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Statement of work

A statement of work (SoW) is a document that describes the products or services one party will provide another. It typically outlines:

  • What is to be delivered
  • How it is to be delivered
  • When it is to be delivered
  • The quality standards for delivery

A SoW is not legally binding. As such, it is often accompanied by a formal legal contract that outlines the specifics of an agreement such as the parties, terms, reporting requirements, payment obligations, etc.

When a SoW is not accompanied by a legally binding contract, it is important for both parties to know and understand each other well so the transaction can be completed smoothly.