best ractices of drafting statement of work
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Best Practices: DraftingStatements of Work and
Technical Schedules
Carolyn L. Craig, Partner, Cooley
Christopher Sundermeier, Partner, Cooley
, ,
2010 Cooley LLP, Five Palo Alto Square, 3000 El Camino Real, Palo Alto, CA 94306The content of this packet is an introduction to Cooley LLPs capabilities and is not intended, by itself, to
provide legal advice or create an attorney-client relationship. Prior results do not guarantee future outcome.
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SOWs and Technical Schedules
Overview
A statement of work (SOW) is a document thatdescribes in detail the services to be performed ande vera es to e e vere .
Othertechnical schedules document other details of
maintenance and support obligations.
the contract -- the failure to properly document theperformance elements is often the reason parties end
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SOWs and Technical Schedules
Elements of a SOW
Scope of work (tasks, development effort)
Pricin and a ments amount timin ex enses
Roles and responsibilities (assumptions)
,
Schedule for performance/delivery (milestones)
Change order process
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SOWs and Technical Schedules
Other Technical Schedules
Transition Plans (critical
milestones/acceptancecriteria)
Technical Architecture andProduct Standards
Oversi ht/Mana ement Data Security Requirements
Network Access Policies
Process
Service Levels (SLAs, SLCs,
Requirements
Customer/Vendor Equipment
Pricing
Reports
an o ware Business Continuity and
Disaster Recovery Plan
Early Termination Fees
Termination Assistance
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Vendor Update/Refresh
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SOWs and Technical Schedules
Potential problems with SOWs/Technical Schedules
Too general
Reads like marketin / romotional materials
Not treated as part of the contract
Doesnt fill in all blanks left open in main agreement
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SOWs and Technical Schedules
What takes precedence and controls?
Main Agreement generally negotiated withcontract/legal review and approval
SOW/Technical Schedules generally negotiated by
business team, but more details on performance Establish Default Main agreement controls unless a
provision in the SOW/Technical Schedule expressly
What is and is not a conflict?
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SOWs and Technical Schedules
Real Life Example #1
Main agreement heavily negotiated as to paymentmilestones, specifically tied to functionality that woulde ava a e or e ease , e ease , etc.
In draft SOW, payment milestones were set up as-without identifying what functionality was to beincluded in any of the interim Releases
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SOWs and Technical Schedules
Real Life Example #2
Client procuring software installation, integration andconfiguration services for new platform fixed fee of
, n so tware an , n serv ces
Main agreement negotiated in detail as to software
Contractors draft SOW included only bullet points-
year term no mention of platforms performance,end result of the services, or any milestones for
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SOWs and Technical Schedules
Real Life Example #3
Vague or subjective performance obligations
com lies with the s ecifications and erforms to
[Buyers] satisfaction
provide engineers, installers and/or consultants toassist [Company] with post-sales support
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SOWs and Technical Schedules
Practice Tips
Train business team on importance of theseschedules and things to consider in drafting them
Create a checklist of items referenced in the main
agreement to be specified in the schedules Consider and document what takes precedence and
controls -- avoid conflicting provisions
e cons s en n e use o e n ons an o er terminology
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SOWs and Technical Schedules
Practice Tips
Use performance-based requirements, when possible
Re uirements/s ecs to be stated uantitativel(how many) and qualitatively (how perform)
Requirements must be verifiable (objectivestandards)
Generally, identify what is to be built not how to
u
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Contact Us
Carolyn CraigPartner
Christopher SundermeierPartner
Peter BurnsAssociate
Palo AltoHanover Campus3175 Hanover StreetPalo Alto, California 94304
Phone: 650/843-5327-
Palo AltoHanover Campus3175 Hanover StreetPalo Alto, California 94304
Phone: 650/843-5684-
Palo AltoHanover Campus3175 Hanover StreetPalo Alto, California 94304
Phone: 650/843-5251-
www.cooley.com