What is an SOW?

Parties decide to write an SOW, short for statement of work, when they intend to document the objectives of a given project. It is typically used in outsourcing or freelancing contracts that are expected to be more complex or long-term. Within the SOW, there is a ‘scope of work’ section (also abbreviated as SOW). Not to be confused with a statement of work, the latter details how parties aim to achieve these common objectives. ‍

When do I need an SOW?

Let’s say you’re hiring a freelancer. Why would you need an SOW alongside a freelancer agreement? A freelancer agreement typically covers the overall legal relationship between the freelancer and the client—addressing issues like payment terms, intellectual property rights, confidentiality, and dispute resolution. A Statement of Work (SOW), on the other hand, focuses specifically on the detailed aspects of a particular project or phase within that broader relationship. It zooms in on what the project aims to achieve, in a way that would make the original freelancer agreement lengthy. As such, it can be referenced as an addendum. 

What does a statement of work address?

The general structure of a statement of work will cover the following sections. We’ve briefly described them below. For the full version, start a free trial in Docfield and use our free template!

• Introduction - short introduction of the parties and purpose.
• Purpose - details the purpose of the project.
• Scope - contains an explanation of how the work will be completed, the expected tasks, tools, and duration.
• Location - where the work can be completed, such as remotely or in office.
• Tasks - a clearer breakdown and description of the tasks explained in the scope section, usually in bulletpoints. 
• Milestones - defining the objectives as milestones to guage whether the project is on track and according to expectation. 
• Deliverables - a description of what the freelancer is due to deliver, and in which format. 
• Schedule - establishes a general timeline including the due dates for deliverables
• Standards & Testing - in case of specific industry standards or testing that should be completed before, during or after the project.
• Success - defines when the project can be considered successful. Could be relevant for bonus or retainer clauses.
• Requirements - details the equipment needed to complete the project as well as eventual formal requirements, such as specific degrees or qualifications
• Payments - notes payment schedule, terms, and amounts. 
• Close - details how the project can be terminated or completed, and any follow-on actions.

Docfield CLM can help!

Docfield is a contract lifecycle management (CLM) tool that helps users create, negotiate, sign, and store all their legal documents at unprecedented speed. You can speak to an expert today or simply start a free trial and access our free statement of work template. Fully customisable to your needs, you can turnaround this document faster than anyone!

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