A statement of work (SOW) is the document that says exactly what you'll deliver for a client, by when, for how much, and how the client accepts the work. It's the most useful page in any project: when a question comes up three weeks in, the answer should be in the SOW. Below is a template you can copy for agency, software or consulting work, what each section is for, and a filled-in example.
It's a practical template, not legal advice. Have a lawyer review your terms before you rely on them.
What is a statement of work?
A statement of work describes one project: the scope, the deliverables, the timeline, the price and the rules for changes. It turns the conversation you had while selling into something both sides sign.
It often sits next to a few other documents, and it's easy to mix them up:
| Document | What it covers | When you use it |
|---|---|---|
| Proposal | Why you, your approach, options and prices | Before the client says yes |
| Statement of work (SOW) | Exactly what you'll deliver, when, and for how much | When the client says yes to a project |
| Master services agreement (MSA) | Legal terms for the whole relationship: liability, payment terms, ownership | Once per client, with an SOW for each project |
| Service level agreement (SLA) | Ongoing service levels, such as response times | For support, hosting and managed services |
Small agencies often combine the proposal and the SOW in one document the client signs. That works, as long as the scope is as precise as in a real SOW. For ongoing service levels, see our guide to the service level agreement.
What to include in a statement of work
- Overview and objectives. Two or three sentences on why the project exists and what success looks like.
- Scope of work. The work you'll do, described as activities.
- Deliverables. What the client receives, described as things you can point to: "a 7-page website", "a help center with 25 articles".
- Out of scope. What you won't do. This section prevents more arguments than any other.
- Timeline and milestones. Key dates, ideally written as "X business days after the client approves Y", so delays on their side move your dates too.
- Roles and responsibilities. Who does what on both sides, including what the client must provide and by when.
- Assumptions. What you're counting on: content from the client, one round of combined feedback, access in the first week.
- Acceptance. How a deliverable gets approved, how long the client has to review it, and what happens if they don't answer.
- Price and payment schedule. Fixed fee, time and materials or retainer, and when each payment is due.
- Change requests. How new requests get estimated, approved and billed.
- Signatures. Names, titles and dates.
Statement of work template
Copy this into your document tool and replace the brackets.
STATEMENT OF WORK
Project: [Project name]
Client: [Client company], [contact name, title]
Provider: [Your company], [contact name, title]
Date: [Date] SOW number: [001] Governed by: [MSA dated ..., if any]
1. OVERVIEW
[Two or three sentences: the client's situation, the goal of this project, and how success will be measured.]
2. SCOPE OF WORK
The Provider will:
- [Activity 1]
- [Activity 2]
- [Activity 3]
3. DELIVERABLES
- [Deliverable 1, with a short description and its format]
- [Deliverable 2]
- [Deliverable 3]
4. OUT OF SCOPE
- [Work that is not included, e.g. photography, paid ads, maintenance after launch]
Anything not listed in sections 2 and 3 is out of scope and follows the change request process.
5. TIMELINE AND MILESTONES
Milestone 1: [Deliverable], [X business days after the kickoff]
Milestone 2: [Deliverable], [X business days after Milestone 1 is approved]
Milestone 3: [Deliverable], [date or relative date]
6. ROLES AND RESPONSIBILITIES
Provider: [project lead, team members and what each one owns]
Client: [approver and contacts], who will provide [content, access, feedback] by [dates]
7. ASSUMPTIONS
- [The Client provides all content by ...]
- [Feedback comes as one combined list per round, within 5 business days]
- [Up to 2 rounds of revisions per deliverable]
8. ACCEPTANCE
The Client reviews each deliverable within [5] business days and either approves it or sends one combined list of changes. A deliverable with no answer after [5] business days is considered approved.
9. PRICE AND PAYMENT
Fee: [$X fixed fee / $X per hour, estimated at X hours / $X per month]
Schedule: [40% at signature, 30% at Milestone 2, 30% at final delivery]
Invoices are due [15] days after the invoice date.
10. CHANGE REQUESTS
Requests outside this SOW are estimated in writing within [2] business days. Work starts once the Client approves the estimate, and the timeline moves accordingly.
11. SIGNATURES
Client: ____________________ Name, title, date
Provider: ____________________ Name, title, date
Statement of work example
Here's how a small agency might fill in the key sections. The companies are made up.
Project: New website, help center and website chat for Brightline Software Client: Brightline Software, a 12-person company that sells inventory software to restaurants Provider: Northwind Studio
Overview. Brightline's website hasn't changed in four years, and the support team answers the same questions by email every day. This project launches a new website, a help center with the most common answers, and a chat on the website that answers from the help center. Success means fewer repeat support emails and more demo requests from the website within 60 days of launch.
Deliverables
- A 7-page website: home, product, pricing, about, contact, blog and a demo request page.
- A help center with 25 articles written from Brightline's top support questions, in English and French.
- A website chat that answers from the help center and hands the conversation to the support team.
- A recorded 60-minute training session for the support team.
Out of scope: new product screenshots and photography, paid ads, blog posts, and maintenance after launch (offered as a monthly retainer).
Timeline
- Milestone 1: sitemap and design direction, 10 business days after the kickoff.
- Milestone 2: website and help center ready for review, 15 business days after Milestone 1 is approved.
- Milestone 3: chat live and training delivered, 5 business days after Milestone 2 is approved.
Price: $18,000 fixed fee: 40% at signature ($7,200), 30% at Milestone 2 ($5,400) and 30% at launch ($5,400).
Assumptions: Brightline sends its 25 most common support questions and their answers in the first week. One combined round of feedback per milestone, plus one final round.
Pricing models for an SOW
- Fixed fee: one price for the defined deliverables. Clear for the client, but the risk of underestimating is yours. Works when the scope is well known.
- Time and materials: an hourly or daily rate with an estimate. Fair when the scope will change; agree on a cap if the client needs a ceiling.
- Milestone-based: payments tied to approved milestones. Keeps cash coming in on long projects.
- Retainer: a monthly fee for an agreed amount of work. Common after launch, for maintenance and improvements. See recurring revenue for agencies.
For help setting the number, see how to price custom software.
Tips for writing a statement of work
- Write deliverables you can count. "Up to 25 help articles" beats "help center content".
- Define done. What does an approved deliverable look like?
- Limit revision rounds, and say what counts as one round.
- Tie dates to approvals, not to calendar days, so the client's delays don't become yours.
- Put the client's responsibilities in writing, with dates.
- Keep it short. Two to five pages is plenty for most projects. Long legal terms belong in the MSA.
From signed SOW to running project
Once the SOW is signed, the work is keeping the project true to it: deliverables become tasks, milestones become invoices, and change requests get approved before anyone starts.
In Alori, the all-in-one app, that happens next to the client's record:
- Send the price as a quote the client accepts and signs online, on any device, with an automatic follow-up when they go quiet. See quotes.
- Turn the deliverables into a project with tasks, owners and dates.
- Record the kickoff, with a transcript, a summary and next steps turned into tasks.
- Invoice each milestone with a pay-by-card link, synced with QuickBooks Online.
- Log change requests as tasks, and send each one as a quote to sign before work starts.
Long-form proposals and contracts, signed online, are coming soon. For the first two weeks after the signature, follow our client onboarding process.
Frequently asked questions
Who writes the statement of work?
Usually the provider, because they know what the work takes. The client reviews it, asks for changes, and both sides sign. Some large clients send their own SOW template; fill it in with the same care.
Is a statement of work legally binding?
A signed SOW is generally part of the agreement between the two parties, especially when it refers to a master services agreement. Whether and how it can be enforced depends on its wording and on local law, so have a lawyer review your template.
What's the difference between a statement of work and a scope of work?
The scope of work is one section of the statement of work: the description of the work itself. The statement of work also covers the deliverables, timeline, price, acceptance and changes.
How detailed should a statement of work be?
Detailed enough that someone who wasn't part of the sales conversation can tell what's included and what isn't. For most agency projects, that's two to five pages.
Can you change a statement of work after it's signed?
Yes, through the change request process written in it. Bigger changes get a short amendment or a new SOW, signed by both sides.
Turn the SOW into a project, not a PDF
Send the quote, run the project and invoice the milestones from one app. Alori is free to start, with no credit card. Build your app now.
