Statement of Work (or SOW) is a formal document that defines the entire scope of the work involved for a vendor and clarifies deliverables, costs, and timeline. It is needed in situations where a project involves vendors and external contributors in addition to the internal project team. You usually create a SOW as part of a bid document or part of a contract. It is vital that the SOW is clear to all stakeholders in order to clarify the metrics for success and to avoid disputes involving deliverables, budgets, or timelines.
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