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
3 risks identifiedDeliverables may be unclear.
Timelines may be missing or unrealistic.
Payment terms may not align with the actual work.
What to check before signing
ChecklistAre the deliverables and milestones specific?
Does the SOW match the master agreement?
Are assumptions, dependencies, and acceptance criteria stated clearly?
Negotiation ideas
ActionableDefine 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
1 questionsWhat is a statement of work?
It is the project-specific document describing the services, scope, deliverables, timing, and fees.
Want help reviewing the full contract?
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