2 Payment Models for Construction SOW

For Site development Projects and Construction SOW Projects, there are two other types of Payment Models:

 2 Payment Models for Construction SOW

  • Fixed bid: The cost of the project remains constant, and it’s up to the contractor to use resources (including personnel) in a way that stays within costs and profit margins. As long as the deliverables are met on time and within budget, the client doesn’t worry about how resources are being used in this construction SOW.

2 Payment Models for Construction SOW

  • Retainer: In this model, the client pays for the personnel and other resources allocated to a project. A certain amount is typically paid each week or month to retain these resources in this construction SOW.

 

A client may also want to include clauses that cover delays on both the client and the vendor side. This is especially important in SOWs for projects such as software development, unique building projects or projects where the full scope of the work is not known at the beginning of the project.

 

Miscellaneous/Special Requirements in Construction SOW

 2 Payment Models for Construction SOW

In this section, outline anything that hasn’t already been covered in the SOW. Requirements that might be articulated in this section include:

 

  • Security requirements (e.g., whether personnel need security clearance, what level, and whether special passes or badges are required to enter the job site)

  • Industry-specific standards not already covered in a previous section

  • Hardware/software access restrictions or requirements (e.g., in software development projects, system downtime, and maintenance)

  • Travel requirements, and which party pays for travel

  • Post-work requirements (e.g., support and testing)

  • Exclusions and assumptions that haven’t been covered in previous sections (e.g., non-scope related assumptions for project management SOWs, or details about who owns the code in software development SOWs)

2 Payment Models for Construction SOW

Acceptance Criteria/Signatures listed in the Construction SOW

 

Finally, this section covers how the client, buyer or entity will accept the project deliverables. It might outline which staff members are authorized to accept it, and who will review and sign off on deliverables. The client should provide guidance on how the work will be submitted, and include specific criteria for how to determine what is “acceptable” work.

 

Agreeing upon the acceptance criteria of this section of the Construction SOW before the project begins helps to avoid any miscommunication on either side when the project wraps.

 

Challenges of Writing a Statement of Work

 

There are a few common challenges that may be faced when writing an SOW.

 

These include:

 

  • Complexity. An SOW can be a complex document. They are unique to each new contract agreement a client and contractor enter into. SOW’s can vary widely depending on type of work required, the project duration, specific industry, and the payment model that will be used.

 

  • Risks of an incorrect SOW. An SOW is a document with legal weight, which is used in the contract creation and management process. As a result, there are real legal, financial, and operational risks for an organization that writes an SOW improperly. For example, if the client is unclear in their specifications, which causes the contractor to perform the work improperly, a legal battle could ensue over which party is responsible for correcting the mistakes—and both parties’ reputations could be at risk. For this reason, a good professional site development firm, one well versed in SOW’s such as C&C Site Development, Inc may be a cost saver in the long run in more ways than one.

 

  • Time commitment. Writing an effective SOW can be a time-consuming process. Due to the risks involved, you don’t want to rush it or take any shortcuts. Using a professional site development firm like C&C Site Development, Inc will save the learning curve involved in proper formatting and inclusion of an SOW. In fact the whole process can be transparent to you as it becomes a function of the Site Development firm, if you so desire.

 

  • Expertise. If you don’t have the knowledge and experience to write an SOW, it can be hard to find qualified writers who understand all the guidelines and requirements. The SOW is typically written by larger clients, but authors may vary, and more than one author may participate. This may include anyone from the project manager to a third-party.

C&C Site Development, Inc can help with all aspects of SOW’s as well as SOO, RFP or any other contracts and bid offerings that may be needed. Give us a call to descuss your next project, you will descover a Florida firm, qualified, licenced and ready to serve all you Site Development needs based right here in Central Florida.  No project is too large, but we can help with the smaller ones as well, call us today: 407-688-2657