What Is a Statement of Work (SOW)?

Written by Coursera Staff • Updated on

A statement of work is the first step in getting started on a new project. Learn about what should go into an SOW and how it differs from the scope of work.

[Featured Image] A project manager meets with a group to discuss their statement of work.

Key takeaways

A statement of work (SOW) is a formal document that serves as a contractual agreement between a vendor and a client, outlining the project's requirements.

  • An SOW serves as a legally binding agreement that governs the project’s scope, timeline, resources, and other essential aspects.

  • A statement of work and scope of work are related, but they are not the same thing. A scope of work is a specific section within the SOW.

  • You can learn more about the parts of the SOW, including milestones, timelines, and costs, to further your career.

Learn how you can write an effective statement of work. Then enroll in the IBM Project Manager Professional Certificate program, where, in as little as three months, you can learn skills to help you prepare a statement of work specific to information technology

What is a statement of work?

In project management, a statement of work (SOW) is a formal document that outlines the specific tasks, deliverables, and requirements of a project. It serves as a contractual agreement between a vendor and a client, providing a comprehensive description of the work to be performed. 

The SOW includes all the necessary information and terms and conditions to ensure both parties have a clear understanding of their roles, responsibilities, and expectations. It serves as a legally binding agreement that governs the project’s scope, timeline, resources, and other essential aspects. A clear statement of work should protect against any disputes and negotiations when the project is in motion.

Read more: The Triple Constraints of Project Management: Time, Scope, and Cost

Statement of work vs. scope of work

A statement of work and scope of work are related, but they are not the same thing. A scope of work is a specific section within the SOW that focuses on the detailed description of how the vendor will execute and deliver the work. It defines the specific tasks, activities, resources, and methodologies that will be employed to complete the project successfully. The scope of work provides clarity on the approach and specific requirements for the vendor to meet the client’s expectations.

How to write a statement of work: Components

While you can follow any format you choose when writing your statement of work, you should include some important components: 

Objectives

Clearly state your objectives. Think about why the project is happening and what you expect to achieve. It’s important to make objectives measurable so you know exactly when you achieve them. 

Scope of work 

Here is where you outline the work the vendor will undertake to achieve the project objectives. This section includes who will work on the project, what they will do, and the processes they will use. Details include tools and resources you will use and how you will report results and updates.

Milestones

Include milestones in your statement of work to show when you expect each deliverable. This helps ensure an understanding of when to expect completed tasks across the project life cycle. Often, delivery of these milestones corresponds with payment for that phase of the project. 

Timelines

A timeline is an estimate of the project duration and when to expect each milestone, deliverable, and payment. This is a flexible part of the document that is subject to change if you include specific dates, or it may span a set of dates to allow for flexibility. 

Costs

The costs section outlines overall project costs with breakdowns for any phases, along with costs for equipment, staffing, travel, and any other expenses. It includes details of how you will deliver payments and when. 

Signatures

Both parties sign and date the statement of work documents to signify agreement with the terms. 

Related terms

If you’re considering a career in project management or another area, subscribe to our LinkedIn newsletter, Career Chat, to learn more about various industries. Or, explore free digital resources to guide you.

Whether you want to develop a new skill, get comfortable with an in-demand technology, or advance your abilities, keep growing with a Coursera Plus subscription. You’ll get access to over 10,000 flexible courses.

Updated on
Written by:

Editorial Team

Coursera’s editorial team is comprised of highly experienced professional editors, writers, and fact...

This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.