The Scope of Work (SOW) is the second step in the Terms and Conditions -> Scope of Work -> Work Order -> Inspection Report process. It is the menu for how the work is to be done on your project. Extremely detailed, it reflects how you would do the work so that those performing the technical labor replace you on the project.
The SOW is a dynamic document, meaning that it will be adapted as you become aware of new products or techniques. We recommend issuing a new SOW for each project so that the subcontractor always has the latest version in its hands.
It is a notice to the subcontractor that he has to meet this level of performance to be paid. The document describes to the subcontractor what you expect to have done, how you expect to have it done, and the consequences if the work is not done correctly. This document should strive to eliminate any confusion about your work requirements.
and move away from the hands-on role to the hand-off role, the SOW preserves and extends your knowledge to the tradesmen doing the work.
exactly how you want the work done will help you separate the weak subcontractor from the future team member. The subcontractor who balks at a list of reasonable performance benchmarks to which he is going to be held is a subcontractor you are better off without.
that many subcontractors will offer suggestions about how to better perform the tasks listed once they see that we are serious about meeting the benchmarks. The document actually becomes a discussion starter for improving processes and products.
will work very well for enforcing warranty repair issues. Once agreement exists up-front as to what the subcontractor responsibilities are, it is very easy to demonstrate where the sub may have strayed from the guidelines.
establish a very simple “yes-no” decision model for payment. If all the work was completed as agreed, payment will be made. If not, payment will be made when the work meets expectations.
to enforce quality measures on the job. This fact will put the subcontractor in the correct frame of mind. Just as importantly, it will exhibit your effort to control project quality to your client, lender, and any other interested party.
The SOW, and in fact the entire Terms and Conditions -> Scope of Work -> Work Order -> Inspection Report process, is an important part of your financial and legal risk management program.