Statements of Work

Ad Hoc Services

An ad hoc request is a scoped piece of work that must be:

  1. Clearly defined, by means of a functional specification document, and
  2. Well estimated using a predefined agreed matrix.

Application

An ad hoc request may be used when the work to be delivered can be accurately estimated at the time of placing the request. Any change to the original request requires a new estimate and a new pricing.

Pricing

Ad hoc requests are estimated according to an agreed complexity matrix that takes into account the type of development and the complexity of the development. Criteria should be in place to categorize the complexity.

Cases

This type of contract would likely be used for work that do not exceed 15 days and can be split into clearly identified pieces:

  • ABAP programs, including reports, download/upload programs
  • Enhancements, user-exits, BADIs
  • BI extractors, info providers, info objects, process chains
  • BI queries
  • LSMW objects

 

Time & Materials

A time & materials contract provides for acquiring services and/or products on the basis of:

  1. Direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit; and
  2. Materials at cost, including, if appropriate, material handling costs as part of material costs.

Application

A time-and-materials contract may be used only when it is not possible at the time of placing the contract to estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of confidence.

Pricing

Such contracts use a fixed hourly rate, and are based on 8 hours per day work during the total length of the contracts. The number of days per week and/or month is determined upfront but can vary between contracts.

Cases

This type of contract would likely be used for work estimated upfront to cover the duration of the contract:

  • ABAP development end-to-end
  • SAP enhancement end-to-end
  • BI development end-to-end
  • Data Migration end-to-end

 

Package

A package contract is a convenient way for acquiring support services with following limitations:

  1. Hours are purchased in advanced.
  2. Support does not apply to business critical systems (except clearly stated in the contract).

Application

A package contract is a variation of a time-and-materials contract. However no end date is promised and hours are not necessary spent continuously and by means of full days.

Pricing

Such contracts use a fixed hourly rate by chunks of hours, i.e. the more hours are purchased, and the cheaper the hourly price is.

Cases

This type of contract would likely be used for support activities:

  • Jobs monitoring
  • Process chain monitoring
  • Performance monitoring