Purpose and scope: Overview, definition, and example
What is purpose and scope?
Purpose and scope refer to the foundational elements that define the objective and limits of an agreement, contract, or project. The purpose outlines the primary goals or reasons for entering into the agreement, while the scope specifies the boundaries and extent of the work, responsibilities, or services involved. Together, these elements help ensure that all parties understand the intention behind the agreement and the specific tasks or obligations they are expected to perform. The purpose and scope serve to set clear expectations and prevent misunderstandings by clearly defining what is and is not included in the agreement.
- Purpose defines the "why" of the agreement or project.
- Scope outlines the "what," specifying the activities, deliverables, and limitations related to the agreement.
Why are purpose and scope important?
The purpose and scope are important because they provide clarity and direction for both parties involved in a contract or project. Clearly defined purpose and scope help to:
- Align the expectations of all parties involved.
- Prevent scope creep (the gradual increase of work beyond the original agreement).
- Establish clear limits on what is included and excluded from the agreement.
- Provide a basis for measuring the success of the project or fulfillment of the contract.
By defining the purpose and scope at the beginning of an agreement, businesses can ensure that the objectives are clear, the necessary resources are allocated, and the work is carried out effectively, without unnecessary expansion or deviation from the original goals.
Understanding purpose and scope through an example
Imagine a company entering into a contract with a contractor to design a website. The purpose of the contract is to create a user-friendly website to promote the company’s products and services. The scope specifies the number of web pages, the features to be included (such as an e-commerce platform), the timeline for delivery, and the responsibilities of the contractor, such as design, content creation, and testing.
In another example, a consulting firm enters into an agreement with a client to perform a market research study. The purpose of the contract is to provide the client with insights into customer preferences and market trends. The scope outlines the specific research methods (such as surveys or interviews), the target market, the timeline for delivering the report, and the expected deliverables, such as a written analysis and a presentation.
An example of a purpose and scope clause
Here’s how a purpose and scope clause might look in a contract:
“The purpose of this Agreement is to establish the terms and conditions under which [Service Provider] will provide website design and development services for [Client]. The scope of the services includes the design of a website with up to 15 pages, an e-commerce platform, and search engine optimization (SEO). The project will be completed within 90 days from the start date, with deliverables including design prototypes, final website launch, and post-launch support for 30 days.”
Conclusion
The purpose and scope are fundamental elements of any contract or project, as they define the reason for the agreement and establish the boundaries of work or services to be performed. By clearly outlining these components, businesses can avoid misunderstandings, prevent scope creep, and ensure that all parties involved are aligned in their expectations and responsibilities. Well-defined purpose and scope also help to manage resources effectively, measure success, and avoid disputes during the course of the agreement.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.