The Statement of Work (SOW) is a critical business document used in New Zealand to define and govern specific project engagements or service delivery arrangements. This document type is essential when organizations need to clearly articulate the scope, deliverables, and commercial terms of a specific engagement. The SOW typically either accompanies a Master Services Agreement or functions as a standalone contract, providing detailed specifications of work to be performed, timelines, acceptance criteria, and pricing. In the New Zealand business context, SOWs are particularly important for ensuring clarity in business relationships and maintaining compliance with local contract law and commercial practices. The document serves as a key reference point for project execution, performance measurement, and dispute resolution, making it an essential tool for managing business relationships and project delivery.
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1. Parties: Identifies and provides full legal details of all parties to the SOW
2. Background: Contextual information about the project and relationship between the parties
3. Definitions: Key terms and their meanings as used in the SOW
4. Scope of Services: Detailed description of the services to be provided and any exclusions
5. Deliverables: Specific outputs and deliverables to be produced
6. Timeline and Milestones: Project schedule, key dates, and delivery milestones
7. Acceptance Criteria: Criteria for accepting deliverables and testing procedures
8. Pricing and Payment Terms: Costs, payment schedule, and invoicing requirements
9. Resources and Requirements: Personnel, equipment, and resources required from both parties
10. Governance: Project management structure, reporting requirements, and communication protocols
11. Term and Termination: Duration of the SOW and termination provisions
1. Change Control: Process for managing changes to scope, timeline, or deliverables - used for complex projects with likely variations
2. Service Levels: Specific performance metrics and service levels - included when ongoing service quality measurements are required
3. Business Continuity: Disaster recovery and business continuity requirements - needed for critical services or long-term engagements
4. Security Requirements: Specific security protocols and requirements - included when handling sensitive data or systems
5. Knowledge Transfer: Requirements for training and knowledge transfer - used when deliverables include capability building
6. Transition Services: Entry and exit transition requirements - needed for complex service transitions
7. Intellectual Property Rights: Specific IP arrangements - included when significant IP will be created or licensed
8. Location and Travel: Specific requirements about work location and travel - used when service delivery involves multiple locations
1. Schedule 1 - Detailed Technical Specifications: Technical details, architecture, and specific requirements for deliverables
2. Schedule 2 - Pricing Schedule: Detailed breakdown of costs, rates, and pricing models
3. Schedule 3 - Resource Schedule: Details of key personnel, roles, and responsibilities
4. Schedule 4 - Project Plan: Detailed project timeline, dependencies, and delivery schedule
5. Schedule 5 - Testing and Acceptance Procedures: Detailed testing requirements and acceptance processes
6. Appendix A - Related Documents: Reference documents, standards, or specifications that form part of the SOW
7. Appendix B - Templates and Forms: Standard templates for reports, change requests, and other project documentation
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