Statement of Work - What are the advantages of this model to end clients/customers?
Statement of work for end clients
The advantages of this model
If you are an end client and you understand the huge benefits of engaging consultancies who deliver their services through a SOW, you will reap the benefits of not only being exempt from the compliance burdens of off-payroll (because the responsibility for making any IR35 status determinations will shift to the consultancy), but having an enormous amount of talent available on your door step. Furthermore, this model can be much more cost effective when scoped, managed and contracted properly as it avoids large cost increases or resource changes and provides more certainty on project price or output.
Compliance measures
Delivering a SOW the right way
But there is a massive caveat here- not every time & materials (T&M) assignment can be shoehorned into a SOW. And, for a SOW to be delivered compliantly you must be willing to relinquish control of projects entirely to the consultancy. Finally, remember that the resource makeup of SOWs is almost irrelevant – the actual outcomes are what matters.
In general terms, SOWs provide end clients with more certainty on project price or output as suppliers generally charge on a fixed price basis, subject to meeting agreed deliverables and milestones, and a SOW can be much more cost effective when scoped, managed and contracted correctly as it avoids large cost increases or resource changes.
Moreover, SOW arrangements are often approved by procurement or department heads rather than HR as project-based work does not involve headcount issues.
Contents
Explore more of this series
- Part 1. Is there a SOW light at the end of the tunnel?
- Part 2. When a new model isn't new at all
- Part 3. What exactly is a SOW in legal terms?
- Part 4. How can this model benefit you in you are an agency?
- Part 5. What are the advantages of this model to end clients/customers?
- Part 6. What is a genuine outsourced service?
- Part 7. Why end clients need to conduct a SOW risk assessment
Carla Roberts
About the author
The team is headed by Carla Roberts, a dual-qualified (US/ UK) lawyer. who has over 14 years of experience advising the staffing/recruitment industry. Carla was previously Head of Legal for a large recruitment company and also worked as Sr. Legal Counsel for Alexander Mann Solutions. Her career has included another 10 years working in a compliance managerial roles for large insurance companies.
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