Misinterpretation of the statement of work (SOW) can lead to expensive scope changes. Project managers with good communication skills can lower the barrier and perception screens that lead to SOW misinterpretation. Project managers who prepare statements of work are often just as guilty as those who must interpret a client's SOW in using improper language or making improper assumptions. To illustrate the complexity of SOW preparation and interpretation, consider a company that wishes to train approximately 200 employees in the principles of effective project management. The customer has prepared a statement of work, which is shown in Exhibit 1. Your company has been invited to bid competitively on this training program. The program is a firm fixed-price effort. All bids must be received by the customer no later than 30 days from today. The SOW for this request for proposal appears in Exhibit 1. A "full" SOW would also include contractual terms and conditions, financial payment plans, and penalties. Analyze the "technical" SOW as it appears in Exhibit 1.

QUESTIONS

1. Are there any portions of the statement of work that can be misinterpreted or are simply vague? If so, what are they?

2. Is there any information missing from the statement of work that would be needed before effective pricing can be performed? If so, what information?

3. What assumptions must be made in responding to this SOW?

4. Why did the customer give you 30 days to respond rather than 10 days or even one week?

5. Prepare a pricing sheet that you would submit to the customer for the cost of this training program. Design the sheet or form and estimate the approximate cost of each item in the form.