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Also known as a scope of work, a statement of work (SOW) defines the scope of a project between a business and a client. Keep in mind that an SOW only covers the specifics of a project?it doesn't take the place of a contractor agreement that goes into details like NDAs and deliverable ownership.

There are three main types of statement of work: Functional SOW. Performance SOW. Design SOW.

Common elements of an SOW include: Project objectives. Project scope. Major deliverables. Tasks that support the deliverables, and which party will complete them. Timeline for completion of work. Location of work and resources, equipment, and facilities needed. Payment costs, terms, and deadlines.

In terms of writing the statement of work, you'll want to be specific with this project document. You want to clarify the terms used to make them universally understood and clearly define who's going to do what and by what time those tasks must be completed.

A statement of work should include all elements necessary for successful project completion, including the scope of the work to be done and what is not included; the timeline of when the work is to be completed; and any applicable legal or regulatory requirements.

The following tips can be used as a reference when creating an SOW. Avoid verbs that can lead to vague statements. The phrase "the contractor shall perform" definitively states which party is to do the work. Avoid "should" or "may" because they leave the decision for action up to the contractor.

A statement of work or SoW is a contract setting up the expectations for the project and aligning the team(s) involved. Details should clarify the price, timeline, deliverables, process, expectations of requirements, invoicing schedules, and much more, depending on the scope and breadth of your project.