Statement Of Work Template: A Comprehensive Guide For Agencies

Agencies need to have a detailed statement of work signed before starting any client project. Without one, it’s easy to fall into misunderstandings about the project’s goals, deliverables, timelines, and budget. This is a recipe for disaster and frustration for both your team and the client.

If you’re new to creating statements of work or your current template needs a refresh, this post covers all the key components of a detailed, effective SOW. You’ll get a step-by-step guide to create one including a helpful list of dos and don’ts.

What Is a Statement Of Work (SOW)?

A statement of work is a formal document between an agency and client that explains the expectations and responsibilities of a certain project.

By including a statement of work, you are expediting your projects, immediately putting them on a faster track to completion.

Before you provide an estimate for any client project, you have to set specific tasks, define deliverables, outline timelines, and determine internal resources to complete the project or campaign. All of this ensures your agency will stay on budget and maximize estimated ROI for the project.

From there, you’ll want to include the following information in your SOW to confirm you & your client are on the same page.

• Scope of work
• Deliverables
• Timeline and Milestones
• Budget and Payment Terms
• Roles and Responsibilities
• Acceptance Criteria

Don’t worry we will dig into these later, defining and describing what each key component looks like in action.

Why Agencies Can’t Afford To Skip The SOW

In order for your client projects to be profitable for your agency, you need to be able to anticipate future roadblocks. It’s just like how you plan for anything that is needed to go smoothly. You plan for the hiccups, the kinks, and the “what ifs”, to ensure the final product is as seamless as possible.

A statement of work does this for your projects and ensures your process is seamless for your client and team.

With a SOW, your client knows all the project details from deliverables to timelines, so you can build trust and manage expectations for working with your agency.

In the end, it’s your secret weapon for smooth sailing project management and ROI.

Craft Your SOW Template: A Step-by-Step Guide

Here’s the essentials to any winning SOW and the exact steps to follow to create your own.

To start, here’s a list of things you should include in your statement of work template:

Introduction

The Introduction provides a high-level overview of the project, setting the stage for the entire Statement of Work by outlining the background, context, and parties involved.

Purpose & Objectives

Objectives define the specific goals and outcomes the project aims to achieve and serves as a benchmark for success. This aligns expectations among all parties.

Scope Of Work

The scope of work outlines the project boundaries. This includes specific inclusions or exclusions to prevent scope creep and ensure a shared understanding of the project’s limits and deliverables.

Task List or Milestones

The task list breaks down the project into specific actionable items, providing a clear roadmap for the project team and facilitating effective resource allocation and progress tracking.

Deliverables

Deliverables are the tangible or intangible products, services, or results to be produced through the project. Define your deliverables to clearly outline what the client can expect upon completion of the project.

Timeline

The Timeline outlines the project schedule, including start dates, end dates, and key milestones, approval deadlines, and other crucial for managing expectations and ensuring timely project completion.

Location

Add location to confirm where resources will complete the work.

Budget & Payment Schedules

The Budget section details the financial aspects of the project, including costs and payment schedules. This is essential for financial planning and control.

Signatures

If there are special circumstances to consider,

Customize Your Statement Of Work For Your Client Projects

Once you’ve outlined your template, it’s time to build one.

Empowering tools are crucial, these tools and resources to simplify the process of creating a SOW!

CoSchedule’s Hire Mia

Meet Hire Mia, your go-to marketing intelligence assistant. Powered through AI, Mia can help deepen your research prior to writing your SOW. She can re-phrase, clean up, and concise your writing within your SOW. And finally, she can double-check the facts and ensure it’s ready for send-off after your SOW is finished.

Hire Mia enhances your SOW from the very start to the very finish.

Team up with Hire Mia for the smoothest, stress free SOW creation.

Not to mention, right within CoSchedule you can save the SOW template you and Mia worked so hard on. That way it’s right there waiting for you the next time you need it.

Talk about convenience at your fingertips!

Microsoft Word Or Google Docs

Most likely you are already familiar with the big names of Microsoft Word and Google Docs, (no matter what team you’re on). But were you aware that these platforms automatically allow users to click and follow basic SOW creation?

Right there embedded in their platforms, you can access SOW formatting and collaboration features to streamline your SOW journey.

Software Mind

Software Mind is a dedicated SOW software expert that can guide users through their SOW development process as well as offer helpful project-specific templates. Users can follow the guidelines and suggestions for any type of project.

The Must-Have Elements Of A Killer SOW

A truly great statement of work must include:

Definition Of The Scope Of Work

Kick off your SOW strong and define all project boundaries. The scope of work ultimately embodies the tasks, activities, and goals the project aims to accomplish.

No beating around the bush here. Make it crystal clear what the finished product looks like and what it will take to get there.

Clear Deliverables

In order to set clear deliverables, reflect on your goals for the project. What do you hope to change? What do you hope to achieve?

Strong deliverables must be specific, tangible, and well-defined outcomes. In other words, highlight what you’re promising and when.

Lastly, setting clear deliverables, avoids scope creep. (Which is basically any project deliverables that exceed your initial project scope).

Timeline and Milestones

This is all about mapping out the project journey from start to finish. Think of this as ‘zooming out’ and taking a birds eye view of your project. Visualize what small steps need to be taken before the first milestone, the second, and so on.

Taking the time to envision the route your project will take will allow you to be more realistic with your overall timeline and milestones. You can be sure your project will hurdle any roadblocks with ease and propel to the finish line.

Pro Tip: If you want to take this a step further and optimize your timeline, consider creating a social media calendar. Increase transparency and view all of your social media efforts in one place.

Plus be able to see as far in advance as you’d like.

Budget and Payment Terms

The beautiful thing about a SOW is the mutual understanding of it all. Both parties are aware of the scrutiny and details within this document and both parties want to make this partnership thrive. A strong SOW allows you to talk money without the awkwardness.

So don’t be hesitant to clarify all aspects of budget and payment terms. Your client will nonetheless expect to see these specifics.

Roles and Responsibilities

Who’s doing what? Lay out the specifics of how each person will contribute to the project and when. When everyone knows their role and responsibilities in their entirety, THAT is precisely the gas that gets your project to its’ destination.

The roles you will speciifcy can be any part of the project that needs oversight. For example, decide who is in charge of promoting the project and overseeing the promotion strategy.

Ensure everyone knows their role and your project will be free of any pauses, confusion, or overlap.

Now, that’s a project your client will be excited to work on.

Acceptance Criteria

To specify your acceptance criteria also means you’re setting the bar for success.

Ask yourself: What are some non-negotiables within this project? Will you accept a range of a word count or a specific number? Do you want multiple designs to choose from or is one final design preferred?

It benefits both you and your client to know exactly what’s expected of them and how to properly satisfy the project.

SOW Template Best Practices: Do’s And Don’ts

Optimize Accuracy

The biggest pitfalls that strike and tear down a SOW is the inability to touch on certain details or it’s simply built on inadequate research. The best way to sidestep these common mistakes is to create your SOW with strong, accurate data. Include every decision both parties agreed on and mention all aspects of the project, no matter how small.

This means being nothing less than thorough. Remembering to reiterate the legal considerations and state the possible risks involved can slip through the cracks. It takes time and energy to do so, but it all makes up for it in the long run.

Pro Tip: It never hurts to get multiple eyes on your SOW! Run through this document your team, and of course the other party before setting it in stone.

Prioritize Clear Communication

Crystal clear communication. That is the special sauce in a truly effective SOW. Ensure your SOW speaks volumes with specific dates, times, deadlines, etc.

Chances are, if you think your SOW is specific enough, you could probably specify a few more things.

Leave nothing to a guessing game. Just like following a step-by-step guide to create your SOW, retrace those steps to know what goes in your SOW and what you may be forgetting.

Keep It Fresh

Alongside clear communication, comes relevance. If your SOW lacks in relevancy, how can it move forward? Consider the importance of regular SOW updates. It’s a fast moving world, and we know your project may see some pivots and adjustments. Your SOW should reflect all of those changes.

If the project shifts, so does your SOW. Simple as that.