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A SOW is typically used when the task is well-known and can be described in specific terms. Statement of Objective (SOO) and Performance Work Statement (PWS) emphasize performance-based concepts such as desired service outcomes and performance standards.

Follow these eight steps as you create your SOW: Introduce the project. ... Summarize the objectives. ... Describe the actual scope of work. ... Detail the project tasks. ... State the project schedule. ... List the project deliverables. ... Specify an adoption plan. ... State project management roles.

A statement of work is legally binding, but it is not the final, formal contract signed at the end of the contracting process. It can be thought of as the formal foundation of a final contract.

It's also important for both parties to sign off on an SOW before any work begins as this makes it legally binding on both sides. Failure to do so could mean that one party has no legal recourse should things go wrong further down the line.

The SOW is agreed upon and signed. Now, the statement of work document works as both the formal document and the practical action plan when initiating and implementing the project. It ensures that both parties have established a common ground and have an understanding about the full life cycle of the project.

Along with a proof of acceptance, a SOW could be considered a standalone contract. However, in practice, this isn't usually the case. Most circumstances where a SOW is separate from a contract occur when the relationship between businesses is governed by a master service agreement (MSA).

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.