STATEMENT OF WORK( SOW)
A Statement of Work is a provision set up in Master Service Agreements. It’s a formal document outlining the specific work to be executed by a service seller for a customer. It puts into writing the work conditioning, the deliverables, and the timeline for work to be fulfilled.
Common rudiments of a SOW include
- Purpose
- compass of work
- position of work
- Period of performance
- Deliverables schedule
- Applicable assiduity norms the service provider must follow
- Acceptance criteria
- Any special conditions
- Payment schedule
BEFORE ENTERING INTO A MASTER SERVICE AGREEMENT
There are several effects to consider before you subscribe an MSA. You, your attorney or another representative should read it precisely.
Make sure the agreement directly describes all the work you could potentially do for the design and negotiate for all your company’s services, not just those supposedly demanded at signing. This covers you for cases where you hired to do welding, for illustration, and also have outfit leasing added on.
Determine who, precisely, is heldharmless.However, as there’s in the oilfield, it’s essential to know who’s remunerated, If there’s a high threat of injury or accident. In the type of case just mentioned, the remuneration clauses will go much further than “ knock for knock. ” They also include pollution and environmental damage. Using the Deepwater Horizon oil painting slip in 2010 as a guiding illustration, make sure, before you accept the threat for your workers and outfit, that you assess the threat essential in your part in the design.
Make sure you have the right quantum of liability insurance to cover that threat. You may be asked to give a instrument of insurance as one of the terms of the MSA.
Check the restrictions. An MSA may have terms that discord with work orders or other contracts. The Master Service Agreement takes priority, so you don’t want language in the MSA that could limit your capability to do work and make a profit on the design.
Eventually, look at the terms for termination of the agreement. It should show the prospects for all parties and what’s considered a breach of contract. You don’t want to subscribe an MSA that sets your business up for failure.
A Master Service Agreement isn’t the same as a work order. It doesn’t control the hours you work or the quantum of payment. It doesn’t address specific systems or jobs. still, since those terms are frequently in a work order, and if the work order conflicts with the terms of the MSA, the work order will be annulled.
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