that can be used for all kinds of projects— ClickUp’s standard Scope of Work Template is it. 

This template is an amazing tool for companies looking to make their project planning process faster and easier, regardless of the kind of work they do. 

Included in this template are several prefilled sections that most projects will want to include in their project scope of work. These sections include project goals, resources, legal requirements, milestones, and more. 

However, just because it has these sections doesn’t mean you can’t make changes if needed. With ClickUp, it’s easy to add or remove sections based on your needs. Plus, you can save your changes, making it no big deal if you plan on regularly cranking out these kinds of scope of work documents. 

Plus, each section has been prefilled with sample writing, so you have an example to work from when editing it. This way, personalizing your scope of work template will be a faster and simpler process, even for people new to these kinds of documents.

So if you’re looking for an all-in-one template to help keep your team more organized, get started at the link below.

One of the biggest pitfalls of working remotely is that it’s harder to collaborate as a team. 

Where you once could get in a conference room and work out the scope of your newest project , now you need to rely on back-and-forth emails and Zoom calls.

ClickUp’s Whiteboard Scope of Work Template aims to change all of that. 

Working from ClickUp’s whiteboard, teams can collaborate in real-time to define the project’s scope and then break it down into manageable chunks that individuals could spearhead. This allows for spontaneous brainstorming and planning between multiple people, so projects get done on time with input from members across your team.  

This whiteboard template has several sections, including a place to define assumptions, justifications, project objectives , and deliverables. 

There’s no need for you to start from scratch. The most important sections are already there—all you and your team have to do is provide your personal insights and sparks of genius. 

The best work is done when a whole team contributes. Make your scope of work a true team effort by trying out our purpose-built whiteboard template .

Web design and development is big business these days. According to one estimate, website building was a $1.9 billion industry in 2020 , and it’s only expected to grow as the decade progresses.

If you’ve been commissioned to build a website, you’ll need a scope of work document to ensure that you and your client are clear on the details of your project. ClickUp’s Website Scope of Work Template makes that process easier.

This website project management template has places for you to define pricing, exclusions, end dates, and much more. It also includes tips on filling in these sections to impress your future clients. 

For example, if you’re unsure how to write a Purpose & Problem Statement , this template will explain what this kind of statement looks like and what you should include making it useful for your client.

You can also easily change this template to make it your own so that clients have a unique document at hand when they finalize the project. 

Bonus: Statement of work templates !

Many companies today use some sort of app to interact with their customers on mobile. However, just because they need an app doesn’t necessarily mean they know what kind of app they want.

If you’re creating an app for a client, you’ll need ClickUp’s App Scope of Work Template to outline exactly what you’ll create so no one is surprised when it gets delivered.

This template makes it easy to explain expected app functionality and give your clients a project overview detailing timeframes and necessary resources. The last thing you want is to spend months developing one thing and then find out that the client had a completely different vision for the final product.

Plus, if you’re an independent app developer, you might not be overly familiar with writing these kinds of documents. Our template makes writing as painless as possible by providing example phrases and tips throughout the document creation process.

So no matter who you are, this template will ensure that there are no miscommunications between you and the client when it comes to your work.

We all know that there’s no such thing as a perfect system—every once in a while, a change is needed. If you’re proposing changes to an ongoing project or process at work, use ClickUp’s Change Proposal Template to ensure you get the point across clearly and quickly.

To help you do this, our template comes with a “Change Case” subpage so you can outline why a change is so desperately needed. Here’s the perfect place to add details supporting your point of view, including the metrics and data that back you up.

This template also comes with a place for you to add a timeline and a list of resources needed to complete the change. Including these things allows your managers to understand the scale of your proposed changes. 

Finally, our template includes a signature page where stakeholders must sign off on the document before implementing anything. This may not seem crucial right away, but having this kind of paper trail is always a good idea if these choices are reexamined in the future.

Getting a project green-lit can be hard work, but you can make the process easier with ClickUp’s Project Proposal Template from ClickUp. This template provides you with a space to plan your proposal on a single interactive digital whiteboard.

On this board, you’ll be able to add information like the project’s goals, budget, timeframe, and team members. As well, since it’s in a whiteboard format, it’s simple for entire teams to collaborate. That means more heads can work together to create a truly business-changing proposal.

If you’ve put the time and effort into building the best team possible, you owe it to yourself and them to create a space where they can do what they do best. An interactive whiteboard is a blank canvas that’ll allow the kinds of free-thinking your team needs to excel and grow.

Kick your project proposals up a notch with one of our project proposal templates . 

Making a sale is never easy. People are naturally hesitant toward business proposals , so you must give them every reason to say yes. 

One way to turn a proposal into ROI for your company is with a professional ClickUp’s Business Proposal Template . This template helps you accurately define exactly what work needs to be completed and how much it will cost. Our template also includes a step-by-step guide that tells you what to do to create the best possible proposal.

This includes premade task lists you can assign to your team, so the proposal is ready for the client kickoff meeting . Finally, give your proposal the best possible chance of getting read with our ready-to-use email template. All you need to do is add details about who you are and why they should take a look at your attached proposal. 

Ready to create professional-looking business proposals with less fuss and fewer headaches? Get started streamlining your proposal process with our Business Proposal template. 

ClickUp’s Scope of Work Services Agreement Template is a great tool for people looking to formalize their working relationship with a client. 

The template includes sections on payment terms, deliverables, and, of course, the services agreement itself. Fill in each section, and you have a rock-solid business agreement between you and your partner. 

No need to write your own—risking mistakes, typos, or omissions that might cause problems for you later on. Plus, once you’ve worked with this template once, it’ll be easy to repurpose it each time you need to onboard a new client .

Since it’s a standard blanket agreement, you’ll only need to make minimal changes to make it applicable to each situation. Don’t waste time rewriting a standard legal document over and over and over again. Use this template instead to focus your efforts where they matter most. 

Microsoft Word has been the go-to program for document creation for decades. So it should be no surprise that they have their own scope of work template you can use for free.

Although this Microsoft Word Scope of Work Template may look a bit dated, it still has a spot for all the most important information you’d want in your scope of work document. This includes sections such as Scope, Project Deliverables , and Affected Parties. 

One of the biggest advantages of this template is that it’s super simple. If you’re already using Microsoft Office , it’ll be like any other Word document you create.

So if you just want a fast and easy solution, this Word template could be the right choice.

Last but not least, we have the Google Sheets Scope of Work Template . The biggest advantage of this template is that it lives in the Google Workspace ecosystem.

If you’re familiar with how Sheets works and don’t see yourself needing this kind of template often, this might be your smartest choice. One thing to note is that this particular template has been formatted as a scope of work example for general contractors or tradespeople.

If you’re working on a construction project , all you’ll need to do is add your specifics. However, if you’re not, you should be prepared to do a fair amount of customizing to adapt it to your purposes. 

Start Your Projects Off Strong

No matter which project you’re working on, having a clear scope of work document can make all the difference. Whether you need one for an app or website development project, change proposal, or services agreement—there is sure to be a template that fits your needs .

Plus, if you choose to use one of our ClickUp templates, you get the advantage of working within the ClickUp platform . This means smart task creation, data sharing, and access to a whole host of free templates aimed at all kinds of business use cases. 

So what are you waiting for? Get started on your projects now with a free ClickUp account and the scope of work template that suits you best!

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How to Define the Scope of Work for Your Projects

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Our Small Business Expert

In the world of project management, you should leave absolutely nothing to chance.

Every promise or obligation that is made must be put in writing because no one wants to be on the receiving end of a raw deal. It doesn’t matter if you’re dealing in construction or marketing project management, it’s always best to avoid the pitfalls of "selective amnesia."

That’s why you need a scope of work proposal for detailing everything you will complete for your stakeholders.

Overview: What is a scope of work in project management?

The scope of work is a document that spells out the agreed-upon terms of work that’ll be performed as part of a project and goes in-depth as to how a project will be accomplished. A fully fleshed-out scope document will include the project milestones, deliverables, objective metrics that’ll be measured, and the parties involved in executing the project.

While the terms scope of work and statement of work (SOW) are used interchangeably quite often, they are not exactly the same thing. A statement of work is a key component for creating a project charter and is an essential component of the project planning process. It is a legally binding document and summation of the terms for which all parties will be held accountable, which the scope of work is a part of.

That’s why I’ve included all of the sections of a statement of work in this piece to give you an idea of where the scope of work fits within the entirety of the document. Consider this a partial refresher on writing a statement of work.

What to keep in mind when writing a scope of work

Your scope of work can make or break your project; it all depends on how you approach the process. These are the two major pitfalls that are destined to flunk your project if you aren’t careful when drafting up your scope of work:

1. Avoid any ambiguities

A scope of work will help you define what success looks like to your project stakeholders and eliminate any presumptions or misinterpretations, but only if you do your due diligence.

What do I mean by that? Well, one of the most common causes for project failure is miscommunication, and this extends even to your scope of work. If your scope of work is not clear, concise, detailed, and specific, then you’re leaving the door open for unmet expectations either for you or your stakeholders.

2. Get your stakeholders involved

I am a big believer in the iterative processes of the agile methodology since they create a sense of involvement between the project stakeholders and your executing team. That’s why I recommend that you make your stakeholders a part of the drafting process.

This is the best way to avoid any confusion or ambiguity that would damage your relationship with them further down the road. This doesn’t mean they ought to draft the document.

Instead, make sure you bring any uncertainties or major developments to your stakeholders for clarification. Whether their initial requests and deliverables are not as attainable as once thought or you just have a question about a particular detail, make sure you don’t keep these concerns to yourself.

Where your scope of work fits in the statement of work

As I mentioned before, since the scope of work is just a component of the statement of work, I figured this was the perfect opportunity to run through a refresher of the entire document.

If you want to jump ahead to my scope of work example, look to section 3.

Section 1: Introduction

Your introduction is your opportunity to provide an abstract overview of the issue(s) you and your team plan to address. You’ll identify the purpose of this project and why this project is important for the stakeholders.

Save most of your minute details for the following sections. All you want to do is give some context as to why your services are necessary and a brief explanation as to why you’re suited to take on this challenge.

Tip: This section shouldn’t be any longer than three paragraphs as this is essentially only your thesis statement for the entire statement of work.

Section 2: Project goals

You’ve introduced the problem to be solved and now it’s time to give an overall explanation of what your goals are for this project. This is a short section and only requires you to answer this particular question:

What is the goal of your project?

Tip: This isn’t the place to get caught up in details, as mentioned in the last section. This is only meant for you to explain the high-minded endgame for your project.

Section 3: Project objectives and deliverables (scope of work)

Here’s where we get into the true scope of work since most of the information so far is actually part of your statement of work. It’s time to take a deep dive into the tasks and deliverables that they will produce. It’s best for you to run down your list of tasks for the project and pair them with detailed deliverable descriptions.

Not every single task will produce a specific deliverable, so if you have to bundle several tasks together, feel free to do so in order to avoid repeating yourself, like so:

• Task 3 = Deliverable (plus a detailed description)
• Task 6 = Deliverable (plus a detailed description)

While you’ll address dates in greater detail in the next section, make sure you list all of this information in the order you plan to tackle the deliverables so that you can avoid any confusion.

Include detailed explanations of how these tasks are to be completed, what they will require to complete, and how all of this will impact the outcome of the deliverables. Finish off this section with a description of how all of these deliverables will come together to complete the project.

While you don’t have to adhere exactly to this scope of work template, it’s best that you include all of this information in some form or another, whether it’s a bulleted list, a chart, or any other organizational form.

Tip: Here’s where you don’t want to skimp out on detail. You want to be as clear as possible to avoid any future conflicts borne out of ambiguity. Every task and deliverable must be specific and quantifiable.

Section 4: Project layout and timeline

When should your stakeholders expect all of this to take place? Use this section to layout your project schedule, including:

• Task completion dates
• Stakeholder review dates
• Deliverable completion dates
• Testing spans
• Project closeout

Just like your objectives and deliverables section, you want to be specific on all of these fronts. These dates will ensure transparency and clarity, but also give you a baseline to work from in case things have to change in the future.

Tip: This goes hand-in-hand with the scope of a project since it gives further context to the work you hope to accomplish, so remember not to underestimate your due dates for your project. Any increases to your project scope can lead to runaway scope creep. Everything you do is a balance of the project management triangle of scope, time, and cost.

Section 5: Terms and conditions

This is the fun part for the performing party where you lay out your terms and conditions for completing this project. You’ll include everything that is contingent upon the delivery of the project and any additional support items you’ll require from the stakeholders, including:

• Payment terms
• Security clearances
• Travel requirements
• Testing support
• Hardware or software systems access

Additionally, you’ll include all of the standards for accepting deliverables, what success looks like to the stakeholders, who will review and approve the status of the deliverables, and any other criteria that determine the quality of the project.

Tip: If your team is working with outside contractors to perform work on the project, make sure you clear with them how they prefer to be paid and if it is a rate the client is likely to accept.

Section 6: Completion criteria and signature area

Once the stakeholders have read through all of the project details in your statement of work, they’ll come to this final section, which includes binding language that holds you and your stakeholders accountable to all terms laid out in the document. Finally, create a space for all of the responsible parties to sign the document.

Cover all of your bases

Just as you’d never want to leave any stone unturned when preparing your scope of work proposal, the same can be said for your knowledge of project management.

That’s why we at The Ascent have put together troves of project management software reviews , how-to guides, software alternatives pieces, and beginner’s pieces to get you up to speed on everything you need to know. Be sure to brush up on some of my favorites:

• How to Utilize Lean Project Management Within Your Small Business
• Everything You Need to Know about Gantt Charts
• 6 Crucial Project Management Metrics You Need to Succeed

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

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• TemplateLab
• Project management

Scope of Work Templates

40 ready-to-use scope of work templates & examples.

Writing a scope of work (SOW) project is an important part of doing business for many contractors, especially those that handle large-scale projects for other businesses. Your statement of work not only spells out specific phases and details for a project, it also helps tell the story of the work you plan to do. The scope of work your business plans to do will be spelled out in this document.

Table of Contents

• 1 Scope of Work Templates
• 2.1 What Industries Use a Scope of Work? 
• 3.1 What’s Contained in a Scope Of Work? 
• 3.2 Before Writing Your Scope Of Work
• 4.1 Create an Impressive Scope of Work Agreement Using SMART Goals 
• 5 Scope of Work Samples
• 6 Tips for Writing Your Scope of Work Document

Scope of Work Definition

Sometimes, it’s important to define a document. The Scope of Work document is sometimes called “statement of work” as well. For this page, we will refer to the document as “scope of work” but please remember that you can use either of these interchangeably. The SOW document serves as a contract or agreement contains information on how the work performed will be accomplishment. Inside the SOW, your content should explain any milestones, reports, deliverables, or other end products and results that your company will be completing.  You should also include a timeline for each deliverable .

This page contains a Scope of Work template that you can download and customize.

Why is a Scope of Work Document Important?

A scope of work document is an important thing to use if you’re a business that contracts with other businesses . If you sign contracts on a regular basis, the Scope of Work agreement helps you clearly define the terms of the project, no matter what industry you are in. It serves as a formal document that describes the work to be done, the process of the activities, a timeline of deliverables, and payment terms.

What Industries Use a Scope of Work?  

Many industries use a Scope of Work document to spell out the details of a project. Here’s a list of businesses that may use a SOW to do business:

• Software companies
• Web design companies
• Construction companies
• Decorating companies
• Wedding contractors
• Marketing agencies
• Independent contractors
• Event planners
• Appliance Repair companies
• Subcontractors

In the digital world, most companies that do business with other businesses assign each project a project manager. Project managers should become familiar with Scope of Work templates, which will help everyone involved in the project stay on track.

How to Write A Scope of Work Document

Many contractors make the mistake of using cut and paste to fill out their scope of work, simply filling in the blanks on a template. This is a huge “don’t” that you should avoid. Use your SOW template to impress your clients, and make it thorough. A good Scope of Work document will reinforce to your clients that your company is the best one available for the job. It will explain specifics, such as the work to be performed, key assumptions, and price.

It also serves as a legal document once the terms have been agreed upon.

A scope of work document is not a proposal and should never be treated as such.  It’s actually a document that’s drawn up, often immediately before you commence working. It’s usually typed up and sent to a company once the sale has been made, and includes a quote for the work that will be done, as well as a timeline for the project.

Often it is sent as a follow-up once a client has made an oral agreement to work with you.

What’s Contained in a Scope Of Work?  

All Scope of Work documents should contain a timeline, schedule, key information about the project and, of course, and the final price. They will also often include variations of the following:

• Objectives: All objectives should be reasonable and measurable in terms of outcome. The objectives of the project should be discussed will in advance of this document, but the paperwork should again re-iterate your final goal. If you’re building a deck, you’ll spell out the dimensions and other important details about the final product. The objectives should answer the question “Why?” for you and your client, as well. If you’re creating a SOW for a marketing client, for example, the objective may be “to increase sales by 25% through the use of coupon promotions on Facebook and Twitter.” Whatever your objective is, it needs to be something that is realistic to achieve. Many people include tasks within the list of deliverables. This is incorrect. Deliverables are just that…they are items that you hand off to the client for their review and approval.
• Statement or Scope of Work: This statement defines the work that will be done and the steps to completing it, as well as the deliverables, i.e. the work that will be completed and handed to the client. For example, when you’re renovating a bathroom, you don’t renovate it all at once. Instead, you will tackle each step in the most logical order, probably starting with replacing the bathtub, shower and toilet and finishing up with new tiling and grout. Each of these items will also include their own steps. Sometimes businesses include tasks within the list of deliverables. This is not the correct way to go about writing a Scope of Work. Deliverables are the final product that you will then hand off to the client. They are tangible items that are easily accepted or rejected. It is also important to state exactly what deliverables are being created and include the details that accurately describe each deliverable. If these are goods such as products, include the size, weight, quantity and description. Do not make the mistake of giving the client options or alternatives in the scope – by the time you’re writing this document out, all of the decisions should have been made by now. The SOW should be written as a definitive statement that’s meant to “seal the deal”.
• Schedule: This is where you will set milestones. Dates for each project to be completed, with specifics on who will do what. If your business will involve multiple departments, you will need to coordinate to make sure the schedule is workable.
• Price: This will include the cost of labor, goods, and any subcontractors. If there are payment milestones required, or a deposit down, this information should be included in the SOR price section, not the schedule. The schedule applies only to deliverables. The pricing section should let your client know if they are paying a fixed fee or time and materials payment terms including a payment schedule, and the payment terms . Make sure that you specify if payments are based on a milestone or a schedule.
• Acceptance: This is the part of the scope of work that transforms your document into an enforceable contract. This section will include your client’s signature and the business representative’s signature. Never start a project without getting this signature. It’s more than just a formality; it will help you in the event of a dispute and serves as a legally binding contract for the courts.

Before Writing Your Scope Of Work

A well-written scope of work enables your business to get the most out of their contracts, helps build customer goodwill and earns you respect as the consummate professional. Using a Scope of Work for every project can help you establish credibility, and your clients will come to trust that your work is always transparent and fairly priced.

Before you sit down to write your Scope of Work, you’ll want to use these guidelines:

• Use a template for your Scope of Work. You’ll want to adapt this template a bit to reflect the style of language your company uses.
• Spend time looking at a Scope of Work example. There are many of them all over the web, but you’ll want to find one that’s specific to your industry.
• Take the time to understand your customer’s requirements, as well as their expectations as far as project goals, deadlines, and deliverables. If you are preparing a Scope of Work for a government agency, you may need to use the information from their RFP to write a clear document.
• Share the information with all of your team members that will be involved in the project. Make sure to pay attention to their concerns and seek their input on any milestones or deadlines.
• Describe the work in clear details, and don’t leave anything out. You need to be thorough, and give complete outline of the project , as well as how the project will be deployed and managed. Include information on policies and procedures that may affect the project.
• If your client is not familiar with Scope of Work documents, you may want to show them a Scope of Work example from past projects. This will help them understand why their specifications are so important, and let them know you have the capacity to handle complex projects with professionalism.
• Make sure to mention any technical support, warranty terms, maintenance agreements and other important terms and conditions. Make sure that if you offer a warranty, you are specific when describing what can void the warranty.

Scope of Work Examples

Create an Impressive Scope of Work Agreement Using SMART Goals  

In the world of business, you may hear a lot about “smart” goals, but not be sure exactly what that means, outside of “intelligent.” SMART is actually an acronym that’s used frequently in marketing.  SMART goal setting can help you create a realistic project and focus on the points. Here’s what to keep in mind as you develop these goals. (It spells out SMART when you put it all together!):

• What, specifically, are you going to do for this project? Make sure you include price, colors, sizes and optional add-ons. Your goals should include the entire final product, also known as deliverables. These should be tangibles such as a complete software system, a fence, etc.
• How will you know when the product is done? What is the total quantity of deliverables? When will you consider the project complete?
• This should go without saying, but don’t make any promises that you cannot keep. Be realistic about deadlines and project milestones. Make sure you can achieve what you set out to do, on time every time.
• Don’t add bells and whistles into this agreement, and don’t mention work that will need to be contracted out. Let the customer know what they’ll be getting, but it’s not really necessary to tell them every aspect of who does the work.
• Time-Based. Set deadlines, milestones, and other key dates officially. Once the Scope of Work document has been signed, it serves as a contract. Make sure these deadlines are easy for you to reach.

Scope of Work Samples

Tips for Writing Your Scope of Work Document

The scope of work should contain all the information on the project you’re doing and not reference any external documents or oral agreements. All agreements that your client should concede to should be spelled out clearly in the document. Always include the schedule and the payment terms in your scope of work document. The SOW is a legal document, and referencing outside documents could lead to trouble. Instead, take your time to write out all the considerations thoroughly. If your client objects to any of them, then you will at least be able to revise the document so they are willing to sign it.

Sometimes it helps to look over Scope of Work examples to get a feel for how other businesses have used the document. We provide you with a template as well as a Scope of Work example on this page. Take your time to look around online as well for samples that reflect the type of work you do in your industry. It will help you stay competitive and also learn about any special stipulations your competition may put in place.

Your scope of work document should explain all the work involved and the deliverables clearly. It should be a professional, easy-to-read document. Take your time checking it for errors. Don’t rely on spelling or grammar check to find problems; those programs tend to miss a lot of mistakes.  Reading the scope of work document out loud will help you discover spelling errors or poor grammar. Take time to also make sure that the numbers in the document are accurate and that the writing is specific and clear.

More Templates

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Statement of Work Templates

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• Scope of work vs. statement of work: Wh ...

Scope of work vs. statement of work: What’s the difference?

While both scope of work and statement of work are often abbreviated as SoW, they’re not the same thing. A scope of work is a subset of the statement of work document that describes how the project goals will be achieved. Keep reading to learn more about the differences between these two documents and what you should include in each.

But what exactly is the difference between a scope of work and a statement of work and what goes into these documents? In this article, we’ll explain how to tell these two documents apart and why they’re valuable project management tools. 

Note this is not intended to be legal advice, and you should consult with your own internal legal team to determine the approach that works best for your situation.

Scope of work vs. statement of work

While both scope of work and statement of work are often abbreviated as SoW, they’re not the same thing. 

A scope of work is a tool to define and share important business considerations and project goals. Depending on your project’s needs, you may just need a standalone scope of work. If your team is working with an external client or agency, you may then decide to create a statement of work. This external-facing document is a comprehensive outline of the project’s deliverables, requirements, goals, schedule, and costs,  and provides your project team and stakeholders with a detailed narrative of what needs to be done to successfully complete the project. 

Let’s take a more in-depth look at both documents, starting with the scope of work.

What is a scope of work?

A scope of work is a guide to help your team understand what a project does and doesn’t cover. The scope of work typically discusses project needs and explains how a project’s goals will be met. This document will usually outline the work you’re going to perform during the project and includes details on the deliverables, timeline, milestones, and reports. 

A scope of work can stand alone if your project doesn’t require a statement of work. Work with your internal legal team to decide if you need to expand your scope of work into a statement of work.

When can a scope of work be helpful?

A scope of work is the foundation of a well-planned project and can help it run smoothly. This document can help your team and project stakeholders agree on project requirements and identify potential risks that could prevent a successful and timely completion. 

For example, while drafting the scope of work, your team may notice that the scheduled delivery of a task conflicts with an ongoing separate task. You can then make changes to the timeline and adjust the scope of work accordingly.

A scope of work can help align your team on project deliverables to help hit deadlines, avoid backlogs, or added expenses.

What is a statement of work (SoW)?

A statement of work document is a working agreement between two parties that’s helpful for aligning on project objectives. A SoW builds on your scope of work. This document is typically drafted at the start of a project and can define everything from the project objectives to detailed tasks, project cost and schedule, and more. 

They’re most often used for external projects and act as a contract between your organization and the client, buyer, agency, or contractor you hired. For example, you may need to draw up a statement of work when collaborating with an external design agency for a project or when working with a contractor on a large-scale building project. 

Some of the most complex statements of work documents are written for government contracts and are typically part of the RFP (request for proposal) or RFQ (request for quotation) .

You can also use a statement of work for internal projects when two different departments collaborate. 

The following parties generally receive a SoW:

Project manager or lead

Contractors and collaborators

Everyone involved in the contract

Check with your internal legal team to decide if or when a project can benefit from a statement of work.

When can a statement of work be helpful?

A well-written SoW combined with an effective project management tool can set you up for a successful project. This document helps your team and the party you hired manage and document expectations. It’s a narrative description of the project that can help avoid disputes and misunderstandings.

At the end of the project, the results will be reflected back on this document to verify that the final performance has met the SoW. Depending on your contract and your legal team’s advice, this can have additional impact, like whether your organization will be paid in full, receive bonuses, or suffer penalties.

How to write a scope of work

A good scope of work helps you identify important business considerations and share your project objectives and details with project stakeholders.

Many people keep the following in mind when approaching a scope of work:

Be specific. Use precise and clear language so everyone is on the same page about the project requirements and expected outcomes. Listing measurable deliverables, milestones, and tasks may help you avoid confusion later on.

Use visuals. Visuals like a work breakdown structure make information easier and quicker to digest for everyone involved. They also allow you and your team to detect risks like bottlenecks that can put the successful and timely completion of your project on the line.

Collaborate with stakeholders. We’ve already mentioned that you should seek advice from your legal team during this process. For this specific task, collaborating with stakeholders can save you time in the long run. This way, you can nip future misunderstandings in the bud by getting everyone involved from the start.

No two scope management plans look the same. What you should include and how in-depth this section should be will look very different for every industry and project. When in doubt, check with your internal legal team for guidance.

The following sections generally make up a scope of work:

Deliverables

This section in the scope of work covers the product or service the project is going to deliver. This is where a work breakdown structure will come in handy.

Include a timeline or Gantt chart that precisely describes the major phases of your project. This section serves as the visual project roadmap leading your team and everyone involved in the project from start to finish. 

Similar to a scope of work, milestones help you break up your project in more digestible chunks. Write down all the milestones for your project to make monitoring progress and sticking to your timeline an easier task.

A scope of work typically also includes any reports that you’ll be generating throughout the project. Whether it’s a status report to the client, a progress report you’re inquiring about from the vendor, or a financial report to analyze the difference between budgets and performance, include details about all of these documents, who will create them, and when they’re scheduled to be delivered.

These reports will be a means of communication throughout the project and provide all parties involved with the data and information they need to stay updated on the performance of the project.

Some scope of work documents may include a glossary of terms, an overview of acronyms and abbreviations, or other sections further describing details associated with the successful completion of the project.

How to write a statement of work

You can leverage your scope of work into a statement of work for better accountability with external partners. A thorough, detailed, and accurate statement of work can align teams on all project details. 

If a statement of work is unclear, it can lead to confusion between the two involved parties. That’s why it’s key to have all the tasks and details clearly outlined. 

Below are some strategies to consider when preparing a statement of work:

Break the project up into phases. One long list of tasks can easily look overwhelming. By breaking the project up into individual phases, you can take some of the pressure off your team and the stakeholders.

Write in short and clear sentences. Writing in short and clear sentences will minimize room for misinterpretation. If you’re planning to use acronyms or abbreviations, include a glossary so everyone understands what they stand for.

Explain the purpose of the project. The project objectives and project purpose help stakeholders understand why this project matters.

Define the goal of the project and how to reach it. A clearly defined goal will help you stay on track. This will also help you avoid potential misinterpretations of the final goal and the steps towards achieving it.

Define project milestones and success together. Including the stakeholders and your team in the writing process can create a foundation for a smooth and successful collaboration.

Set clear, simple, and measurable boundaries. Clearly defining boundaries, like the project scope, goals, and key phases, can help you avoid disputes down the line. Include quantifiable boundaries so there is no room for misinterpretation.

Always run your SoW by your legal team. This ensures that everything mentioned above was executed well and thoroughly. A third party, like your internal legal team, can uncover potentially risky sections and help you and your team revise accordingly.

Educate your team and check in regularly. Once the statement of work is finished and signed off, make sure your team and all stakeholders are educated on the details and stay up to date throughout the process. This allows you to monitor whether or not everyone is adhering to the agreed-upon details.

Your statement of work can cover the legal side of things but a project management tool will allow you to keep track of processes and performances throughout the project. Once the statement of work is completed, transfer all important information, tasks, and deadlines into your project plan to connect and collaborate with your team and stakeholders in real time.

What makes up a SoW?

A statement of work generally consists of 13 sections. Each section covers a specific aspect of the project and addresses the stakeholders involved. Depending on your industry and the scope of your project, the statement of work can have more or fewer sections. 

Consult with your internal legal team when drafting a statement of work to align with the standards and special requirements of your industry, organization, client, contractor, or other stakeholders.

For example, a statement of work might include the following sections:

1. Introduction  

At the beginning of a statement of work, there’s generally a brief introduction so anyone reading the document knows what the project is about and who’s involved. 

2. Project purpose

The second section defines the reason for the project. This section is typically an outline of the project objectives and the purpose of the project to give the reader a better understanding of why this project matters. 

3. Scope of work  

The scope of work is likely going to be the most detailed section in the statement of work. This section covers how you plan to accomplish the project goals. 

4. Location of work  

In the fourth section, you will typically define the location of the project. For example, will the project be set in a remote environment or do you need to meet on site so your team members can complete the project? 

5. Detailed tasks  

Then, the SoW will break the project scope down into smaller tasks that need to be completed. This section includes information to help all involved parties understand the specific steps they need to take to successfully complete the project. Depending on the scope of work, this section may include a work breakdown structure (WBS) to visualize the individual tasks and make this section easier to digest for the reader.

6. Milestones  

In addition to including task details, the statement of work may include a section to define any measurable project milestones. This section can help further break down the project into more manageable chunks and also give all parties involved the chance to reach their goals on time.

7. Deliverables  

This section lists all expected deliverables, including their due dates. Typically, this section will include specific, quantifiable deliverables that don’t leave any room for misinterpretation.

8. Schedule  

Here, the schedule may include the due dates of the deliverables, the amount of time that will be spent on each task, and any billable hours. This section typically also includes relevant timelines, including the start and end date for every task.

9. Standards and testing  

Any industry-specific standards that apply to the project will be explained and listed here. The SoW will refer to all testing stages that are required to complete the project successfully. Each testing stage should include information about who is involved in the project, the required resources and equipment, and at what stage the testing will take place.

10. Success definition  

This section includes information that clearly defines what the stakeholders deem a successful project. Typically, project stakeholders are involved with crafting this section in order to ensure that all parties agree on what the goal is for the project. 

11. Requirements  

At this point, the statement of work may list any special or specific project and work requirements. This can include equipment that’s needed for the projects, certifications that your team has to acquire, or security clearances that contractors have to pass. 

12. Payments 

This section can include any costs associated with the project. Anything from outside expenses that accrue throughout the project stages to the cost of labor are typically listed here. 

The payment schedule and how the payments will be made can also be explained in this section. You can state whether you’re planning to pay up front, after each milestone, or after the successful delivery. Generally speaking, payment terms are either set up by schedule or by milestone of deliverable. Coordinate with your legal and finance teams to decide what’s best for your specific situation.

13. Other  

Anything relevant to the project that hasn’t been listed yet should be included in this section. This will vary based on industry, but it can include travel pay or requirements, security concerns, software or hardware restrictions, and post-project support and testing.

Check with your internal legal team so they can help you cover everything that’s relevant to the project in this section.

Use a scope of work to avoid scope creep

Whether you’re using a statement of work or a scope of work to define your project goals, these documents will be crucial in keeping your team and any stakeholders involved accountable for their work and performance. 

Adhere to your scope of work document as best as you can to avoid scope creep . This will ensure that your project is delivered on time and meets your expectations. 

Aligning your scope of work with project management software will keep your team on track and help you reach your goals. 

This article contains suggestions and considerations to help your team learn more about SoWs and scopes of work. This is not intended to be legal advice. Consult your internal legal team to determine the approach that works best for your situation.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

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Services and Scope of Work for Business Plan

A business plan contains a standard scope of work unless a client has provided a different scope of work. I work with my clients based on their specific needs and develop customized business plans that fit multiple audiences and various funding purposes. Standard scope of work includes:

• Executive Summary
• Business Overview
• Key Success Factors
• Commercial Viability of Business
• Job descriptions of owners and staff involved
• Organization chart explaining the above
• Market Research and Analysis
• Competitor Analysis
• Sales, Marketing and Promotions Strategy
• Competitive Edge
• Potential Customer Analysis
• SWOT Analysis
• Specific information of products/ services and pricing
• Distribution Strategy (if any), depending on the business model
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Estate Planning Guide and Checklist for 2024

Key takeaways.

• Common estate planning documents are wills, trusts, powers of attorney, and living wills.
• Everyone can benefit from having a will, no matter how small their estate or simple their wishes.
• Online estate planning services offer basic packages for less than $200.
• Estate planning attorneys can cost several hundred dollars per hour.
• Estate plans must be updated after significant life events.

Why you can trust us

Our Reviews Team consists of trained lawyers who have spent hundreds of hours researching estate planning and using the services we recommend. We only recommend services we find to be helpful and accurate. To develop our reviews and guidance, we:

• Spent 300 hours researching and using online estate planning services
• Consulted with legal experts, probate attorneys, and financial planners to learn the best practices in estate planning
• Went behind the paywall to gain firsthand experience with five of the top online will creation services to review and compare them with each other
• Read hundreds of customer reviews on trusted third-party websites, such as Better Business Bureau (BBB) and Trustpilot

What is estate planning?

Organizing your affairs in preparation for the end of your life is an important task, and estate planning is an ongoing process that includes much more than writing a will. This type of planning helps determine who can make decisions on your behalf, who takes care of your dependents, and how to avoid unnecessary taxes and waiting periods.

Estate planning covers any decisions regarding money, property, medical care, dependent care, and other matters that can arise when a person dies.

The biggest benefit of estate planning is peace of mind—you’ll know your wishes will be fulfilled for the benefit of your loved ones. At the very least, everyone should have a simple estate plan in place.

Elements of estate planning

Most of this process consists of creating and finalizing estate planning documents, such as wills, trusts, powers of attorney, and living wills. You can be as detailed as you want. Some people even include a letter of instruction with their estate to walk their family members through the documents.

A will, formally called a “ last will and testament ,” is a legal document stating how you want your executor (the person legally obligated to administer your estate) to distribute your assets when you die.

Dying without a will is known as dying “intestate,” which means state law will dictate what happens with your estate.

Probate refers to the process of distributing your estate after you’ve died. Your estate will go through the probate process whether you die with or without a will, but having a will ensures your executor honors your wishes. Going through probate court without a will is more time consuming and expensive, with the money coming out of your estate first.

If you already know where you want your assets to go, it’s easy to make a will without a lawyer . Online will services offer interactive questionnaires to help you create a legally binding will specific to your state.

A trust is a legal contract that allows another person (the “trustee”) to hold property for you (the “grantor”). This is typically so the beneficiaries (individuals or institutions who stand to inherit something) can use the property at some point in the future. You can place money, physical assets, or anything else of value in a trust.

Trusts are also helpful to hold property when beneficiaries are minor children who are not yet fit to handle their full inheritance. In that situation, the property will stay in the trust until the beneficiaries reach a certain age.

Property is also distributed faster in a trust because you avoid a lengthy probate court process, so it’s sometimes preferred for that reason.

Living trust vs. testamentary trust

You can create a living trust , also called an inter vivos trust, to hold property both before and after your death.

A testamentary trust is a type of trust that a will creates, so it only becomes effective after the grantor’s death.

The difference between these two kinds of trusts is that a living trust is effective while the grantor is alive, and a testamentary trust only becomes effective after the grantor’s death.

Revocable vs. irrevocable living trusts

A revocable living trust is one where the grantor retains the right to modify, amend, revoke, or terminate the trust. In an irrevocable living trust, the grantor is not allowed to make changes to the trust, but some states may allow the trustee to transfer property in and out of an irrevocable trust with permission from the trust’s beneficiaries.

A revocable trust becomes irrevocable when the grantor dies, since they can no longer make changes to it. Some people choose to place their assets in a revocable trust rather than only using a will. Upon the grantor’s death, the executor distributes assets in a trust faster because they don’t have to go through probate.

Helpful hint: Trusts are not just for wealthy people. Anyone who wants their property to go to their relatives in a quick and easy manner can create a trust. For example, parents of young children may put property in a trust specifically designated to fund a child’s education.

Power of attorney

Power of attorney (POA) refers to the authority you give someone else to make legal, financial, or medical decisions on your behalf. These documents are commonly included in online estate planning service packages.

The person to whom you grant power of attorney is called your “agent.” You identify this person in a document that only takes effect when you are considered unable to act on your own behalf, or you can grant someone POA for a specific purpose, such as purchasing a vehicle for you.

If you become unable to manage your own legal or financial affairs and you have not designated an agent to act on your behalf, a court may appoint one for you. Each state has its own laws on POAs, but the general types to be aware of include (but are not limited to) durable, limited, and financial.

A durable power of attorney means your agent can continue to act on your behalf even when your situation changes, such as if you become ill and are unable to make decisions. It can grant broad authority or be restricted to a specific purpose.

Helpful hint: Some states allow “springing” durable POAs, which means the POA only takes effect when you are deemed incapacitated. This is useful if you don’t want to give someone else decision-making authority right away, but want protection if you ever need someone to advocate on your behalf.

A limited power of attorney gives the agent authority to make decisions for a specific purpose, or for a limited period of time. In contrast, a general POA gives the agent broad authority to act.

A financial power of attorney gives the agent authority to manage your financial affairs. You can make this effective immediately or at the time of an event, like a sudden incapacitating illness or death.

Health care decisions

Health care is one of the most common aspects of estate planning. You want someone you trust to help ensure your wishes are respected if you become unable to advocate for yourself. Living wills, health care proxies, and advance health care directives are tools you can use to protect yourself in the future.

Living wills

A living will states your preferences regarding health care planning, such as whether you want life-extending treatment, how you want to manage long-term care, what procedures you do or do not want, and other end-of-life matters.

Health care proxies

A health care proxy is a durable POA specifically for medical treatment—you appoint someone to make decisions on your behalf when you are deemed unable to do so by a medical professional.

Advance health care directives

Advance directives is an umbrella term that can refer to any document regarding future medical decision-making. It can refer to a living will, health care proxy, or other legal document.

One document to include with your advance directive is a HIPAA authorization. HIPAA stands for Health Insurance Portability and Accountability Act (1996). 1 This federal law protects your medical records by requiring a signed authorization form before you grant access to someone other than yourself. Having a signed authorization for your agent ensures they can access your medical records when the directive takes effect.

Tax planning documents

Taxes can take an alarming percentage of what you leave to your beneficiaries, but you can limit what taxes your estate pays in a few ways. Each state has its own tax laws, so your obligation will depend on where you live. While financial and tax planners are best equipped to advise you on these matters, you should consider a few types of taxes when organizing your affairs: estate, inheritance, and gift taxes.

According to the IRS, an estate tax applies to estates valued more than a certain threshold at the time of death. 2 You calculate the tax by:

• Adding the fair market value of everything a person owns
• Taking out deductions
• Adding the value of gifts made during the person’s lifetime
• Taking out any credits

If the estate value is above $13.61 million (as of 2024), the estate pays a tax to the federal government.

Inheritance tax

Only six states impose inheritance taxes:

• Pennsylvania

While estate taxes are owed to the federal government, inheritance taxes are owed to the state government. Additionally, while estate taxes are paid directly from the estate itself, inheritance taxes are paid by the heir or beneficiaries based on what they received in probate.

These taxes do not apply to surviving spouses or to payouts from life insurance policies. Instead, inheritance taxes usually only apply to more distant relatives and heirs. It’s unlikely this tax affects you, but it’s good to be aware of it if you live in one of the six states that apply it.

Many people choose to make gifts during their lifetime to reduce the value of their estate when they die. According to the IRS, gifting can take different forms : selling something for less than its full value, transferring the right to use income from property, or transferring money or property without expecting to receive the full value in return. 3 Usually, the person giving the gift owes the tax, but other arrangements are possible with the advice of a tax professional.

Estate planning checklist 2024

The best way to approach estate planning for the first time is to make a checklist for yourself. Everyone has unique needs, and an estate planning attorney may be helpful if your needs are complex. Before making the choice whether to hire an attorney or do it yourself, these are general steps you can take to get started.

☐ Take an inventory

Write down everything you own of value that you can think of. This may seem overwhelming, but keeping a running list of assets is worth the time to make sure nothing important is left out. Make sure to consider both tangible and intangible assets. Tangible assets are:

• Other physical items of value

Intangible assets are:

• Bank accounts
• Retirement accounts, like 401(k)s or IRAs
• Life insurance plans
• Financial elements, like bonds or annuities
• Other nonphysical items

Listing liabilities, like mortgages, lines of credit, and other debt, is a good idea as well. That’s because certain debts must be paid—even after death. In that case, it will come out of your estate.

☐ List your family members

The purpose of listing your family members is to account for the needs of immediate family and dependents. Your will and life insurance policies are the primary ways to plan for the needs of your surviving spouse and make guardianship designations for children and other dependents. Many people also make arrangements for pets.

☐ Choose which directives you want in place

The more you plan ahead, the fewer decisions you’ll have to make during an already stressful time. The tools discussed in this article (such as living wills, powers of attorney, and trusts) make navigating illness and other end-of-life matters easier because you’ll have a plan for most scenarios. Decide which tools you want in place and how to set them up.

Once you know which directives you want to include in your life plan, talk to anyone you are considering naming as an agent. You’ll want to be sure they are willing to act if needed. You should also consider naming secondary agents if the first person is unavailable when the directive takes effect.

☐ Designate your beneficiaries

A beneficiary is a person or institution inheriting a piece of your estate, such as money, physical property, or control of or interest in a business.

You should name your beneficiaries on your bank accounts, retirement accounts, and life insurance policies. If you name beneficiaries to those accounts in your will, make sure the names match to avoid any confusion.

Choose backup beneficiaries for your assets if a person is unavailable or dies before your estate distribution. You can also name a beneficiary in a “residuary” clause in your will. This person will inherit anything left over after your estate distribution.

Helpful hint: This is a good time to check the named beneficiaries on all of your accounts to make sure they are updated. For example, if you are married for the second time, and your first spouse is still named as a beneficiary of a bank account, you can change it to your current spouse to avoid conflict in the future.

☐ Look up your state’s laws

States have different laws regarding what happens when a person dies. To ensure you have optimal asset protection, check your state’s probate and estate or inheritance tax laws . If you believe an estate or inheritance tax may apply in your state, contact a professional to help you reduce your tax burden as much as possible.

☐ Choose a law firm or online service

Now that you have a clear picture of your estate and who should receive it, you can decide whether an online estate planning service is right for you.

If you aren’t leaving behind any dependents and you have a good idea of how you want to distribute your estate, you can easily find an online legal service to get you started with estate planning documents and help you create a will online. Many services include living wills and POAs, as well as the option for attorney advice.

If you have dependents who will need care after you’ve died, you want to disinherit a family member, or you’re generally having trouble deciding how to divide your estate, you have two options. The first is to use an online estate planning service and opt for the package that includes attorney assistance. Services will typically charge an annual fee to have access to an attorney. Still, this fee is likely to be less than paying for a private attorney.

Our top choices for estate planning services offer basic will packages starting at $39.99. But you can get a package that includes attorney assistance, as well as additional estate planning documents, for around $249. Estate planning attorneys will either offer services for a flat fee or charge several hundred dollars per hour to work with you.

If you have more complex needs, you may want to contact a law firm specializing in estate administration and planning. Many attorneys offer free consultations to help you find the best fit.

After estate planning

Once you’ve finalized all the necessary documents and the originals are in one safe space, remember to keep them updated.

We spoke with Tim Hurban , Esq., an estate planning attorney licensed in Georgia and Michigan with more than 12 years of experience, about how often and when you should update your estate planning documents. He advised “updating your will and other estate planning documents . . . based on individual circumstances and life events.” Specifically, Hurban told us you should review and update these documents in situations such as changes in:

• Family structure (marriage, divorce, children, grandchildren)
• Assets and liabilities (property, business, financial circumstances)
• Laws (tax, inheritance)
• Personal wishes
• Health care preferences

Typically you should revisit your estate plans every three to five years—even without major life changes. If you create your documents using an online will maker service, many services offer free, unlimited changes for at least the first 30 days after purchase. With services that offer a membership, you’ll generally be able to make unlimited updates to your estate documents, so long as you pay the monthly or annual subscription. The Reviews Team chose Trust & Will as the “Editor’s Pick” in our roundup of the best online will makers of 2024 because of their helpful guidance and ongoing updates, a service that costs $199.99.

You can supplement the benefits of estate planning by using other tools to plan for your future. NCOA’s Age Well Planner gives personalized guidance on financial, health, and other decisions.

Frequently asked questions

Estate planning is not only about your peace of mind—it gives your loved ones guidance on how to move forward after you’re gone. It also plans for the care of individuals or animals who depend on you. Effective estate planning can also minimize the tax burden and probate costs that would typically deplete your estate.

The biggest mistake you can make in estate planning is failing to have a plan at all. A simple will is better than no plan—even if your situation is complicated. Other common mistakes are not properly executing estate planning documents, not providing for future care of dependents, and not expressing wishes for end-of-life care.

Not necessarily. Many small or straightforward estates can be managed using a low-cost online service. These services sometimes provide the option of consulting with an attorney for an additional fee. For very large or complex estates, consulting a specialized attorney or tax professional is a good idea.

Absolutely not! Everyone benefits from estate planning. In fact, failing to plan can lead to lengthy court processes and high probate fees, which affect small estates to a greater degree than large ones. Planning ahead allows your loved ones to keep as much of your estate as possible by avoiding unnecessary costs or taxes.

Have questions about this review? Email us at [email protected] .

• Centers for Disease Control and Prevention. Health Insurance Portability and Accountability Act of 1996 (HIPAA). Found on the internet at https://www.cdc.gov/phlp/publications/topic/hipaa.html
• IRS.gov. Estate Tax. Found on the internet at https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax
• IRS.gov. Frequently Asked Questions on Gift Taxes. Found on the internet at https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes