What does "Performance based SOW" focus on?

A "Performance based Statement of Work" (SOW) emphasizes the purpose of the project or service being delivered. This type of SOW outlines the expected outcomes, results, and objectives rather than detailing the specific processes or methodologies that need to be followed.

By focusing on the desired results, a performance-based SOW allows for flexibility in how those results are achieved, encouraging contractors to utilize their expertise to deliver the best possible solutions within the established parameters. This approach is particularly beneficial in complex projects where innovation and adaptability are critical to success. Overall, the goal is to ensure that the buyer receives value based on defined performance criteria, which aligns the interests of both parties around successful project outcomes.

This approach contrasts with other options, such as focusing on aesthetic value, costs, or design requirements, which do not provide the same level of outcome-oriented guidance necessary for assessing performance effectively.