What is a statement of work?
A statement of work (SOW) is the formal document that authorizes a project. It spells out the objectives, the scope and deliverables, the schedule, the payment terms, and the acceptance criteria — then both parties sign it. Where a lightweight scope of work is often enough for a small job, a statement of work is the contract-style version you want when the engagement is bigger or the client is more formal.
What to include in a statement of work
- Objectives — the business goal and what success looks like.
- Scope & deliverables — included work, itemized deliverables, and explicit exclusions.
- Timeline & milestones — phases, dates, and dependencies on client input.
- Payment terms — itemized pricing, the deposit to start, and the balance schedule.
- Acceptance criteria — how each deliverable is reviewed and signed off.
- Signatures — authorization from both parties, with a date and audit trail.
Why the acceptance section matters: clear acceptance criteria are how you get paid the balance without argument — everyone agreed in advance what "done" means.