Statement of Work(SOW) is a document that captures the work products and services, including, but not limited to: the work activities and deliverables to be supplied under a contract or as part of a project timeline. These agreements are usually billed based on a fixed price deliverable or for hitting specific milestones. They are also billed based on time, including arrangements where there is a time-based billing that is capped at some not-to-exceed level for time and materials.