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Contracts & Pricing

Statement of Work (SOW)

Also known as: SOW

A statement of work (SOW) is a document that defines the specific deliverables, activities, timelines and acceptance criteria for a piece of work under a contract.

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An SOW sits beneath a broader agreement such as a master service agreement and spells out exactly what will be done for a particular engagement — the scope, milestones, deliverables, standards and how completion will be judged. It turns a general relationship into a concrete, measurable set of obligations for both buyer and supplier.

A precise SOW is the best defence against scope creep and disputes. When deliverables, timelines and acceptance criteria are ambiguous, work drifts and invoices become contentious. For services and project-based procurement in Malaysia, a well-written SOW makes performance easy to verify and payment easy to justify.

Frequently asked questions

What is a statement of work?
A statement of work (SOW) is a document that defines the exact deliverables, activities, timelines and acceptance criteria for a specific engagement, usually under a wider master agreement.
What is the difference between an SOW and a master service agreement?
A master service agreement sets the overarching legal and commercial terms of a relationship, while an SOW defines the specific scope, deliverables and timelines for one piece of work under it.

Related terms

Master Service Agreement (MSA)

A master service agreement (MSA) is an overarching contract that sets the general terms governing an ongoing relationship between a buyer and a supplier.

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Service Level Agreement (SLA)

A service level agreement (SLA) defines the measurable standards a supplier commits to — such as response time, uptime or delivery reliability — and the consequences of missing them.

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Contract Management

Contract management is the process of creating, executing, tracking and renewing supplier contracts to ensure both sides meet their obligations and value is realised.

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Contract Variation

A contract variation is a formal change to the agreed scope, price, timeline or terms of an existing contract, made with both parties' consent.

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