I have been freelancing for nearly 6 years now (gosh, time flies). Initially I didn\u2019t formalize my agreements with clients \u2014 no signed documents or contracts.<\/p>\n\n
But as I gained more experience, I realized that if I wanted to grow my business I had to set ground rules and put them in writing. Once I introduced contracts, which included a statement of work, working with clients became much easier.<\/p>\n
<\/a><\/p>\n There is something about contracts that encourages (most) people to follow the rules. The more work you take on, the more important it is to organize it properly.<\/p>\n Trust me, scaling your business without a contract is hard, if not impossible, to do. So in today\u2019s post I am going to discuss what a statement of work is and how to create one.<\/p>\n Table of Contents<\/strong><\/p>\n What is a statement of work? <\/a> <\/a> <\/p>\n <\/a><\/p>\n Download this free project proposal template from HubSpot.<\/a><\/p>\n A contract is a legal agreement between two companies, or an employer and employee, that describes the completion of specific work for an agreed rate.<\/p>\n While both SOWs and contracts are crucial in business and project management, they serve different functions.<\/p>\n Let\u2019s take a more detailed look at how these two documents differ.<\/p>\n An SOW acts as a detailed project plan that explains what must be done. It mainly focuses on tasks and deliverables.<\/p>\n A contract, on the other hand, creates a legal framework for the relationship between parties. It sets terms and conditions, which guide the relationship along with rights and responsibilities. It explains in detail what will happen if one of the parties fails to deliver on the agreed terms.<\/p>\n An SOW covers project details, including tools, methodologies, timelines, acceptance criteria, etc. Unlike a contract, it\u2019s written in easy to understand language, without any jargon.<\/p>\n Contracts include broader terms and conditions like liability, termination clauses, payment, and dispute resolution procedures. They use formal legal language to guarantee enforceability.<\/p>\n On its own a SOW is not legally binding. It mainly acts as project guidelines. A contract is a standalone legal agreement, which if breached can draw legal consequences.<\/p>\n An SOW is project specific and therefore very detailed. It describes what needs to be done and when, and can include technical specifications. A contract is more generic, offering a high level overview of the relationship. You can use one contract for multiple projects.<\/p>\n SOWs can be modified if needed; if the scope of work changes or more work is required, you can simply add it to the SOW.<\/p>\n Just bear in mind that you might need approval from relevant stakeholders. It\u2019s not as easy to modify a contract. It usually requires formal amendments and adherence to legal protocols. Also, changes can only be made through mutual agreement.<\/p>\n A SOW is often used in project management contexts, such as marketing campaigns or IT projects that call for specific deliverables and timelines. They\u2019re particularly useful when multiple stakeholders are involved.<\/p>\n A contract can be used virtually in any context, including vendor contracts, employment, and service agreements. It\u2019s especially beneficial to have one in place for long-term collaborations.<\/p>\n A scope of work is usually part of a statement of work. Occasionally, it can act as a standalone document. It includes information on project size, team goals, and steps required to finalize the project. While these two terms are often used interchangeably, they refer to different project management concepts. Here are the main differences.<\/p>\n The main aim of an SOW is to give a detailed overview of the project and make sure that everyone involved understands their responsibilities and expectations.<\/p>\n The scope of work, as the name suggests, defines what a project includes \u2014 what\u2019s covered and what\u2019s not. Defining specific tasks and deliverables prevents scope creep.<\/p>\n An SOW covers project objectives, roles and responsibilities, timeline, payment terms, etc. It focuses on both the \u201cwhat\u201d and \u201chow\u201d (i.e., the methodology).<\/p>\n The scope of work contains detailed information on the tasks and deliverables, such as a description of the work to be performed, project objectives and goals, key milestones, constraints, and exclusions.<\/p>\n Both of them can be legally binding if they\u2019re included in the contract. As standalone documents, they have no legal power.<\/p>\n Since an SOW covers many project details beyond the scope, it\u2019s more comprehensive.<\/p>\n The scope of work focuses specifically on the work to be done, and includes high-level timelines and deliverables without going into depth on management and execution.<\/p>\n Modifying an entire SOW can be more challenging, as it covers multiple aspects of the project, and a single change can impact various components. It might also require formal approval.<\/p>\n The scope of work, on the other hand, is easier to change as it only applies to the work involved. While it might still require stakeholder approval, a change won\u2019t necessarily impact other parts of the project.<\/p>\n The scope of work is part of an SOW, and both are used in complex projects that need detailed information to guarantee successful delivery. For simpler projects, the scope of work can be used as a separate document to define a task.<\/p>\n Both of these documents are often included within a contract to provide a full overview of the agreement.<\/p>\n <\/a> <\/p>\n The main aim of the statement of work is to make sure that all parties clearly understand their roles and responsibilities. Whenever I start working with a new client, I sign a contract that includes a statement of work.<\/p>\n I outline when they have to deliver project briefs, how many revisions they\u2019re entitled to, what will happen if they fail to provide feedback on time, and so on.<\/p>\n Including such details not only helps me deliver projects on time, but also helps avoid misunderstandings. It also allows for some flexibility in how we work together.<\/p>\n <\/a> <\/p>\n Design SOWs revolve around the design and development of services or products, but you\u2019ve probably figured it out on your own. They list specific design-related tasks, like research, prototyping, and testing.<\/p>\n The contractor\u2019s role is to deliver a design, which is in line with client requirements. The SOW outlines milestones for design evaluations and approvals.<\/p>\n The website design template<\/a> below gives you an idea of what this type of SOW could look like.<\/p>\n <\/a><\/p>\n <\/a><\/p>\n If you\u2019re unsure how long it will take you to finalize the project, or what resources you\u2019ll need, it\u2019s best to go with the level of effort SOW.<\/p>\n Also referred to as time and material, this approach involves paying for the hours worked along with any materials used to do the job.<\/p>\n This type of statement of work is usually used in consulting services or agile projects, which are prone to changing requirements.<\/p>\n <\/a><\/p>\n Image Source<\/a><\/em><\/p>\n Performance-based SOWs prioritize project outcomes over the process. They provide an overview of the goals and objectives that contractors are obliged to achieve. Payments depend on the achievement of the predefined metrics.<\/p>\n This type of SOW is best used when you have a specific objective in mind, for example, increasing online sales by 30%.<\/p>\n <\/a><\/p>\n Image Source<\/a><\/em><\/p>\n <\/a> <\/p>\n Let\u2019s take a look at what should be included in a statement of work. Since I am a freelance content marketer, I\u2019ll use examples from my own projects related to SEO blog writing.<\/p>\n This section explains the work that will be done and gives general information about the project, including who will be involved.<\/p>\n In my case, the introduction could be:<\/p>\n \u201cThis Statement of Work outlines the SEO blog writing services to be provided by Anna Rubkiewicz for HubSpot. The project involves creating optimized blog content to improve organic search rankings, drive traffic, and engage target audiences. Both parties agree to the terms outlined in this document.\u201d<\/p>\n The purpose statement addresses the reasons for starting the project. It discusses the main objectives, covers deliverables, and defines what success looks like for different stakeholders.<\/p>\n Here is an example:<\/p>\n \u201cThe purpose of this project is to enhance HubSpot\u2018s online presence through SEO-focused blog content. The key objectives include increasing website traffic, improving search engine rankings, and providing valuable information to the target audience. The project aims to deliver 12 high-quality blog posts over the course of 4 months that align with the client\u2019s content strategy.\u201d<\/p>\n This section lists all the tasks which should be completed on the project. It provides a detailed overview of the processes, including time frames (they can be estimated), and a project scope<\/a> which includes all the vital information.<\/p>\n \u201cAnna Rubkiewicz will provide the following services:<\/p>\n Research and identify relevant topics based on SEO keywords provided by the client. I complete projects on a monthly basis so if I agree to deliver three articles per month, I state in the SOW that I will deliver all articles by the end of the month.<\/p>\n This part explains where the work will be done, remotely or at a specific location.<\/p>\n It also details all the equipment and software that will be used. I work remotely and communicate with my clients via email or Slack, and deliver all articles in Google Docs.<\/p>\n This section breaks down all the steps you included in the scope of work into more detailed tasks. Here is an example:<\/p>\n Keyword Research.<\/strong> Collaborate with the client to identify target keywords and topics. <\/p>\n Research and Outline Phase.<\/strong> Research the topic and create an outline. <\/p>\n Writing Phase.<\/strong> Draft and submit the blog post for client review. <\/p>\n Revisions.<\/strong> Implement feedback and finalize the blog posts. <\/p>\n This is where you include the project timeline, such as the start and finish dates, billable hours, and any other scheduling specifics.<\/p>\n Since I usually work with clients long term, instead of including a finish date, I ask them for one month’s notice if they wish to end our cooperation.<\/p>\n This section lists project deliverables with their due dates and detailed descriptions. It helps set expectations for all the stakeholders. My deliverables would include:<\/p>\n 3 SEO-optimized blog posts per month (approximately 1,500 words each). In the schedule section, you can include a detailed timeline for each deliverable.<\/p>\n Personally, I don\u2019t include exact dates. Instead, I tell my clients how much time they have to complete a given step.<\/p>\n For example, I give them three days to provide feedback on the outline and three days to review the draft. From my perspective, setting a time limit is the only way to guarantee timely project completion.<\/p>\n This part of the SOW defines the success metrics. It could be the delivery of high-quality blog posts that are well-written and SEO optimized and generate organic traffic after publication.<\/p>\n List everything you need to successfully deliver the project<\/a>, including tools and equipment.<\/p>\n Whenever the project involves keyword research, I ask the client to grant me access to Google Analytics and export the keywords they\u2019re currently ranking for.<\/p>\n I also put a strong emphasis on regular communication and timely feedback.<\/p>\n This is probably one of the most important sections for any freelancer or business owner. It outlines how you\u2019ll get paid \u2014 upfront or after delivering the project \u2014 and details how much time the client has to settle the invoice.<\/p>\n I issue all my invoices at the end of the month and give my clients two weeks to pay via bank transfer.<\/p>\n
\n Purpose of a Statement of Work <\/a>
\n Types of SOWs <\/a>
\n Components of an SOW<\/a> <\/p>\nSOW vs. Contract<\/h3>\n
Purpose<\/h4>\n
Content and Structure<\/h4>\n
Legal Binding Nature<\/h4>\n
Level of Detail<\/h4>\n
Flexibility and Changes<\/h4>\n
Use Cases<\/h4>\n
Statement of Work vs. Scope of Work<\/h3>\n
Purpose<\/h4>\n
Content and Structure<\/h4>\n
Legal Binding Nature<\/h4>\n
Level of Detail<\/h4>\n
Flexibility and Changes<\/h4>\n
Use Cases<\/h4>\n
Purpose of a Statement of Work<\/h2>\n
Types of SOWs<\/h2>\n
Design<\/h3>\n
Level of Effort<\/h3>\n
Performance-Based<\/h3>\n
Components of an SOW<\/h2>\n
Introduction<\/h3>\n
Purpose Statement<\/h3>\n
Scope of Work<\/h3>\n
\n Write 12 blog posts (approximately 1,500 words each) optimized for search engines.
\n Include internal and external links where appropriate.
\n Provide meta titles and descriptions for each blog post.
\n Include graphics with alt text.\u201d <\/p>\nWhere the Work Will Be Done<\/h3>\n
Tasks<\/h3>\n
Milestones<\/h3>\n
Deliverables<\/h3>\n
\n Meta titles and descriptions for each blog post.
\n A report summarizing keyword research and topic selections. <\/p>\nSchedule<\/h3>\n
Project Success<\/h3>\n
Project Requirements<\/h3>\n
Payment Terms<\/h3>\n