SOW template: a statement of work that protects the money

What is a statement of work (SOW)?

A statement of work is the document that says exactly what you'll deliver on one project, by when, for how much, and what happens when the client asks for more. It sits under your contract and is specific to a single project.

If a client ever says “I thought that was included,” the SOW is what you both point at.

Is it scope of work or statement of work?

Both get used, and they're not the same thing. The scope of work is one section: the list of what's included and, just as important, what isn't. The statement of work is the whole document: the scope plus milestones, the payment schedule, payment terms, the change process and sign-off.

So if a client asks for a scope of work, send them the SOW. It covers both.

Statement of work vs proposal vs contract: what's the difference?

The proposal sells the work: why you, the approach, the price options. The SOW defines the project once they've said yes: exact deliverables, dates and payments. The contract (or master services agreement) holds the legal terms that apply across every project: liability, IP, termination.

Smaller agencies often fold the proposal and the SOW into one document. Keep the contract separate though... otherwise you end up renegotiating the legal terms on every job.

Who writes a statement of work?

Usually the agency or freelancer doing the work, because you're the one who knows what's realistic. Bigger clients sometimes send their own through procurement. If they do, read the scope and payment sections hardest, and push for milestone payments rather than one payment at the end.

How do you break a SOW into milestone payments?

Tie each payment to something the client signs off, not to a date you hope to hit. A common split is a deposit at kickoff, a payment at the main sign-off and the rest on delivery, which is what this template uses (30 / 35 / 35). The next phase starts when the previous invoice is paid.

How milestone billing works in Handl

What happens when the client asks for something that isn't in the SOW?

That's a change. The template's change-order clause says changes get quoted in writing (what's added, what it costs, what it does to the timeline) and approved before the work starts. Approved changes go on the next invoice.

The scope change dispute playbook