Statement of Work

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Definition: Statement of Work

A Statement of Work is a legally bound contractual agreement which basically contains the entire framework of the project and a list of all services agreed to be provided to the client by the vendor.

This framework contains the names of all the parties involved, all processes on which work is agreed upon, the specification targets to be met, the target dates for every milestone reached during the process and also all the remuneration details as agreed upon.

It is a one page document encompassing all the aspects related to the relationship between a vendor and the client and their service level agreements. If any deviations are found during any of the processes, either party can claim compensation for breach of contract.

For example: A car company has planned to increase its scale of operations and now planning to build a new factory. The contract of building that factory has been given to one of the major players into construction. They have mutually agreed upon certain guidelines and expectations as far as work is concerned and documented it into a one page document, this document which contains all data pertaining to the project is called the SOW (Statement of Work).


Hence, this concludes the definition of Statement of Work along with its overview.

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