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ing to FAR 2.101, Performance work statement means a statement of work for performance-based acquisitions that describes the required results in clear, specific and objective terms with measurable outcomes. In other words, a PWS says what the seller needs to do, but does not say how to do the work.
It should be written in plain language to ensure mutual understanding and provide clarity on project scope, timeline, payment terms, quality standards, staff resources needed for completion, legal obligations for both sides as well as any other agreed conditions.
SOW is one of the most critical documents in ERP implementations. It includes detailed information about project scope, estimate, timeline, role and responsibility. It tells you what you will get from the vendor with the investment you will be making.
Employees earn a traditional salary but performance-based compensation seeks to reward them for their high performance above their job requirements. Performance-based compensation is most often awarded as a year-end bonus, though bonuses throughout the year are possible.
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