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Contractual jargon

A contractual lexicon.

Contractual documents

The contract flow can be seen as such:

Contract flow

  • NDA (Non-Disclosure Agreement)
    Before signing a contract, a NDA (Non-Disclosure-Agreement) is needed in most cases in order to save both sides interests.

  • MSA (Master Service Agreement)
    Defines how the two companies will do business together.

  • SOW (Statement of Work)
    Describes the work to be performed for the client. Note that the MSA defines the “how” and the SOW defines the “what” of the work.

  • CO (Change Order)
    Change Orders document any changes in scope, budget, timeline, assumptions or any other deviation from the current SOW.

  • PR/PO (Purchase Request/Purchase Order)
    Usually for bigger companies - in this case in most cases no MSA or SOW needed

You can read more here.