Statement of Work (SOW)
DE: Leistungsbeschreibung (SOW)
A narrative description of products, services, or results to be delivered.
Detailed Explanation
The Statement of Work is a narrative description of the products, services, or results to be delivered by the project. It describes the project deliverables in sufficient detail for bidding or planning purposes and references the product scope description, business need, and strategic plan.
The SOW is particularly important in procurement contexts where it forms part of the contract between the buyer and seller. It defines what will be delivered, the standards that must be met, and the acceptance criteria that will be applied.
A well-written SOW is specific enough to be actionable but flexible enough to accommodate reasonable changes. It should clearly distinguish between mandatory requirements ('shall') and optional features ('should' or 'may').
Key Points
- Narrative description of what the project will deliver
- Critical in procurement — becomes part of the contract
- References product scope, business need, and strategy
- Defines deliverables, standards, and acceptance criteria
- Uses precise language: 'shall' (mandatory) vs. 'should' (optional)
- Must be detailed enough for vendors to bid accurately
Practical Example
A company writes an SOW for a custom software development vendor: 'The vendor shall deliver a web-based inventory management system supporting 500 concurrent users, integrating with SAP ERP via REST API, with 99.9% uptime SLA, by September 30. The system shall comply with GDPR and ISO 27001 standards. Acceptance testing shall be conducted over a 2-week UAT period.'
Tips for Learning and Applying
Use 'shall' for mandatory requirements — it has legal weight in contracts
Be specific about deliverables, timelines, and quality standards
Include acceptance criteria explicitly to prevent disputes
Have legal review the SOW before including it in procurement documents
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