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Statements of Work

Navigating Contracts: MSA or SoW?

Apr 17, 2024
2
min read

In the intricate world of business contracts, both MSA (Master Services Agreement) and SoW (Statement of Work) serve as crucial navigational tools. Understanding the distinctions between them is not just a legal exercise but a practical skill essential for successful business ventures.

Unveiling the Difference: MSA and SoW

At the top of the contractual hierarchy lies the MSA, a comprehensive agreement that lays the groundwork for future collaborations between supplier and buyer. On the other hand, the SoW acts as a project-specific roadmap, delving into the details of individual endeavours. The MSA provides a standardised framework, while the SoW offers flexibility for tailoring agreements based on project specifics.

Choosing the Right Tool:
  • MSA Mastery: Employ MSA for long-term relationships and streamlined negotiations, establishing overarching terms and conditions.
  • SoW Precision: Opt for SoW for standalone projects or when customisation of project-specific details is needed, encapsulating all relevant particulars.

Why the Distinction Matters?

Obligations in Focus:

At Deployed, we believe the distinction between MSA and SoW is pivotal for clarifying obligations. While an MSA outlines general terms and conditions, a SoW delves into project specifics, defining roles and responsibilities with precision. MSAs are used for long term contracts and services, or as a ‘catch all’ for relationships that are governed on each service via a SoW.

Risk Mitigation:

Confusion between MSA and SoW terms often leads to misunderstandings and increased risk. Clear differentiations ensure that all parties share a common understanding of the project's scope, deliverables, and timelines.

Guiding through contracts

Consistency Check:

For providers working with an MSA, a consistency check is crucial. Aligning every aspect of the SoW with the overarching MSA, or explicitly addressing any variations, ensures a seamless contractual fabric.

Communication is Key:

Transparent communication is the key to successful collaboration. Open discussions about which components fall under the MSA and which under the SoW pave the way for a partnership marked by clarity and understanding.

Want to learn more? Download the Deployed & WorldCC Statement of Work Toolkit to help craft a comprehensive Statement of Work

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Work begins before it starts®

Contact the team at Deployed to get more information about learning, automation, or platform demos.

Work begins before
it starts®

Contact the team at Deployed to get more information about learning, automation or pilots.