A well-written statement of work (SOW) acts like a roadmap for a project’s success. It clearly defines the scope, goals, timeline, resources, roles, and deliverables. Taking the time to develop a thoughtful SOW helps set expectations, prevent misunderstandings, and drive results.
This guide explains what to include in an SOW and gives tips for creating an agreement that sets your project up for success.
What is a Statement of Work?
A statement of work (SOW) is a document that outlines the terms, objectives, and expectations of a project. It captures the work activities, deliverables, timelines, and responsibilities of both the client and service provider. It transforms broad ideas into an actionable plan.
SOWs go by other names like scope of work, scope statement, or project charter. But they all serve the same essential purpose: to align all stakeholders on the project parameters.
8 Key Elements of an Effective SOW
While the format can vary, robust SOWs include these core elements:
1. Goals and Deliverables
- Clearly define the objectives, desired outcomes, products, and services to be delivered. Get very specific.
2. Scope and Requirements
- Specify the boundaries of the work, key constraints, and performance requirements. Omit anything out of scope.
3. Timeline and Schedule
- Outline project phases, milestones, delivery dates, review periods, and completion targets.
4. Roles and Responsibilities
- Identify the parties involved, their duties, and decision-making authority.
5. Resources
- List staffing, materials, equipment, facilities, and other assets needed, and who will provide them.
6. Pricing and Payment Terms
- Provide cost breakdowns, payment timelines, reimbursements, and change order process. Establish financial agreements.
7. Performance Standards
- Define quality metrics, testing protocols, success criteria, and acceptance process for deliverables.
8. Legal Provisions
- Include confidentiality, licensing, liability, and intellectual property stipulations governed by law.
Tips for Writing an Effective Statement of Work (SOW)
Follow these best practices for crafting an SOW that sets your project up for success:
- Be thorough but concise – Include sufficient detail without getting bogged down.
- Use clear, simple language – Avoid jargon and ambiguity.
- Establish measurable goals – Quantify targets to track progress.
- Define concrete deliverables – Specify the tangibles to be produced.
- Allow time for review cycles – Build in time for feedback and approvals.
- Set change process – Outline how revisions will be handled.
- Involve all parties – Get input to ensure buy-in.
- Use a template – Leverage a pre-designed structure if helpful.
With a well-constructed statement of work, you gain alignment, reduce risk, and set up your project for success from the start. The effort spent creating an SOW pays dividends throughout execution and completion.
Statement of Work (SOW) Example Template
Here is an example template for a statement of work:
Statement of Work
Project Title: [Insert project name]
Client: [Insert client name]
Service Provider: [Insert service provider name]
Goals and Deliverables
The goals of this project are to:
- [Goal 1]
- [Goal 2]
- [Goal 3]
The service provider will deliver:
- [Deliverable 1]
- [Deliverable 2]
- [Deliverable 3]
Scope and Requirements
The project includes:
- [High-level description of scope]
Out of scope items include:
- [Out of scope item 1]
- [Out of scope item 2]
Service provider requirements:
- [Requirement 1]
- [Requirement 2]
Client requirements:
- [Requirement 1]
- [Requirement 2]
Timeline
The project timeline is as follows:
- Kickoff meeting: [Date]
- Deliverable 1 draft: [Date]
- Deliverable 1 final: [Date]
- Deliverable 2 draft: [Date]
- Deliverable 2 final: [Date]
- Project completion: [Date]
Roles and Responsibilities
Service Provider
- [Responsibility 1]
- [Responsibility 2]
Client
- [Responsibility 1]
- [Responsibility 2]
Resources
The service provider will provide:
- [Resource 1]
- [Resource 2]
The client will provide:
- [Resource 1]
- [Resource 2]
Pricing and Payment
Total project cost: [Amount]
Payment schedule:
- Deposit upon contract signing: [Amount]
- Delivery of Deliverable 1: [Amount]
- Delivery of Deliverable 2: [Amount]
- Remaining balance upon project completion: [Amount]
Performance Standards
Deliverables will be considered complete when:
- [Metric/standard 1]
- [Metric/standard 2]
Legal Provisions
Confidentiality: [Summary of confidentiality terms]
Intellectual property: [Summary of IP ownership terms]
Signatures
Client Signature and Date
Service Provider Signature and Date