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A statement of work (SOW) is a document that provides a description of a given project's requirements. It defines the scope of work being provided, project deliverables, timelines, work location, and payment terms and conditions.

Your SOW lists out all the criteria to make a project successful and your Scope of Work describes how exactly you'll accomplish this. For example, if the project goal is to redesign a website, then the Scope of Work might include detailed information on how to create a new sitemap or better map out an ideal user flow.

Both parties need to agree to and sign a statement of work (SOW). But what exactly is this document, and how does it fit into the broader landscape of business agreements? Read on to learn more about SOWs, what they are used for, and how to create your own.

How to Write a Good Statement of Work Introduce the project. You always begin the statement of work with an introduction. ... Define the vision. ... Set the project requirements. ... Define the scope. ... Set the deadline of the project. ... Allocate key resources. ... Create the schedule. ... Specify the terms of payment and due dates.

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.

Most statements of work include these sections: Objectives: Goals of the project. Scope: Work involved in the project. Deliverables: Products or services to be provided. Tasks: Activities that must be accomplished. Location: Where the work will happen. Milestones: Targets to help track progress.

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.