In the contract statement of work (often just called the SOW), the seller fully describes the work to be completed and/or the product to be supplied. The SOW becomes part of the contract between the buyer and the seller. It is typically created as part of the procurement planning process, and it allows the seller to determine if he or she can meet the written requirements of the SOW.
Particular industries have different assumptions about what constitutes an SOW. What one industry calls a SOW may be a statement of objectives (SOO) in another. An SOO is a document describing a problem to be solved by the seller.
EXAM TIP The SOW can be updated as the project moves through negotiations with the vendor or as more details about the purchase become available.
Was this article helpful?
What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.