What Is a Statement of Work (SOW)?

In project management, a statement of work (SOW) is a formal document that outlines a project's specific tasks, deliverables, and requirements. It is a contractual agreement between a vendor and a client that provides a comprehensive work description. 

The SOW includes all the necessary information and terms and conditions to ensure both parties clearly understand their roles, responsibilities, and expectations. It is a legally binding agreement governing the project's scope, timeline, resources, and other essential aspects. A clear statement of work should protect against any disputes and negotiations when the project is in motion.

Statement of work vs. scope of work

A statement of work and scope of work are related but different. Scope of work is a specific section within the SOW that focuses on the detailed description of how the vendor will execute and deliver the work. It defines the specific tasks, activities, resources, and methodologies that will be employed to complete the project successfully. The scope of work clarifies the approach and specific requirements for the vendor to meet the client's expectations. 

Components of a statement of work

A well-crafted statement of work (SOW) is crucial for project success. While you can follow any format you choose, some essential components include the following:  

Objectives

Clearly state your objectives. Think about why the project is happening and what you expect to achieve. Make objectives measurable so you will know exactly when you will achieve them. 

Scope of work 

Here is where you outline the vendor's work to achieve the project objectives. This section includes who will work on the project, what they will do, and the processes they will use. Details include tools and resources you will use and how you will report results and updates.

Milestones

Include milestones in your statement of work to show when you expect each deliverable. This information helps ensure an understanding of when to expect completed tasks across the project lifecycle. Often, delivery of these milestones corresponds with payment for that project phase. 

Timelines

A timeline estimates the project duration and when to expect each milestone, deliverable, and payment. It is a flexible part of the document that is subject to change if you include specific dates or may span a set of dates to allow for flexibility. 

Costs

The costs section outlines overall project costs, with breakdowns for any phases and costs for equipment, staffing, travel, and other expenses. It includes details of how you will deliver payments and when. 

Signatures

Both parties sign and date the statement of work documents to signify agreement with the terms. 

Related terms

• Project plan

• Gantt charts

• Sprint plan

• Procurement

Learn to manage projects with Google

As a formal document, a statement of work acts as a contractual agreement between you and your clients. You will use the SOW to outline the project’s various tasks, identify deliverables, and list its requirements, which is why it’s a critical part of managing projects. 

A statement of work is an important part of managing a project. If you are new to project management, consider expanding your skills with the Google Project Management Professional Certificate. This beginner-friendly programme can help you develop job-ready skills in as little as six months.