Neural Project InstituteProject management certification for the AI era

Project Management guide · Planning and scope

Statement of Work (SOW): What to Include, With Example

A statement of work (SOW) describes the work a supplier or team will perform: what will be delivered, when, to what standard, and under what terms. It is common in contracts and procurement.

Key takeaways

  • An SOW defines work, deliverables, schedule and terms.
  • It is common in contracts and procurement.
  • Be specific and define acceptance criteria.

What to include

SectionContent
PurposeWhy the work is needed
Scope of workActivities and boundaries, including exclusions
DeliverablesOutputs with acceptance criteria
ScheduleMilestones and deadlines
Location and resourcesWhere work happens; who provides what
StandardsQuality, security and compliance requirements
AcceptanceHow deliverables are reviewed and accepted
Payment termsFixed price, time and materials, or milestones
Assumptions and responsibilitiesWhat each party must do

Types of SOW

  • Design or detail SOW: specifies exactly how work is done.
  • Level of effort SOW: buys a quantity of time or services.
  • Performance-based SOW: specifies outcomes and lets the supplier choose the method.

Tips

  • Be specific; vague SOWs cause disputes.
  • List exclusions explicitly.
  • Define acceptance criteria for every deliverable.
  • Align with the contract and procurement plan.

Free templates for this topic

Browse all templates

Frequently asked questions

What is an SOW?

A document describing the work, deliverables, schedule and terms for a project or contract.

Who writes the SOW?

Usually the buyer, sometimes with the supplier.

Is an SOW a contract?

It is often part of or attached to a contract.

What is the difference between an SOW and a project charter?

The charter authorises a project internally; the SOW defines work, often for a supplier.

What is the difference between an SOW and a scope statement?

Both describe scope; the SOW adds commercial terms and responsibilities.

How long should an SOW be?

Long enough to remove ambiguity; often a few pages to dozens.

What is a performance-based SOW?

One that specifies required outcomes rather than methods.

Can an SOW change?

Yes, through a formal contract change process.

What happens if the SOW is vague?

Disputes over scope, cost and acceptance become likely.

Is an SOW needed for internal projects?

Sometimes, especially when departments charge each other for services.