statement of work (sow)
Definition
A statement of work is a written document that spells out exactly what one business will do for another, including the specific tasks, deliverables, timeline, and sometimes the price. Think of it as the detailed blueprint for a project that both parties sign off on before work begins. It removes the guesswork by putting everyone's expectations in writing.
Example
If you hire a web designer to build your e-commerce site, the SOW would specify that they will create 10 pages, deliver a mobile-friendly design, complete the work within 60 days, and provide two rounds of revisions.
Watch Out
A vague SOW is one of the biggest sources of disputes between businesses, so the more specific and detailed you make it, the better protected you are if something goes wrong.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.