- Scope of Work (SOW)
- A document that defines the specific tasks, deliverables, timeline, and payment terms agreed between a client and service provider for a given project.
- Deliverable
- A specific, measurable output the service provider is contractually obligated to produce β such as a completed report, deployed software build, or design file set.
- Milestone
- A defined checkpoint in the project timeline at which a specific deliverable or group of deliverables is due and often tied to a payment trigger.
- Change Order
- A written amendment to the original scope of work that documents an agreed change to deliverables, timeline, or cost β requiring signatures from both parties to take effect.
- Acceptance Criteria
- The specific, objective standards a deliverable must meet before the client is obligated to approve it and release associated payment.
- Scope Creep
- The gradual expansion of project requirements beyond what was agreed in the original scope of work, typically without a corresponding change to budget or timeline.
- Master Services Agreement (MSA)
- A framework contract that governs the general terms of a business relationship, to which individual scopes of work are attached as project-specific addenda.
- Time and Materials (T&M)
- A billing structure where the client pays for actual hours worked at an agreed rate plus direct costs, rather than a fixed project price.
- Fixed-Price Contract
- A contract in which the total price for a defined scope is set in advance and does not change unless a formal change order is executed.
- Intellectual Property Assignment
- A clause transferring ownership of work product created during the engagement from the service provider to the client upon full payment.
- Notice to Proceed
- Formal written authorization from the client instructing the service provider to begin work under the scope of work.