A Work Statement Letter is a formal document outlining the scope and terms of work for a project. It contains the background details and subject of the assignment; the specific requirements, objectives, and tasks to be completed; the estimated timeline of completion; any budget information associated with the project; payment terms; liabilities; confidentiality considerations; and any other instructions or issues of which each party should be aware. With a clear and comprehensive Work Statement Letter, both parties have a better understanding of what is expected, reducing the risk of disagreement or miscommunication further down the line.