Free SoW Templates — Create a Statement of Work with a Few Clicks

A Statement of Work (SoW) is a legal document created by a contractor or project manager that outlines a specific project’s goals, requirements, and tasks. It also includes information about what types of work have to be done, when, how, the expected schedule, deliverables, and pricing. It is a standard tool for onboarding and managing external and independent contractors.

Being legally binding, a statement of work brings transparency into business between contractors and clients. Negotiating SoW provides an opportunity to discuss the project in detail beforehand, avoiding misunderstandings or ambiguous words. A statement of work is protected by law, and the signing organizations take responsibility for their role and commitment to the project. SoW template ensures a unified framework for managing multiple vendors or suppliers, simplifying negotiation and communication with them.

The content of each tailored statement of work can vary. Here are the recommended paragraphs that SoW should cover:

• Project’s objectives
• Scope of work
• Milestones and tasks
• Project’s timeline
• Expected outcomes
• Deliverables
• Payment terms
• Specific requirements and conditions

The statement of work can be pretty brief or enlarged by additional sections such as special terms, assumptions, exclusions, and post-project support. An ultimate goal is to describe the project with sufficient details. So you ensure the project’s feasibility, and your customer approves it.

A statement of work enables service providers to demonstrate their expertise in the industry, understanding of the client’s business, and commitment to work. A strong SoW should sufficiently describe the project and bring transparency to its roadmap. It is a profound background for lasting business relations and a way to protect joint interests and responsibilities legally.

How detailed each section of a statement of work should depend on your previous track record with a particular client and what is covered by the related agreements. The bare minimum to include in SoW is the project’s milestones, service or product details, terms, and pricing.

The best time to start work on a statement of work is after you have perceived the client’s business need and gathered enough details to address the challenge effectively. Once you discussed the project with your team, proved its feasibility, and obtained a precise work estimation, you can finalize the SoW and send it to your customer. A good rule of thumb is making a rough estimate as early as possible and getting the client’s approval before working on a detailed document.

An SoW is rarely negotiated alone unless you have other necessary documents already signed with a client. Usually, it goes in a bundle with the following legal documents:

1. Non-disclosure agreement (NDA) — a contract that outlines confidential information and restricts it from being shared
2. Master services agreement (MSA) — a framework contract that defines the essential terms and conditions that will govern future cooperation and agreements.
3. Invoice — a legal document issued by a seller to a buyer to collect a respective payment.
4. Business quote — a document that contains a list of products or services, as well as respective prices and conditions.
5. Data protection agreement (DPA) — a legal document that regulates the terms and conditions of personal data processing, like name, email, phone number, etc.