Custom Software Development Statement of Work (SOW)
The Statement of Work (SOW) is the most critical document in a custom software development engagement. It is the legal boundary that defines exactly what you are building, and more importantly, what you are not building. A weak SOW leads directly to scope creep, margin leakage, and damaged client relationships.
Use this rigorous, time-tested template to establish clear boundaries, define acceptance criteria, and protect your agency's profitability.
1. Project Overview & Objectives
Project Name: [Project Name/Code] Client: [Client Company Name] Prepared By: [Your Agency Name] Date: [Date]
Business Objective: [Client Company] requires the development of a custom web application to automate [Specific Process] and replace their existing legacy system. The primary objective is to reduce manual processing time by [X]% and improve data accuracy.
2. Scope of Services & Deliverables
[Your Agency] will provide full-stack software development services. The scope is strictly limited to the features and deliverables explicitly listed below.
2.1 Backend Development
- Database Architecture: Design and deployment of a PostgreSQL database on AWS RDS.
- REST API: Development of 12 core RESTful endpoints to support frontend functionality.
- Authentication: Integration of Auth0 for secure user login, registration, and role-based access control (RBAC).
2.2 Frontend Development
- Dashboard Interface: Implementation of a React-based single-page application (SPA) featuring a main user dashboard and 3 sub-views (Data Entry, Reports, Settings).
- Responsive Design: Optimization for desktop and standard tablet breakpoints (mobile screens are explicitly out of scope for Phase 1).
2.3 Quality Assurance (QA) & Testing
- Unit Testing: Minimum 80% code coverage for backend services.
- UAT Support: Provision of a staging environment and up to 10 hours of triage support during the Client's User Acceptance Testing phase.
3. Explicit Exclusions (Out of Scope)
The following items are explicitly excluded from this SOW. Any request to include these will require a formal Change Order and additional budget:
- Native mobile application development (iOS/Android).
- Migration of historical data from the legacy system.
- Custom third-party API integrations not listed in Section 2 (e.g., Salesforce, ERP systems).
- End-user training or creation of user manuals.
4. Assumptions & Dependencies
Our estimates and timeline are strictly contingent upon the following assumptions holding true. If these assumptions are breached, [Your Agency] reserves the right to pause work and issue a Change Request.
- Access: Client will provide necessary access to AWS, Auth0, and DNS settings by [Date].
- Review Cycles: Client will provide consolidated feedback on deliverables within 3 business days.
- Design Readiness: Client will provide all finalized, approved UI/UX designs and assets prior to development kickoff.
- No Legacy Code: This is a greenfield project; [Your Agency] will not be inheriting, reviewing, or refactoring existing client code.
5. Acceptance Criteria
A deliverable will be considered "Accepted" when it meets the following criteria:
- It aligns with the functional requirements detailed in Section 2.
- It passes all automated unit tests.
- It has been deployed to the Staging Environment for client review.
If the Client does not report a material defect (a bug preventing core functionality) within 5 business days of deployment to Staging, the deliverable will be deemed automatically accepted and invoiced accordingly.
6. Timeline & Milestones
This project operates on a fixed-bid, milestone-driven schedule.
| Milestone | Deliverable | Target Date |
|---|---|---|
| M1: Architecture | DB Schema & Infrastructure Setup | Week 2 |
| M2: Backend API | API Endpoints & Auth0 Integration Complete | Week 5 |
| M3: Frontend | UI Integration and Dashboard Complete | Week 9 |
| M4: UAT & Launch | UAT Sign-off and Production Deployment | Week 12 |
7. Pricing & Payment Schedule
Total Project Cost (Fixed Price): $85,000 USD
- 20% ($17,000): Due upon signing (Kickoff).
- 30% ($25,500): Due upon completion of M2 (Backend API).
- 30% ($25,500): Due upon completion of M3 (Frontend).
- 20% ($17,000): Due upon completion of M4 (Launch / Acceptance).
All invoices are Net 15. Late payments will incur a 1.5% monthly interest fee and may result in an immediate pause of project work.
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