The statement of work (SoW) – also called requirement specification – specifies what the client requires from the product or service and what deliverables they require from the contractor. Based on the SoW, the customer can obtain various offers from potential contractors. The requirement specifications form the basis for subsequent negotiations on the planned project, quotation and contract base. In the next step, the contractor will draw up an even more detailed scope statement based on the statement of work. The statement of work often serves as a reference document in the later course of the project, because it contains all objectives and guidelines on which the project partners have agreed.
The statement of work document can be structured in various ways. However, the core criteria are the following: Reason and objectives of the project, intended functions and services (preferably written from the user's point of view), contractual framework conditions such as price and delivery date and risk acceptance. The specifications therefore contain content and technical instructions as well as important milestones.