A statement of work, or SOW, defines the scope, deliverables, responsibilities, schedule, acceptance method and pricing for a specific engagement. It translates a broader contract into executable work. A vague SOW shifts important decisions into email and makes changes, invoices and performance harder to govern.
What should an SOW contain?
- Business objective and scope boundaries
- Deliverables, milestones and dependencies
- Client and supplier responsibilities
- Assumptions, exclusions and required inputs
- Acceptance criteria and review periods
- Fees, payment milestones and reimbursable costs
- Change control, governance and completion conditions
How does an SOW work with an MSA?
A Master Services Agreement normally supplies the recurring legal terms. The SOW authorizes a particular project or service. The documents should state their order of precedence and identify any permitted deviations.
SOW vs. service level agreement
The SOW explains what work and deliverables are required. A Service Level Agreement defines measurable service performance. An ongoing service may use both: the SOW sets scope and price, while the SLA sets service targets and remedies.
What should be verified before approval?
Confirm that each deliverable has an owner, date, acceptance test and pricing consequence. Check that dependencies and exclusions do not undermine the intended outcome, and that invoices can be matched to objective milestones or service periods.
