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While a statement of work can be sent to the client for approval and is flexible to change and negotiable, a contract is the final step in the negotiation process that binds both parties together.

While a statement of work can be sent to the client for approval and is flexible to change and negotiable, a contract is the final step in the negotiation process that binds both parties together. Both terms are often used interchangeably, but depending on the context, there's yet a slight difference between the two.

You'll note the activities, deliverables and timetable for the project. It's an extremely detailed work contract that defines the terms and conditions agreed upon between parties and lays the groundwork for the project plan.

The business person/team closest to the deal should be responsible for the first pass (whether drafting or reviewing). After all, they understand the ins and outs of the project better than anyone else. It is important not to make assumptions, use shortcuts or acronyms, or even gloss over steps in the SOW.

The most important aspect of the SOW is the scope. The overall objective listed in the SOW should make sense and support what you have asked the vendor to do. Check to make sure the documented, detailed scope aligns to what you think the scope should be, and includes everything.

A Statement of Work, often known as an SOW, is a business agreement that outlines deliverables and project goals. It's created to keep everyone on the same page about deadlines, scope of work, and project expectations.

After execution of a Statement of Work Agreement, if any change in scope of a project affecting price, deliverables, or schedule is requested, the contractor and the relevant State entity shall mutually agree to the changes in writing with a Statement of Work Change Order Form.