SOW (Statement of Work)
A statement of work (SOW) is a legally binding document that
outlines the details of a project, including the work to be done, the timeline,
and the cost. It's typically created between a client and a vendor and ensures that all parties involved have a clear understanding of their
responsibilities and expectations.
A SOW can include the following details:
Project deliverables, timeline, work location, payment terms
and conditions, resources, special requirements, expected outcomes, and project
team.
A SOW is essential because it forms the basis
for a contract and can affect the project's success or failure. Ensuring the SOW is clearly defined, unbiased, and
contractually sound is essential.
A SOW differs from a scope of work, while another document provides a framework for project success. While both documents
are abbreviated as SOW, they are separate documents that complement each
other.