Statement of Works in Project Management

In a formally correct procedure, the contractor converts the deliverables to be provided into required activities (obligations) and creates the so-called functional specification documents as part of his offer. The simplest form is the specification of the delivery date and the unit prices. The most detailed form already contains the complete project planning (e.g. the contract schedule), as well as all documents that form the basis for it. For projects that require close coordination between the contractor and the client, the functional specification document can be developed by a joint working group. In the case of large-scale projects (e.g. civil engineering), the creation and contractual agreement of the specification sheet can be a project in itself.

The scope of works statement and the functional specifications should always be part of the contract between the client and the contractor.

Project Management Institute (PMI(

The term ‘statement of works’ does not appear in the PMI's (Project Management Institute) PMBOK® (Project Management Body of Knowledge) definition list current at this time, but means: ‘A narrative description of products or services to be supplied under a contract.

German Institute for Standardization (DIN)

The German Institute for Standardization (DIN) defines the the statement of works in it's DIN 69901-5:2009-01 as ‘By a client through an order determined totality of the deliveriables and services to be provided by a contractor under an order.’ („Vom Auftraggeber festgelegte Gesamtheit der Forderungen an die Lieferungen und Leistungen eines Auftragnehmers innerhalb eines Auftrages.“)

International Project Management Association (IPMA)

The Individual Competence Baseline (ICB) does not explicitly name a statement of works. Instead, it only speaks of "project scope" and "deliverables".

Prince2

PRINCE2 takes a different approach and abandons the system of the statement of works and functional specifications, as it does not describe the procurement processes.

In terms of content, the statement of works for the overall project is replaced by the project mandate and the description of the project product. Instead of the statement of works, PRINCE2 uses the product structure plan and the product descriptions as well as the management strategies.

Generally speaking, the client should draw up the scope of works statement. Nevertheless, it is often done by the designated contractor in coordination with the client. Occasionally it is also created in a joint working group, whereby the client knows his requirements best, and the contractor is more specialized and has better know-how of what is possible.

After receiving the scope of works statement, the contractor converts the results (deliverables) to be provided into required activities (obligations) and creates the so-called functional specifications as part of the offer to the client.