Statement of work (SOW)
Also called SOW, scope of work.
The document that sets out what a supplier will deliver, by when, for how much, and how the work will be accepted.
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What it is.
A SOW usually sits under a master services agreement, which holds the legal terms. The SOW holds the project: goals, scope and what is out of scope, deliverables, milestones and dates, team and roles, pricing model, assumptions, and how each deliverable is accepted.
One master agreement can have many SOWs over time, one per project or phase.
Why it matters
The SOW is what both sides go back to when they disagree. A clear one prevents scope creep, makes change requests easy to price, and lets either side check progress against something written.
In a product build
For an OceanLab product build the SOW states the pricing model: paid per milestone on outcomes, or hourly at $30 to $50 an hour by role and seniority.
Common mistakes.
- 01
No out-of-scope list, so every grey area becomes an argument.
- 02
Deliverables without acceptance criteria or review windows.
- 03
Assumptions left unwritten, such as who provides content, test data or API access.
Work it out with a tool.
Related terms.
- Change requestA written request to change the agreed scope of a project, with its effect on cost and timeline agreed before work starts.
- MilestoneA checkpoint in a project where an agreed piece of work is delivered, checked and, often, paid for.
- Scope creepThe slow growth of what a project must deliver, without a matching change to its time or budget.
- Acceptance criteriaThe testable conditions a feature must meet before the person who asked for it accepts it as done.
Guides and pages
Browse the full glossary or read answers to common questions.
