Statement of work (SOW)
also known as SOW · scope of work
A formal document defining the scope, deliverables, timeline and payment for a specific project between an agency and client. Often sits under a broader MSA.
For example, before a six-week website redesign, the agency issues a SOW that lists the exact pages to be designed, the two rounds of revisions included, the launch date, and the $18,000 fee split across three milestones. Both sides sign it, so there is a single agreed reference for what 'done' looks like.
Why it matters to your firm: a clear SOW is your first line of defence against scope creep and payment disputes. It sets expectations in writing, anchors every later change order, and gives your team an unambiguous definition of what was actually sold.
What a strong SOW includes
- Scope and specific deliverables
- Acceptance criteria for each deliverable
- Timeline and milestones
- Fees and payment schedule
- Assumptions and dependencies
- What is explicitly out of scope
Common mistakes
- Listing the deliverables but not the exclusions.
- Including no acceptance criteria, so 'done' stays subjective.
- Reusing an old SOW without re-scoping it for the new project.