SOW TEMPLATE
BLACK FLAG DESIGN SOW · 01 / 06
STATEMENT OF WORK

{{CLIENT_NAME}}
× Black Flag
Design

This Statement of Work (“SOW”) is entered into between Black Flag Design, LLC (“BFD”) and {{CLIENT_LEGAL_NAME}} (“Client”) and is governed by the Master Services Agreement executed between the parties.

SOW NUMBER
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EFFECTIVE DATE
{{EFFECTIVE_DATE}}
ENGAGEMENT
{{ENGAGEMENT_TYPE}}
DURATION
{{DURATION}}
BLACK FLAG DESIGN SOW · 02 / 06 · OVERVIEW
01 · Engagement Overview

What we're building together

{{CLIENT_NAME}} has engaged Black Flag Design to {{ONE_LINE_OBJECTIVE}}. This SOW covers the design, engineering, and delivery of the work described below.

Objectives

  • {{OBJECTIVE_1}}
  • {{OBJECTIVE_2}}
  • {{OBJECTIVE_3}}

In Scope

  • {{IN_SCOPE_ITEM_1}}
  • {{IN_SCOPE_ITEM_2}}
  • {{IN_SCOPE_ITEM_3}}
  • {{IN_SCOPE_ITEM_4}}

Out of Scope

The following items are expressly not included in this SOW and, if required, will be addressed under a separate SOW or Change Order:

  • {{OUT_SCOPE_ITEM_1}}
  • {{OUT_SCOPE_ITEM_2}}
  • Ongoing production support, SLAs, and on-call operations after Final Acceptance
  • Third-party license fees, hosting, and infrastructure costs (paid directly by Client)
Note on AI models & providers. All work involving LLM providers (OpenAI, Anthropic, etc.) assumes Client maintains its own provider accounts. Token and inference costs are passed through at cost or billed directly to Client.
BLACK FLAG DESIGN SOW · 03 / 06 · PHASES
02 · Phases & Deliverables

How the work sequences

01

Discovery & Design

{{PHASE_1_DESCRIPTION}}

Deliverables: {{PHASE_1_DELIVERABLES}} · Duration: {{PHASE_1_WEEKS}} weeks

02

Prototype & Validate

{{PHASE_2_DESCRIPTION}}

Deliverables: {{PHASE_2_DELIVERABLES}} · Duration: {{PHASE_2_WEEKS}} weeks

03

Build & Integrate

{{PHASE_3_DESCRIPTION}}

Deliverables: {{PHASE_3_DELIVERABLES}} · Duration: {{PHASE_3_WEEKS}} weeks

04

Launch & Handoff

{{PHASE_4_DESCRIPTION}}

Deliverables: {{PHASE_4_DELIVERABLES}} · Duration: {{PHASE_4_WEEKS}} weeks

Acceptance Criteria

Each deliverable will be deemed accepted upon the earlier of (i) Client's written acceptance, or (ii) five (5) business days after delivery without written objection specifying a material deviation from the agreed specification.

BLACK FLAG DESIGN SOW · 04 / 06 · TEAM
03 · Team & Cadence

Who's on the pod and how we run

BFD Team

Engagement Lead
{{BFD_LEAD_NAME}}
Design
{{BFD_DESIGNER}}
Engineering
{{BFD_ENGINEERS}}
AI / Platform
{{BFD_AI_LEAD}}

Client Team

Executive Sponsor
{{CLIENT_SPONSOR}}
Product Owner
{{CLIENT_PM}}
Tech Point
{{CLIENT_TECH_POC}}
Decision-maker
{{CLIENT_APPROVER}}

Cadence

WEEKLY

Ship Review

Every Friday. 45 min. What shipped, what's next, what's blocked. Demo-driven.

BI-WEEKLY

Steering

Every other week. 30 min with Executive Sponsor. Scope, risk, priorities.

DAILY

Async Standup

Slack channel. Blockers, progress, decisions. No meeting required.

Client Responsibilities

  • Designate a single Decision-maker empowered to approve scope and deliverables.
  • Provide timely access to systems, repositories, data sources, and third-party tools required for the work.
  • Respond to blocking questions within two (2) business days.
  • Maintain Client-owned accounts for LLM providers, hosting, and third-party integrations.
  • Participate in the weekly Ship Review.
BLACK FLAG DESIGN SOW · 05 / 06 · FEES
04 · Fees & Payment

What it costs and when it's paid

Fees are stated in U.S. dollars and are exclusive of taxes. Payment terms are Net 15 from invoice date. Invoices are issued electronically to {{CLIENT_AP_EMAIL}}.

Line Item Description Amount
Phase 01 — Discovery & Design Invoiced on execution of this SOW. ${{PHASE_1_FEE}}
Phase 02 — Prototype & Validate Invoiced on completion of Phase 01 acceptance. ${{PHASE_2_FEE}}
Phase 03 — Build & Integrate Invoiced in two equal installments during Phase 03. ${{PHASE_3_FEE}}
Phase 04 — Launch & Handoff Invoiced on Final Acceptance. ${{PHASE_4_FEE}}
Total Fixed Fee ${{TOTAL_FEE}}

Expenses & Pass-Throughs

Pre-approved travel and material expenses are billed at cost with documentation. Third-party costs (LLM inference, hosting, licenses, design tool seats) are paid directly by Client.

Change Orders

Any material change to scope, timeline, or team composition will be captured in a written Change Order signed by both parties before execution. Change Orders are billed at ${{HOURLY_RATE}}/hour unless otherwise agreed.

Late Payment

Invoices unpaid beyond thirty (30) days from issue date accrue interest at 1.5% per month or the maximum rate permitted by law, whichever is lower. BFD may pause work on any unpaid invoice beyond forty-five (45) days.

Sprint engagements (fixed 2–3 week discovery pushes) are billed as a single milestone at execution. Alpha and Beta engagements follow the phase structure above.
BLACK FLAG DESIGN SOW · 06 / 06 · TERMS
05 · Terms

The usual and necessary

Ownership & IP

On receipt of full payment, Client owns all custom code, designs, and deliverables produced under this SOW. BFD retains ownership of its pre-existing tools, libraries, and methodologies, and grants Client a perpetual, non-exclusive license to use them as embedded in the deliverables.

Confidentiality

Each party will protect the other's Confidential Information with the same care it uses for its own, and in no event less than a reasonable standard. Obligations survive termination for three (3) years.

Data & Security

BFD will handle Client data in accordance with the security posture detailed in the associated Security Appendix. Production access is granted on a least-privilege basis and revoked within two (2) business days of engagement end.

Warranty

BFD warrants that the deliverables will conform materially to the specifications for thirty (30) days following Final Acceptance. Remedy is re-performance of non-conforming work.

Termination

Either party may terminate this SOW for convenience on fifteen (15) days' written notice. Upon termination, Client pays for all work completed and in-progress through the termination date; BFD delivers all work product in its then-current state.

Governing Terms

This SOW incorporates the Master Services Agreement executed between the parties. In the event of conflict between this SOW and the MSA, the MSA controls except where this SOW expressly states otherwise.

For Black Flag Design, LLC
{{BFD_SIGNATORY_NAME}}
{{BFD_SIGNATORY_TITLE}} · Black Flag Design
DATE: ______________
For {{CLIENT_LEGAL_NAME}}
{{CLIENT_SIGNATORY_NAME}}
{{CLIENT_SIGNATORY_TITLE}}
DATE: ______________