Statement of Work (SOW): A Plain-English Guide

If a Master Service Agreement (MSA) is the rulebook, then the Statement of Work (SOW) is the playbook. The MSA sets the long-term terms of your relationship. Each SOW plugs into that agreement to define the details of one specific project.

The SOW answers the big questions: What are we building? When will it be done? How much will it cost? Who is responsible for what?

By the end of this guide, you’ll understand exactly how SOWs work, why they’re critical for small businesses, and how they protect you from scope creep, missed deadlines, and budget surprises.

What Is a Statement of Work?

A Statement of Work is a project-specific contract that defines scope, deliverables, milestones, timelines, and costs—always under the framework of an MSA.

Example: You run a web design business. Your MSA covers confidentiality and ownership. For each client project, you create a new SOW that says: “Build a 5-page responsive website,” “Delivery by May 15,” “$5,000 total, 50% upfront, 50% on launch.”

👉 Learn more in our MSA vs SOW guide.

When Do You Need One?

You should use an SOW when:

• You already have a signed Master Service Agreement.
• You’re starting a new project with an existing client.
• You want to avoid disputes about what’s included in the project.
• You want payment tied to project milestones.
• You need clarity on deliverables, acceptance criteria, and deadlines.

Example: A marketing agency signs an MSA in January. Each campaign—Q1 ads, Q2 social, Q3 video—gets its own SOW. That way, everything is clear, repeatable, and enforceable.

👉 See why SOWs can save you headaches and your budget.

Key Clauses — In Real Life

Scope of Work

Example: “Logo design” might mean 1 draft or 5. Spell it out to avoid endless revisions.

Deliverables

Example: Instead of “marketing campaign,” specify: “3 blog posts, 5 graphics, 1 email sequence.”

Timelines & Milestones

Example: “Wireframes due March 10, final site live by April 30.” Clear milestones keep both sides accountable.

Payment Schedule

Example: “30% deposit, 40% at first draft, 30% on delivery.” Ties money to progress.

Acceptance Criteria

Example: “Client has 5 business days to review and provide revisions; silence counts as acceptance.”

Responsibilities

Example: “Client provides brand assets by Feb 5.” Missing inputs delay projects—put it in writing.

Common Mistakes This Agreement Prevents

• Scope creep: “One more revision” balloons into unpaid weeks. A detailed scope stops this.
• Payment fights: Client says “work wasn’t done.” Milestone billing protects you.
• Missed deadlines: Written timelines keep both sides accountable.
• Ownership confusion: The SOW references the MSA, which already transfers IP at payment.

SOW vs Other Agreements

An SOW is not a standalone contract—it lives under your MSA. Think of the MSA as the rulebook and the SOW as the playbook. Together, they prevent disputes and save time.

👉 Related: See SOW examples & templates.

How to Create One

Writing an SOW doesn’t need to be intimidating. Start simple:

1. Write the project scope in plain English.
2. List deliverables clearly.
3. Set milestones and deadlines.
4. Define your payment schedule.
5. Add acceptance criteria.
6. Reference your signed MSA.

👉 Save time: Use our lawyer-drafted SOW template to build yours in minutes.