Statement of work template

Free Docusign Scope of Work Template

Use this free SOW template to create the "playbook" for a project, ensuring both you and your client have a clear, shared understanding of what is included and excluded from the job. A well-defined SOW is an essential tool for reducing scope creep and preventing costly disputes in Australia.

Docusign's SOW template is fully customisable to clearly outline the project's objectives, specific deliverables, milestones, and payment schedule. Once the SOW is completed, you can securely share the document via a Docusign envelope to the client for their electronic signature. The document, once signed, is securely stored in your Docusign account for record-keeping and easy access, and you can still download and print out a hard copy if needed.

Overview

In Australia, a SOW is the project-specific document that translates a high-level goal into an actionable plan. 

The key purpose of this SOW template is to set clear expectations and measurable criteria for project completion. This helps ensure the project stays on budget and on schedule. It is critical to be specific and use clear language to avoid any ambiguity, as vague or incomplete scopes can lead to expensive contract arguments.

A comprehensive SOW includes not only the work description but also the commercial terms, such as the fee structure, late payment rules, and the process for handling variations (changes to the original scope). This SOW template also includes a set of clear terms and conditions that will govern the project, avoiding the need for a separate service agreement.

Who It's For

This SOW template is essential for any Australian business or independent contractor that provides services to a client on a project-by-project basis, particularly in professional fields:

• Contractors and Consultants: Those providing services in IT, marketing, design, construction, or creative fields to clearly define the boundaries of a fixed-fee or time-and-materials engagement.

• Clients/Businesses (The Buyer): To ensure transparency and accountability from the service provider, clearly defining what is being paid for and how quality will be measured.

• Project Managers: To use as the "project blueprint" for execution, aligning all stakeholders on tasks, dependencies, and deadlines.

Purpose of the Agreement

The primary purpose of the Statement of Work is to clearly and legally define the exact parameters of the service engagement. This helps both parties manage risk and ensure successful delivery by aiming to:

• Prevent Scope Creep: By explicitly detailing the Scope of Work (what is included) and what is Out of Scope (what is excluded), it prevents the client from making extra demands without a corresponding change in price or time.

• Define Success: It sets clear Deliverables and Acceptance Criteria (the standards the work must meet) to formally confirm when the project is successfully completed.

• Set Payment Milestones: It structures the Payment Terms around milestones or deliverables, tying payment directly to project progress.

• Clarify Responsibilities: It outlines the Client Responsibilities (dependencies like timely approvals or information) to ensure the contractor is not penalised for delays caused by the client.

Key Clauses and Information

A compliant Statement of Work should include the following essential, project-specific clauses and details:

• Project Overview: A short summary of the work, the objectives, and the expected outcome.

• Scope of Work: A detailed description of the services and tasks the contractor will perform. It is crucial to list explicitly what is Out of Scope.

• Deliverables: A clear, measurable list of the tangible items or results the contractor must provide (e.g., "Final Report," "Completed Website Mock-up").

• Project Timeline and Milestones: The SOW Commencement Date, SOW End Date, and a schedule of milestones with estimated completion dates.

• Acceptance Criteria: The specific, measurable standards the Client will use to review and formally accept the deliverables.

• Payment Terms: The Total Fees, whether they are Exclusive of GST, a detailed Payment Schedule tied to milestones, and the late payment fee/interest rate.

• Change Control Process: A formal process requiring a written agreement from both parties for any variation to the scope, timeline, or fees.

• Warranties: A warranty from the Contractor that the services will be performed with due care and skill and in accordance with accepted industry standards.

• Intellectual Property (IP): A clear statement on whether the Client or the Contractor will own the Developed Intellectual Property (the new materials created).

• Governing Law: The State or Territory whose laws will govern the agreement.