One template, four different deals

One template, four different deals

The statementofwork.org thesis: no one has become a perfectly productive company by adopting a better template - but it's a start. Generative AI has made SoW contracts even more customised, and that broad creativity is not helping anyone. Adopting a standard, machine-readible, architecture of a SoW gets everyone on the same page.

Most organisations run every engagement through one SoW template. The same document buys a team of contractors by the day, a fixed-price build, an outcome measured on results, and a managed service that runs for years. These are four different commercial instruments wearing one shape.

Time and materials is a deal about effort. You buy days, so the contract controls rates, roles, and a cap on total days, or the meter runs without end. Fixed price is a deal about deliverables. You buy defined outputs for a defined sum, so the contract has to fix what those outputs are and what counts as accepting them, or the final payment becomes a negotiation. Outcome-based is a deal about results. You pay for an effect, so the effect has to be measurable, or it collapses back into time and materials. Managed services is a deal about sustained performance. You buy a service level over time, so the levels and the consequences of missing them have to be defined, or you pay full price for degraded service.

One template cannot hold four, because what protects you in one is irrelevant in another. A rate card is everything in T&M and meaningless in fixed price. An acceptance criterion is decisive in fixed price and only part of the story in a managed service. Forced into a single document, each deal comes out half-right and none comes out right.

The usual response is to customise the template per deal, which hands the problem back to bespoke authoring and all the novelty that carries. The alternative is four approved baselines, one per engagement type, each varied only where the specific work differs.

The instinct behind most weak SoWs is to write each one fresh. Every freshly authored scope is a novel document that no one has reviewed, priced, or tested against delivery, and that novelty carries a commercial cost the buyer rarely sees until it arrives. The standard inverts the instinct. It begins from a baseline the enterprise has already approved, eleven sections and fifty-one elements, and permits variation only where the work genuinely differs. The schema turns that structure into data, the substrate AI needs to extract obligations, score risk, and govern a portfolio, rather than generate one more unreviewed draft. Four approved engagement types replace one template stretched until it fits none of them.

The launch

statementofwork.org launches on 10 August at the World Commerce and Contracting APAC Summit in Sydney. The full standard and engagement types, and the first learning and certification modules go live the same day. You signed up before any of it was public, which means you see it first.

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