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A statement of work (SOW) is a legally binding document and an essential component of a client-vendor contract.

It ensures the project follows expectations and agreed-upon guidelines. It also summarizes what’s within and out of scope to mitigate scope creep, and what the project cost covers, among other things.

A SOW is a required project planning document and, therefore, must include details such as expected results, work schedules, invoicing schedules, work process and so on.

This is an extremely important document normally used in contract and project management. It’s viewed as a legal working agreement between two parties such as clients, buyers, agencies, vendors, contractors or government agencies.

Business contracts state the terms and conditions of any business transaction, including product sales and delivery of services. This helps the parties involved to avoid any type of misunderstanding that may arise in the absence of a written contract.

A SOW typically includes sections regarding matters such as:

  • Schedule
  • Tasks
  • Expected outcomes
  • Scope of work
  • Deliverables
  • Payments
  • Project objectives

A statement of work sets the ground rules for all parties of a project, especially when third-party vendors become involved. The SOW becomes especially important during the implementation, monitoring and evaluation phases of the project cycle.

Want to learn more? Tonex offers SOW Writing Training, a 2-day course that provides participants with concepts, tools, approaches, and configuration of Statement of Work.

Additionally, Tonex offers dozens of different courses in a dozen categories in Leadership training. There are over 50 leadership courses in our Business Skills category alone. 

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