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Vertalis Business Law Glossary

Contracts

Statement of Work

Also called: SOW.

By Tim Nichols

In plain English

A project-specific document describing services, deliverables, responsibilities, milestones, acceptance, and related terms. It can operate under an MSA or serve within another contracting structure. A useful SOW explains both what is included and how changes are approved, rather than relying only on a general description of the project.

Types and key distinctions

Scope of Work

The description of the services or activities a provider agrees to perform. It should identify boundaries, assumptions, exclusions, and required customer cooperation where relevant. Scope of work is the substantive description; a statement of work is a document that may contain that description and additional project terms.

Deliverables

The specific work products or results a provider must supply under an agreement, such as software, designs, reports, or documentation. The contract should identify their required characteristics, timing, and acceptance process. Delivering a usable product and transferring ownership rights in that product are separate contractual questions.

Acceptance Criteria

The agreed standards and procedures used to determine whether a deliverable satisfies a contract. They may specify required features, testing, review deadlines, rejection procedures, and correction rights. Clear criteria help distinguish unfinished work from requests for additional work outside the original scope.

Contracts & Transactions
Statement of Work Drafting: Defining Project Scope, Deliverables, and ExpectationsRead the Insight