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 agencies: 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
- 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.
What is a statement of work (SOW)?
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.
What is the difference between an SOW and an MSA?
The MSA sets the standing legal terms once; each SOW sits under it and defines one specific project's scope, deliverables, timeline and price.
What should a statement of work include?
Scope and deliverables, acceptance criteria, timeline and milestones, fees and payment schedule, assumptions, and what is explicitly out of scope.
Is a statement of work legally binding?
Yes - once signed it is a binding contract (or a binding addendum to an MSA), which is exactly why clear scope and exclusions matter so much.