Types of SOWs There are several different types of SOW documents available, each with its own advantages. The three main types of statement of work agreements are design, level of effort, and performance-based SOWs.

The Statement of Work or requirements description should clearly describe the work to be carried out, the objectives to be attained and the time frame. It should be: explicit about the client's requirements and the contractor's responsibilities so that questions of interpretation can be avoided.

Pitfalls in Creating a Statement of Work If the work statement is too vague, too broad, or too generic, it can leave room for multiple interpretations. This can create misunderstandings later in a project.

Also known as a scope of work, a statement of work (SOW) defines the scope of a project between a business and a client. Keep in mind that an SOW only covers the specifics of a project—it doesn't take the place of a contractor agreement that goes into details like NDAs and deliverable ownership.

The statement of work is an all-encompassing, detailed document outlining the goals, purpose, guidelines, deliverables, time requirements, costs, etc. The scope of work is one section within the SoW describing in detail the projected outcomes of the project and the specifics about the job done to hit those outcomes.

Each project requires a unique SOW that outlines the specifics of that engagement. That said, almost all SOWs will include seven elements: the Scope of Work, deliverables, time and resources, payment terms, client services, changes, and terms and conditions.

These are the steps you can take to create a simple, but well-defined statement of work. Introduce the project. ... Define the vision. ... Set the project requirements. ... Define the scope. ... Set the deadline of the project. ... Allocate key resources. ... Create the schedule. ... Specify the terms of payment and due dates.