What is a Statement of Work? Definition & Examples

What is a Statement of Work? Definition & Examples

The Statement of Work (SOW) is a legally binding document that outlines all the work management aspects of a project. It is an extremely detailed work contract that defines the terms and conditions agreed upon between parties and lays the groundwork for the project plan. It is one of the first documents you'll create to lay out the entire landscape of the project before you plan and execute. It can be daunting, so let's break it down into more digestible parts. The purpose of a Statement of Work (SOW) is to provide a detailed overview of the project scope and to share project requirements, acceptance criteria and payment terms with stakeholders.

It is also helpful to project managers, as it provides a structure on which the project plan can be built on. When building a schedule, it is important to use project management software to organize tasks and resources and create a work breakdown structure (WBS). An SOW can be broken down into categories, which can be defined as follows.