A statement of work (SOW) is a document that sets out exactly what a contractor, consultant or fractional director will deliver, including objectives, scope, deliverables, timescales, time commitment, responsibilities and fees. It sits under a main services agreement and gives both parties a shared, measurable definition of the engagement.
What it means
A good SOW answers what will be done, by when, by whom and for how much. It typically lists objectives and success measures, deliverables, what is out of scope, the number of days or hours, key milestones, reporting arrangements, client responsibilities and the fee structure.
When the work changes, a new or amended SOW is agreed rather than rewriting the whole contract.
How it works in a UK business
For fractional and interim leadership, the SOW turns a broad role such as fractional CFO into specific outcomes, for example a 13-week cash flow forecast, a monthly board pack and support with a funding round. Clear deliverables also help when assessing an engagement against the off-payroll working rules, though employment status depends on the whole working arrangement, not the document alone.
Frequently asked questions
What is the difference between a contract and a statement of work?
The main contract, often called a master services agreement, covers legal terms such as liability, confidentiality, payment terms and termination. The statement of work covers the specific project or engagement: scope, deliverables, timing and fees. One contract can support several SOWs over time.
Who writes the statement of work?
Usually the provider drafts it based on discussions with the client, and both sides then refine it. The client should check that objectives are measurable, that exclusions are clear and that its own responsibilities, such as access to people and data, are realistic before signing.
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Last updated: 5 November 2026