Statement of Work (SOW)

A document that captures the work products and services, including, but not limited to: the work activities and deliverables to be supplied under a contract or as part of a proj­ect timeline. In contrast to a typical temp or contingent work arrangement which is billed based on time worked, SOW agreements are usually billed based on a fixed price deliverable or for hitting spe­cific milestones. Like typical contingent arrangements, they may also be billed based on time, including arrangements where there is a time-based billing that is capped at some “not to exceed” level for time and materials.