I’ve been freelancing for almost 6 years now (gosh, time flies). Initially, I did not formalize my agreements with clients – no signed documents or contracts.
But as I gained more experience, I realized that if I wanted to grow my business, I needed to set ground rules and put them in writing. After I introduced contracts that included a statement of work, working with clients became much easier.
There’s something about contracts that encourages (most) people to play by the rules. The more work you take on, the more important it is to organize it properly.
Trust me, scaling your business without a contract is difficult, if not impossible. So in today’s post I will discuss what a statement of work is and how to create one.
Table of contents
What is a service description?
The Statement of Work (SOW) is a document that describes in detail the scope of work to be completed as part of a project. It is legally binding when included in a contract. It includes information such as activities, deliverables, deadlines and compensation. This sets the rules and expectations for future collaboration. Before you create a project plan and agree to its execution, first prepare and sign the statement of work.
Download this free project proposal template from HubSpot.
SOW vs. contract
A contract is a legal agreement between two companies or an employer and an employee that describes the performance of a specific work for an agreed price.
Although both SOWs and contracts are crucial in business and project management, they serve different functions.
Let’s take a closer look at how these two documents differ.
Purpose
A SOW acts as a detailed project plan that explains what needs to be done. It mainly focuses on tasks and results.
A contract, on the other hand, creates a legal framework for the relationship between the parties. It sets out terms and conditions that govern the relationship, rights and obligations. This explains in detail what happens if one of the parties does not comply with the agreed terms.
Content and structure
A SOW covers project details, including tools, methodologies, schedules, acceptance criteria, etc. Unlike a contract, it is written in easy-to-understand language and without technical jargon.
Contracts include broader terms and conditions such as liability, termination clauses, payments and dispute resolution procedures. To ensure enforceability, they use formal legal language.
Legally binding character
A SOW alone is not legally binding. It serves primarily as a project guide. A contract is a separate legal agreement, the violation of which can have legal consequences.
Level of detail
A SOW is project specific and therefore very detailed. It describes what needs to be done and when and may include technical specifications. A contract is more general and provides a general overview of the relationship. You can use one contract for multiple projects.
Flexibility and changes
SOWs can be changed if necessary; If the scope of work changes or more work is required, you can simply add this to the statement of work.
However, keep in mind that you may need approval from relevant stakeholders. It’s not that easy to change a contract. Formal changes and compliance with legal protocols are usually required. Changes can also only be made by mutual agreement.
Use cases
A SOW is often used in a project management context, such as marketing campaigns or IT projects that require specific deliverables and timelines. They are particularly useful when multiple stakeholders are involved.
A contract can be used in virtually any context, including supplier contracts, labor and service agreements. It is particularly advantageous to have one for long-term collaborations.
Description of work vs. scope of work
A scope of work is usually part of a service description. Occasionally it can function as a standalone document. It includes information about the project size, team goals, and steps required to complete the project. Although these two terms are often used interchangeably, they refer to different project management concepts. Here are the main differences.
Purpose
The main goal of a SOW is to provide a detailed overview of the project and ensure that everyone involved understands their responsibilities and expectations.
The scope of work, as the name suggests, defines what a project entails – what is covered and what is not. Defining specific tasks and deliverables prevents scope expansion.
Content and structure
A SOW covers project objectives, roles and responsibilities, schedule, payment terms, etc. It focuses on both the “what” and the “how” (i.e. the methodology).
The scope of work contains detailed information about the tasks and deliverables, such as: B. a description of the work to be performed, project goals and objectives, important milestones, limitations and exclusions.
Legally binding character
Both can be legally binding if included in the contract. As independent documents, they have no legal force.
Level of detail
Because a SOW covers many project details beyond the scope, it is more comprehensive.
Scope of work focuses specifically on the work to be done and includes general schedules and deliverables without delving deeply into management and execution.
Flexibility and changes
Changing an entire statement of work can be more challenging because it covers multiple aspects of the project and a single change can impact different components. Formal approval may also be required.
The scope of work, on the other hand, is easier to change because it only relates to the work at hand. Although stakeholder consent may still be required, a change will not necessarily affect other parts of the project.
Use cases
Scope of work is part of a statement of work and both are used in complex projects that require detailed information to ensure successful delivery. For simpler projects, the scope of work can be used as a separate document to define a task.
Both documents are often included in a contract to provide a complete overview of the agreement.
Purpose of a service description
The main goal of the statement of work is to ensure that all parties clearly understand their roles and responsibilities. Whenever I work with a new client, I sign a contract that includes a statement of work.
I describe when they must submit project briefs, how many revisions they are entitled to, what happens if they don’t provide timely feedback, and so on.
Including details like this not only helps me deliver projects on time, but also helps avoid misunderstandings. It also allows for some flexibility in the way we work together.
Types of SOWs
design
Design SOWs are about the design and development of services or products, but you’ve probably figured it out yourself. They list specific design-related tasks, such as research, prototyping, and testing.
The contractor’s job is to deliver a design that meets the customer’s requirements. The SOW describes milestones for design reviews and approvals.
The Website design template Below is an idea of what this type of SOW might look like.
Expense
If you’re not sure how long it will take to complete the project or what resources you’ll need, it’s best to look at the SOW effort level.
This approach is also known as “time and materials” and includes payment for hours worked and materials used in the work.
This type of statement of work is commonly used in consulting services or agile projects that are susceptible to changing requirements.
Performance based
Performance-based SOWs prioritize project outcomes over process. They provide an overview of the goals that contractors have to achieve. Payments depend on achieving predefined metrics.
This type of SOW is best if you have a specific goal in mind, such as increasing online sales by 30%.
Components of a service description
Let’s take a look at what should be included in a statement of work. Since I am a freelance content marketer, I use examples from my own SEO blog writing projects.
introduction
This section explains the work to be carried out and provides general information about the project, including who will be involved.
In my case the introduction could be:
“This Statement of Work describes the SEO blog writing services that Anna Rubkiewicz will provide to HubSpot. The project includes creating optimized blog content to improve organic search rankings, increase traffic and engage target audiences. Both parties agree to the terms and conditions set forth in this document.”
Statement of purpose
The letter of intent addresses the reasons for starting the project. Key objectives are discussed, deliverables are addressed, and what success looks like for various stakeholders is defined.
Here is an example:
“The purpose of this project is to improve HubSpot’s online presence through SEO-focused blog content. The main goals include increasing website traffic, improving search engine rankings, and providing valuable information to the target audience. The goal of the project is to deliver twelve high-quality blog posts within four months that align with the client’s content strategy.”
Scope of work
This section lists all the tasks that should be completed as part of the project. It provides a detailed overview of the processes, including time frames (they can be estimated) and a Project scope that contains all important information.
“Anna Rubkiewicz will provide the following services:
- Research and identify relevant topics based on SEO keywords provided by the client.
- Write 12 blog posts (around 1,500 words each), optimized for search engines.
- Include internal and external links where appropriate.
- Provide meta titles and descriptions for each blog post.
- Insert graphics with alternative text.”
I complete projects monthly. So if I agree to deliver three items per month, I declare in the Statement of Work that I will deliver all items by the end of the month.
Where the work gets done
This part explains where the work will be done, remotely or at a specific location.
It also lists all the devices and software used. I work remotely and communicate with my clients via email or Slack and deliver all articles in Google Docs.
Tasks
This section breaks down all the steps you included in the scope of work into more detailed tasks. Here is an example:
- Keyword research. Work with the client to identify target keywords and topics.
- Research and structuring phase. Research the topic and create an outline.
- Writing phase. Draft the blog post and submit it for client review.
- Revisions. Implement feedback and finalize blog posts.
Milestones
Here you specify the project schedule, e.g. B. the start and end dates, billable hours and all other planning details.
Since I usually work with clients on a long-term basis, I do not ask them to specify an end date, but rather to notify them one month in advance if they want to end our cooperation.
Services
This section lists the project deliverables with their due dates and detailed descriptions. It helps set expectations for everyone involved. My services include:
- 3 SEO-optimized blog posts per month (approx. 1,500 words each).
- Meta titles and descriptions for each blog post.
- A report that summarizes keyword research and topic selection.
schedule
The Schedule section allows you to specify a detailed schedule for each delivery.
Personally, I do not provide exact dates. Instead, I tell my clients how much time they have to complete a particular step.
For example, I give them three days to provide feedback on the outline and three days to review the draft. In my opinion, setting a time limit is the only way to ensure that the project is completed on time.
Project success
This part of the service description defines the success metrics. It could be providing high-quality blog posts that are well-written, SEO-optimized, and generate organic traffic once published.
Project requirements
List everything you need to successfully complete the project, including tools and equipment.
Whenever the project involves keyword research, I ask the client to give me access to Google Analytics and export the keywords they are currently ranking for.
I also attach great importance to regular communication and timely feedback.
Payment terms
This is probably one of the most important sections for any freelancer or business owner. This outlines how you will be paid – in advance or after the project is delivered – and how much time the customer has to pay the invoice.
I issue all my invoices at the end of the month and give my customers two weeks to pay via bank transfer.
Here is one ready Work order template from HubSpot, which you can download to document your work and request payment.
closure
The final part explains how work results are accepted and signed off. All my clients need to do is email me to confirm that the final draft has been accepted and no further revisions are required.
If I submit the final draft and do not hear back within five days, I will assume that the article does not require any further revisions and complete the assignment. Of course, this is something my clients know and have agreed to.
Start every project with a statement of work.
At first you might think that creating a service description requires a lot of effort.
But when you consider all the benefits—like avoiding misunderstandings, setting clear expectations, dividing tasks efficiently, and ensuring timely payments—it quickly becomes clear that it’s worth it.
Believe me, you can’t grow your business or deliver your work on time without setting some ground rules. And if you put these rules in writing, they will have even more impact.