A statement of work (SOW) is a document that outlines the specific tasks, deliverables, and requirements of a project. It is a legally binding agreement that governs the projects scope, timeline, resources, and other essential aspects. The SOW is a powerful tool for businesses, municipalities, and individuals looking to facilitate a working relationship with one another. It is often seen as an essential component of any contract because it sets out clear expectations for both customers and suppliers alike. Having a detailed plan in place can help to reduce unexpected costs or delays due to misunderstandings throughout the course of a project’s life cycle.

An SOW is usually contained in the governments solicitation (RFP or RFQ) and carried forward, as may be negotiated with the offeror, into the final contract. In federal solicitations and contracts, SOWs are inserted into Section C "Descriptions/Specifications" of the Uniform Contract Format, but may also be inserted as an attachment in Section J. In task orders, the SOW may simply be included among the terms and conditions of the order itself. The SOW is often supplemented by technical reference documents and attachments.

An SOW can be broken down into three main categories which can be defined as follows:

• Design/detail SOW: This category of SOW defines the exact requirements needed to complete a project. It tells the supplier exactly how to do the work and what processes to follow.
• Level of effort SOW: This SOW is used for any kind of service. In a very general way, it details work hours and any material needed to perform the service over a given time.
• Performance-based SOW: A performance-based SOW clearly lays out the project’s purpose, resources that will be provided, and deliverables that will be accomplished. But it does not provide details about how the work needs to be performed.

An SOW is created to keep everyone on the same page about deadlines, scope of work, and project expectations. It helps clients and vendors to stay aligned and reach their project goals together. A good SOW functions as both a contract agreement and a project management tool. It sets the tone and expectations for the project by defining the structure of a project’s workflow, giving clarity on who will be providing feedback on deliverables and who will sign off on the project.