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What is Statement of Work in Project Management?

What is statement of work in project management? Statement of Work (or SOW) is a formal document that defines the entire scope of the work involved for a vendor and clarifies deliverables, costs, and timeline. It is needed in situations where a project involves vendors and external contributors in addition to the internal project team. You usually create a SOW as part of a bid document or part of a contract.

It is vital that the SOW is clear to all stakeholders in order to clarify the metrics for success and to avoid disputes involving deliverables, budgets, or timelines.

The statement of work should include:

  • All deliverables and due dates.
  • The individual tasks that lead to the deliverable, and who these tasks are assigned to.
  • The resources needed for the project including facilities, equipment, and QA procedures.
  • The governance process for the project.
  • Costs and deadlines for payment.

Other terms related to statement of work are project charter, and project objectives.

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