Definition: A statement of work (SOW) is a document that defines what a provider will do for a client on a specific engagement, including scope, deliverables, roles, timeline, acceptance criteria and pricing.
A typical SOW covers objectives and background, in-scope and out-of-scope work, deliverables and milestones, team roles, assumptions and dependencies, acceptance criteria, the pricing model such as fixed price or time and materials, invoicing terms and how changes are requested and approved.
Many relationships use a master services agreement (MSA) for legal terms such as confidentiality, IP ownership and liability, then a separate SOW for each project. This lets new work start under a short SOW without renegotiating the legal terms.
Be specific about outcomes and how they will be measured, list what is excluded, name decision makers on both sides and define how scope changes are handled. For AI work, include data access, evaluation criteria and what counts as production-ready, using a tool like an AI project scoping template.
Ryz provides a scoped plan, a price and the names of the people who would do the work. The client always owns all code and IP our engineers produce.
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