Time & Materials Statement of Work (SOW) Template

TIME & MATERIALS STATEMENT OF WORK (SOW) TEMPLATE FAQ

What is a time & materials statement of work?

A Time & Materials (T&M) Statement of Work is a project document that describes what services will be performed and how the client will be billed based on actual time spent and materials used. It’s commonly used when the exact scope or timeline may change, making fixed-price billing harder.

How is it different from a fixed-price SOW?

In a fixed-price SOW, the price is set for defined deliverables. In a T&M SOW, invoices are based on hours worked and approved expenses/materials. A T&M SOW usually includes rate tables, time tracking rules, and a not-to-exceed cap (optional).

What should be included?

Include: scope, roles, hourly rates, billing increments, expense rules, approvals, reporting, assumptions, acceptance criteria (if any), and change control. This template includes each of these in plain language without using tables.

Can you include a budget cap?

Yes. Many T&M SOWs include a “not-to-exceed” amount and require written approval to go beyond it. This template includes an optional cap and a simple approval process.

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