Statements of work are typically used in project management. They include the header, project overview, services & deliverables, scope & assumptions, schedule, costs & budget, signatures, delivery & acceptance. If a company is planning on hiring a contractor contingent on work should preferably use a statement of work. This helps in the overall assumptions and deliverables of a project. It helps the contractor and the company to define expectations and the deliverables on those expectations and stay on track in terms of time and budget.

There are different versions of an SOW but typically they include the items mentioned above. Let’s take a look at exactly what each includes.

Header- This includes the standard contract language.

Purpose- Why is this project being completed?

Project Overview- The overall view of the project. What happens if someone gets picked up midway through the project? What will occur if additional changes need to be made?

Services & Deliverables- Defines what is going to complete by when.

Scope & Assumptions- What will be done and how you came about producing the final product?

Schedule- Timelines with specific dates as to when the project will be completed.

Costs & Budget- What is the budget? What are the fixed costs, hard costs, overages?

Signatures- Signatures of all parties included.

Deliver & Acceptable- How will the final product be completed? How are you going to sign off?

Having an SOW is good practice for any business and it holds the worker accountable for any changes or deviations on the project.