A well-defined scope of work provides guardrails to develop accurate pricing and measurable KPIs as defined in a supplier MSA.
- SOWs may be set up as tasked based vs' outcome-based
- Supplier provided SOWs may vary from written SOWs provided by clients
- Misaligned SOWs may cause budget issues during transitions when services being provided do not match client expectations
SOW - Alignment
MRO-021 Ver 1.2 (Dec 23))
SOW - Key Points
SOW - Modifications
1. Task Based – a prescribed task and frequency of service scope
- Client familiarity and comfortability
- Tend to be higher cost because the supplier must ensure all tasks are complete whether they are necessary or not
2. Outcome Based - An SOW that outlines the traditional services but not prescribing exactly when and how often to perform those tasks
- In order to control quality, a more robust KPI program should be included in this type of SOW
Both SOWs can be applied to either regular recurring services and preventative maintenance programs. CBRE can often drive savings through either an optimised task-based SOW or through an outcome-based SOW
Prescribed documented SOW that has been provided to supplier or listed in RFP:
- Verify with suppliers to understand SOW vs. actual delivery
- Determine if discrepancies exist and have the supplier provide revised pricing to match SOW
- If it is cost reduction present to the client the logic of re-engineering the SOW, pricing, and solution
- If cost increase, carefully understand if there are other opportunities to at least bring it to a cost neutral position, perhaps reducing other parts of scope that are not as necessary
- If there are no opportunities to maintain cost neutrality, build a strong business case as to why / how costs need to increase, such as safety to employees
Identify specialty outliers
- If unique outliners exist, develop SOW's for each site where there are common SOW elements
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MRO
SOW & Standardisation
BID
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Link to MRO SoW