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The SOW works as reference material during the project. It lists the central purpose of the project and the work that needs to be completed and delivered by the end of the project. This is all agreed upon through signing the SOW.

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).

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.

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.

Who writes the statement of work? Like most project management documents, SoWs are best written collaboratively. However, there are two main parties involved: the client or service provider and the company. SoWs need to be approved by two parties before work on your project really begins.

Purpose of the project. Scope of work being performed. Location of the project, project length, and any work requirements. Expected deadlines and deliverables.

Statement of Work Format Introduction. The introduction is where you identify the type of work to be done, whether it's performing a service or creating a product. ... Objectives/Purpose. ... Scope of Work. ... Requirements and Tasks. ... Period of Performance. ... Place of Performance. ... Resources and Testing. ... Deliverables and Schedule/Timeline.