Statement of Work (SOW)
A detailed document that defines project scope, deliverables, timelines, milestones, and terms. A well-written SOW prevents scope creep and sets clear expectations for both agency and client.
Definition
Related Terms
Scope Creep
The gradual expansion of project requirements beyond the original agreement, often without corresponding budget or timeline adjustments. Scope creep is one of the leading causes of project overruns and profit erosion.
Change Order
A formal document that modifies the original project agreement when scope, timeline, or budget changes. Change orders protect agencies from scope creep by making scope changes visible and billable.
Project Kickoff
The initial meeting or phase that launches a project, aligns stakeholders, establishes processes, and sets expectations. Effective kickoffs set projects up for success by ensuring everyone starts aligned.
Related Resources
Frequently Asked Questions
What should be included in a Statement of Work?
A SOW should include project objectives, detailed scope (with inclusions and exclusions), specific deliverables with formats, timeline and milestones, roles and responsibilities, acceptance criteria, assumptions and dependencies, change management process, and terms and conditions.
How detailed should a SOW be?
SOWs should be detailed enough to prevent ambiguity but flexible enough for reasonable adjustments. Complexity varies by project—simple projects might need 5 pages, while complex engagements might require 50+ pages. The key is clarity and completeness.
Do you need a SOW for every project?
Yes, even small projects benefit from clear SOW documentation. It sets expectations, prevents misunderstandings, and provides a reference point for scope questions. Many agencies use templates they customize for each project to maintain consistency.
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