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sow contract - examples

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    sow contract - examples

    Hi

    I have been determined as outside but the client will only engage on a SOW milestone based contract of which I am ok about.

    Does anyone have any examples?

    I have seen their draft assignment and it refers to a day rate based on a number of delivery milestones. Has anyone done this yet if so how did you approach this regarding day rates vrs milestones

    Thanks

    redman

    #2
    The utopian trick will be to create and / or accept a SOW based on Milestones of which none are dependent on any other areas of the business. In other words, if your work allows you to operate in a silo you will have a fighting chance to be paid according to the current day rate model.

    Failing that, a SOW that has so many allowances for when, through no fault of your own, the client has delayed your deliveries so that again, you get paid.

    Having been on the client side of a SOW for a Big Four consultancy, we spent more time arguing about the content and making payments than in doing the actual work. Clearly the SOW is a way through but for long projects of a year or more, I cannot yet see how this will work in perpetuity.

    Comment


      #3
      It's difficult to say a SOW is truly milestone based when the payment is on a T&M basis.

      Ideally, you should agree milestones and billing should be reflective of the time and effort to meet them.

      When I last worked on a SOW basis, the agreement was for a fixed price divided up into instalments that were invoiced every two months and for specific things to be delivered in order for payment to be released.

      The gig was only for 6 months so this approach worked well. I had a good working relationship with the client so getting sign off that the deliverables had been met wasn't difficult.

      You do need to make sure that the terms are very clear to ensure the client can't wriggle out of payment.

      There isn't a template, per se, just make sure that the project deliverables and work acceptance process are very clearly laid out - the latter is vital if payment is linked to deliverables. The devil will be in the detail. The client will want broad statements that allow for scope creep - you should be looking for specifics.

      Comment


        #4
        Originally posted by redman View Post
        Hi

        I have been determined as outside but the client will only engage on a SOW milestone based contract of which I am ok about.

        Does anyone have any examples?

        I have seen their draft assignment and it refers to a day rate based on a number of delivery milestones. Has anyone done this yet if so how did you approach this regarding day rates vrs milestones

        Thanks

        redman
        IMO you should not be looking for examples. This will change project by project and should be highly dependant on the situation. Asking for examples is just going back to tick box contracting and achieves nothing, particularly if HMRC comes sniffing.

        This is an area we've discussed endlessly and have always said you should have a SoW with ANY outside gig. It's pretty fundamental to differentiate from a job spec and now the clients need it to meet legislation. It's time for contractors to step up and understand what they do and start acting like a business. It shouldn't be difficult for people that have been considering this for years but if you haven't it's a very steep learning curve.

        If it's fairly obvious what your deliverables over a timescale are I'd argue your outside based delivery isn't working and it's just a sham.

        I'm on one and I have to say it's woolier than I'd be happy with due to the situation I'm in and can only be really nailed down once discovery has finished and the work starts but happy enough it will stand up to scrutiny. When the work starts it will be blatently obvious what they are. Are they achievable? That's the crux really. Many reasons I might miss the time scales, all beyond my control, but as long as we agree what work to be done is and I evidence why it couldn't at the end then it will do.

        New times, new thinking I am afraid. Got to get your head around it as it's the only way forward now.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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