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SOW vs Contract

What's the difference between a Statement of Work and a contract? They both almost seem like the same thing to me.

Comments

  • Here is a generic SOW sample. Does a contract go into more detail?
    AMX PROGRAM DESCRIPTION NARRATIVE:
    All equipment shall be Owner Furnished Equipment; this proposal is for programming
    the AMX NetLinx System for the xxx Room as described below:
    
    Remote Control Systems:
    The remote control system shall consist of an NI-xxxx Integrated Master/NXI controller,
    NXT-CVxx Multimedia Tilt Screen Touch Screen System located at the center of the
    room which is primary and shall have full control. The capabilities of this remote control system is based on drawings supplied to date, as well as, several conversations shall be as follows:
    
    System Power: There will be no System Power On/Off provided for this system.
    
    NXT-CVxx Control:
    
    Source Selection:
    Extron Matrix Inputs are RGBHV and are Scaled before the Matrix:
    Button Names are User changeable with custom text editor and an alphabetized list
    1 - Input
    2 - Input
    .
    .
    .
    32 ? Input
    
    Extron Matrix Outputs
    Button Names are User changeable with custom text editor and an alphabetized list
    1 - Output
    2 - Output
    .
    .
    .
    32 ? Output
    
    Plasma Control: Plasma Audio: Up / Down / Mute
    Input Selection: RGB1 / RGB 2 / Video 1/ Video 2 / S-Video
    
    Transport Functions: 
    
    [VHS] Play, Stop, Pause, FFWD, REW, Search Fwd, Search Rev, Record
    CH +, CH -, Keypad, TV/VCR, Preset Stations as follows:
    CNN, CNN Headline News, Fox News, MSNBC
    
    [DVD] Play, Stop, Pause, Skip Fwd, Skip Back, Scan Fwd, Scan Rev, Record
    Menu, Arrow Up, Arrow Down, Arrow Left, Arrow Right, Enter, Clear
    
    [CD ] Play, Stop, Pause, Skip +, Skip ?
    
    TV Tuner Functions: 
    
    CH +, CH-, Keypad
    Preset Stations as follows: CNN, CNN Headline News, FOX News, MSNBC
    
    Volume: Pgm Audio Up / Down / Mute
    
    
    Requirements:
    
    1. Programmer will require a complete set of the issue for build system drawings to
    include the audio, video and remote control for review two days prior to a scheduled face to
    face meeting with Buyer to discuss details before creating page layouts or code.
    
    2. Programmer will produce the panel pages in two steps. They are as follows:
    	[1] Panel pages will be created and presented for discussion with your project manager.
    	[2] Changes will be made as per the above discussion and Rev 1 will be created and
    	Submitted for your review. At this time minor changes may be made such as button
    	names and or symbols, but changes beyond Rev 1 may carry additional fees. A
    	written sign off of the pages will be required at this time. Once sign off is received, 
    	actual programming will begin.
    
    3. Buyer needs to supply a technician to assist for troubleshooting while Programmer is on site.
    
    Breakdown of Charges:
    
    ? In shop programming to include, panel pages for approval and sign off before initial programming shall occur.
    ? On site programming to include, two (2) days on site to debug program. If additional time is required due to equipment and/or wiring problems additional On/Site time will be at $xxx/hour.
    
    Programming Fee: $ xxx
    
    Terms
    1. This quotation is valid for thirty (30) days.
    2. This quotation does not include applicable Sales Tax.
    3. Payment terms are as follows:
    	a) 60% Due Upon Receipt of the Order
    	b) 25% Due Upon Commencement of Site Programming
    	c) 15% Due Upon Sign Off
    4. Installation hours are xxx am to xxx pm Monday through Thursday, excluding holidays.
    Beyond the listed hours for site work additional fees will be applicable.
    5. Buyer will be responsible for all building permits.
    6. Buyer will be responsible for supplying any and all of the RGBHV, S-Video,
    video, audio and network connections as they relate to entire system including the computer
    network connections. It is also Buyer's responsibility to secure IP addresses for the AMX NI-xxx if this
    device is to become part of the overall network.
    7. Programmer is not responsible for troubleshooting equipment and/or wiring
    problems. Programmer will assist should the need arise although our allowable time is no more
    than xxx minutes per device or additional fees may apply and will be brought to your attention.
    
    Installation Services
    Programmer will provide the following:
    1. A one time operational training of your system at a maximum of 2 hours.
    2. Provide phone support of this program for a period of three months.
    3. Provide a CD with the panel pages and the program at various stages of the installation
    with the final revision when sign off occurs.
    
  • jazzwyldjazzwyld Posts: 199
    What we do...

    I think everyone may have a different take on this, but I'll give you mine/ours. For our projects there are a few different documents we work with.

    1.) Scope of Work (Statement of Work)
    2.) Sales Agreement (Contract)
    3.) Proposal

    1. Scope of Work - is a description of what we are going to do for them. This has plain speak description of the number # TV, # of sources, how they are being mounted, how the control system will work, etc etc, even scalability. This is the main document the client and us refer to so we can say we have completed a project. I can send you a sample if it would help.

    2. Sales Agreement - We shy away from using the word contract, because depending on the state where you live contracts have to be fulfilled at time of payment. The way most integrators work the first part of money isn't when your items are being delivered, but I digress. This document describes the payment method, paying party, our liabilities, exemptions, and it "legally" (I use that word very loosely), ties the proposal and scope of work together.

    3. This is a line item document with installed prices for each room and discipline in the project.
  • For me the SOW is what your going to provide to them, and the contract is a legal document stating that you are going to provide something, adn they are going to pay for it with the terms included for all of that.
  • maxifoxmaxifox Posts: 209
    jazzwyld,

    If you may provide a sample of SOW I would greatly appreciate that. If it can be published in the thread, that would be the best (everyone can benefit from that), if that is not possible may I ask for PM?

    Thank you in advance.
  • maxifox wrote: »
    jazzwyld,

    If you may provide a sample of SOW I would greatly appreciate that. If it can be published in the thread, that would be the best (everyone can benefit from that), if that is not possible may I ask for PM?

    Thank you in advance.

    I'm kind of curious to see that myself. Is the example I posted not a SOW?
  • jazzwyldjazzwyld Posts: 199
    Sample

    Here is a sample of one our older Scope of Works.
  • jazzwyldjazzwyld Posts: 199
    I'm kind of curious to see that myself. Is the example I posted not a SOW?

    I think you posted a Scope of Work. I think there is a difference in the audience. Mine is for a client, it looks like yours is for a IT director or something of the like.
  • jazzwyld wrote: »
    I think you posted a Scope of Work. I think there is a difference in the audience. Mine is for a client, it looks like yours is for a IT director or something of the like.

    Gotcha. When comparing the two, it looks like you guys were doing everything, whereas the one I had was specifically for programming only. I guess mine would be an example of a SOW between a lone wolf programmer and a client where the client already has everything on site and installed. It looks like the programmer is either getting hired because the client added new equipment and requires new programming, or the programmer was subcontracted by the installation company to write a fresh program.
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