What is Statement of Work?
Statement of Work is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
A statement of work, or SOW, is a document that defines the specific services, deliverables, timelines, and responsibilities for a project or engagement. It sits under a broader master agreement and spells out exactly what will be done. A clear SOW prevents scope disputes by making expectations explicit for both the customer and the provider.
Key takeaways
- Defines services, deliverables, timeline, and responsibilities.
- Sits under a master service agreement.
- Prevents scope disputes by setting clear expectations.
- Common in services and implementation engagements.
Why it matters
Vague scope is the root of most services conflicts. A precise SOW protects both sides by pinning down exactly what is delivered, by when, and who is responsible, before work begins.
How Ardovo handles it
Ardovo can attach the SOW and its deliverables to the deal and carry them into projects, so what was sold matches what is delivered. Rook keeps SOW milestones visible alongside the deal record.
Frequently asked questions
What is the difference between an SOW and an MSA?
An MSA sets the overarching legal terms of the relationship. An SOW defines the specific work, deliverables, and timeline for a particular project under that MSA. One MSA can cover many SOWs.
What should a statement of work include?
The scope of work and deliverables, timelines and milestones, responsibilities of each party, acceptance criteria, and pricing or payment terms for the engagement. Clarity here prevents disputes later.