Statement of Work

August 22, 2025
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What is a Statement of Work?

A Statement of Work is a formal document that outlines the specific tasks, deliverables, and timelines agreed upon for a project. It serves as a foundational agreement between the client and the service provider or contractor. This document clearly defines the scope of work, responsibilities, performance expectations, and payment terms. The purpose is to ensure that all parties involved understand what they need to do, who will do it, and by when. It acts as both a planning tool and a reference point throughout the life of a project.

A well-written Statement of Work reduces misunderstandings and helps manage expectations by describing what success looks like in measurable terms. It can apply to various types of projects, including construction, IT development, consulting, and marketing campaigns. Although commonly used in contract-based relationships, internal teams may also use this document to clarify objectives and timelines.

Key Points

  • Clearly defines the scope of work, including tasks, timelines, and deliverables
  • Serves as a legally binding agreement in many contractor-client relationships
  • Helps manage stakeholder expectations and reduces project risk
  • Often includes project milestones, approval processes, and change management procedures
  • Provides a point of reference for resolving disputes or questions during the project

Related Terms

  • A project charter often precedes the Statement of Work and outlines the high-level objectives and stakeholders involved.
  • A work breakdown structure can be developed using the tasks and deliverables listed in the Statement of Work.
  • A project schedule is typically based on the timelines and milestones set in the Statement of Work.
  • A change request may be needed when updates to the Statement of Work become necessary during a project.
  • A project scope statement provides additional detail that supports the broader descriptions found in the Statement of Work.

Statement of Work: Example

An organization hires a software development firm to create a custom inventory management system. The Statement of Work includes a description of the software functions, a timeline of 16 weeks, defined milestones such as prototype delivery and testing phases, and a payment schedule tied to each deliverable. It also outlines the roles of the development team, the client’s responsibilities, and the approval process for any changes to the system’s design.

Statement of Work: Best Practices

  • Use clear, concise language to avoid ambiguity
  • Include detailed timelines and deliverables to support accountability
  • Involve all stakeholders during the drafting process to gain alignment
  • Update the document as changes occur and ensure to document the approvals
  • Store the document in an accessible location for ongoing reference throughout the project

Additional Resources

Statement of Work - Project Management: A Systems Approach to Planning, Scheduling, and Controlling     Statement of Work - A Guide to the Project Management Body of Knowledge (PMBOK Guide)

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