Clause guide
Statement of Work Clause clause: meaning, risks, and what to negotiate
Sets out the scope, deliverables, milestones, and commercial terms for specific work under the main contract.
What it means
The statement of work is often where the real operational detail lives. If it is vague, disputes over scope, timing, and payment are much more likely.
Common risks
- • Deliverables may be unclear.
- • Timelines may be missing or unrealistic.
- • Payment terms may not align with the actual work.
What to check before signing
- • Are the deliverables and milestones specific?
- • Does the SOW match the master agreement?
- • Are assumptions, dependencies, and acceptance criteria stated clearly?
Negotiation ideas
- • Define scope in concrete terms.
- • Link milestones to objective deliverables.
- • Include assumptions, exclusions, and change request procedures.
Example clause
“The Services shall be performed in accordance with the applicable Statement of Work, which forms part of this Agreement upon execution by both parties.”
Frequently asked questions
What is a statement of work?
It is the project-specific document describing the services, scope, deliverables, timing, and fees.
Related clauses
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