River
Y CombinatorBacked by Y Combinator
Free document

Statement of Work (SOW)

Common Paper's statement of work for one project under a signed professional services agreement: services, deliverables, schedule, fees and acceptance.

Free download  ·  No account needed

Want it written around your situation? Describe it in the Founder Document Studio for Startups.

About this document

A statement of work (SOW) is the project document that sets out exactly what a provider will do for a customer, what it will deliver, by when and for how much. This is Common Paper's Statement of Work, shown word for word as Common Paper publishes it.

Use the statement of work for each new project under a Professional Services Agreement you have already signed with the customer. For the first project, the Professional Services Agreement includes its own statement of work. Describe the services and deliverables specifically enough that both sides can tell when the work is done, because the statement of work controls over the agreement where the two conflict.

How to fill it in

  1. Link it to the agreement. Number the SOW and enter the effective date of the Professional Services Agreement key terms and both companies' names exactly as they appear there.
  2. Define services and deliverables. Describe the services, key people, timeline and milestones, then list the deliverables the customer will own. Delete the deliverables row if there are none.
  3. Set fees and acceptance. Fill in the fees and payment terms, how the customer accepts the work, and the customer's own obligations, such as naming a single point of contact.
  4. Delete the notes and sign. Remove the gray drafting notes and unused rows, then have a person authorized at each company sign the SOW.
Statement of Work (SOW)

SOW

Professional Services Agreement

SOW

The key business terms of this SOW are as follows:

SOW and Agreement

This SOW [no. XX] (“SOW”) incorporates the Agreement with a Key Terms Effective Date of [ enter Effective Date of Key Terms ] between [ enter official name of Provider on Key Terms ] and [ enter official name of Customer on Key Terms ]. If there is any inconsistency between this SOW and the Agreement, this SOW will control.

Services

[ Enter a description of the Services to be performed under this SOW. Include details such as key individuals, overall project timeline, milestones, etc. ]

Deliverables

[Drafting note: Optional variable. If the Services include creating Deliverables, define the Deliverables here. If the SOW does not include Deliverables, delete this entire row.]

The Deliverables are: [define the Deliverables that will be owned by Customer under this SOW.]

[Drafting note: Use the options below to add details about Deliverables. These are all optional and can be removed if not applicable. The first option allows Deliverables to include work product. The second option allows you to attach specifications to the SOW. The third option sets up rejection and resubmission timeframes.]

[ ] In addition to completed projects, Deliverables include in-progress but not complete drafts or components of Deliverables and their associated intellectual property.

[ ] Deliverables will meet the attached specifications.

[ ] Deliverables are subject to the acceptance process in Section 1.4 with the following details:

Rejection Period: [ # ] [days, weeks, months] from Deliverable submission

Resubmission Period: [ # ] [days, weeks, months] from notice of rejection

Time of Assignment

[Drafting note: If the Services include Deliverables, pick when IP assignment happens. Delete the one that doesn't apply.]

( ) Customer owns Deliverables as they are created.

( ) Customer owns Deliverables upon payment of associated Fees.

Third-Party Materials

[Drafting note: If the Services include Deliverables, pick whether Third-Party Materials can be included in the Deliverables. Delete the one that doesn't apply.]

( ) No Third-Party Materials will be incorporated into the Deliverables.

( ) Third-Party Materials will be incorporated in the Deliverables.

[ ] Provider will procure Third-Party Materials.

[ ] Customer will procure Third-Party Materials.

Fees

[ Describe fees, whether hourly, by project, by milestone, etc. Also include any pass-through or fractional charges such as for tooling or third-party license fees. ]

[Drafting note: Delete the travel and expense option if not applicable.]

[ ] Travel and expenses: [Describe or attach travel and expense policy.]

Payment Period

Time frame for Customer to pay invoices

[ Fill in payment terms, e.g., 30 days from Customer’s receipt of invoice ]

Invoice Period

How frequently Provider sends invoices

[ Fill in cadence of sending invoices, e.g., month, quarter, upon acceptance, after each milestone, etc. ]

SOW Date

The date this SOW begins

[ x ] Date of last signature on this Cover Page

[ ] [ Fill in custom SOW Date ]

SOW Term

How long this SOW lasts

[Drafting note: Choose and customize one and delete the other.]

The SOW Term begins on the SOW Date and ends:

[ x ] [ # ] [ days, weeks, months, year ] after the SOW Date

[ ] [ fill in custom end date ]

Customer Obligations

[ Fill in Customer's Obligations, e.g., identifying a single point of contact, geographic limitations on use of Deliverables, etc. ]

Other Changes to Standard Terms

Changes that apply for this SOW only

[Drafting note: Optional variable. If no changes to the Standard Terms, delete this entire row.]

[Fill in]

By signing this Cover Page, each party agrees to enter into this SOW as of the SOW Date.

PROVIDER: [official company name]

CUSTOMER: [official company name]

Signature

Print Name

Title

Notice Address

Use email or postal address

Date

Page 1 of 2572 words

Frequently asked questions

What should a statement of work include?

A statement of work should include the services, the deliverables, the schedule and milestones, the fees and payment terms, how the work is accepted, and what the customer must provide. Common Paper's form has a row for each, plus a row for changes that apply only to that project.

Is a statement of work a contract?

Yes, once both sides sign it, but usually as part of a larger agreement. Common Paper's SOW incorporates a signed Professional Services Agreement, which supplies the legal terms. Without that agreement, the SOW alone leaves out terms such as liability and confidentiality.

What is the difference between a statement of work and a scope of work?

A scope of work describes only the tasks and deliverables. A statement of work is the fuller document: it includes the scope plus the schedule, fees, acceptance and each side's obligations. In practice people often use the two terms loosely for the same document.