Stop losing money on
Machinist projects.
Vague verbal agreements lead to scrap bins full of expensive alloy and hours of unpaid machine time. Without a signed Scope of Work, you're one 'minor adjustment' away from a project becoming a total financial loss.
Pro Tip
Always include a 'Material Cost Escalation' clause that allows you to adjust pricing if the market price of raw metal increases by more than 5% between the quote and the purchase date.
Material Liability Discrepancies
If a client provides faulty or sub-standard raw material that causes tool breakage or machine downtime, you lose money unless the SOW explicitly shifts that risk back to the client.
Tolerance Ambiguity
If 'standard tolerances' aren't defined in writing, a client can reject an entire batch of parts based on arbitrary measurements, forcing you to eat the cost of material and labor.
Setup Fee Erosion
Clients often expect 'just one more part' without realizing the cost of teardown and setup; an SOW protects your setup fees for every unique production run.
Built from real freelance projects
This template is based on real-world scenarios across freelance projects where unclear scope, missing payment terms, and revision creep led to lost revenue. It is designed to protect your time, define expectations, and ensure you get paid.
What is a Machinist Scope of Work?
A Machinist Scope of Work is a technical contract that defines the manufacturing parameters of a project. It specifies part dimensions, tolerances, material sources, finishing requirements, and quantities. It serves to protect the machinist from unpaid changes, material defects, and disputes over part quality by setting clear, measurable standards.
Quick Summary
This Machinist Scope of Work template is a specialized tool designed to prevent profit loss in manufacturing. It addresses industry-specific challenges such as material traceability, tolerance standards, and setup fee protection. By clearly outlining deliverables like First Article Inspections and defining 'Out of Scope' items like CAD cleanup, the document ensures that machinists are compensated for their technical expertise and protects them from the high costs associated with scrap and machine downtime.
Why Machinists need a clear scope of work
For a machinist, precision is non-negotiable on the shop floor, and it should be equally precise in your contracts. A dedicated Scope of Work (SOW) serves as your technical and financial blueprint. It defines the exact 'First Article' approval process, specifies who is responsible for providing raw stock, and sets rigid boundaries on tolerances. Without this document, you risk 'tolerance creep,' where a client expects aerospace-grade finishes for a general-purpose price. It also protects you from liability regarding client-provided materials—if their stock is full of inclusions that break your end mills, a well-drafted SOW ensures they foot the bill for the tooling, not you. This document transforms you from a commodity service provider into a professional manufacturing partner.
Do you need an invoice or a contract?
Invoices help you get paid, but they do not define scope, revisions, or ownership. For most projects, professionals use both a contract and an invoice to protect their work and cash flow. MicroFreelanceHub bundles both into a single link.
Real-world scenario
Mike, a CNC shop owner, was hired to mill 500 aluminum brackets. The client sent a 'final' drawing, but mid-production, they sent a 'minor' update changing a hole diameter from 10mm to 10.5mm. Because Mike’s SOW explicitly stated that 'Production is based strictly on Drawing Rev B' and 'Any geometry changes post-approval require a $300 setup fee plus material costs,' he didn't have to argue. He paused the machine, sent a Change Order, and the client paid the $300 fee plus the cost of the scrapped aluminum. Without the SOW, Mike would have likely felt pressured to eat the $1,200 loss just to keep the client happy. Instead, the document acted as the 'bad guy,' and Mike kept his profit margins intact.
🛡️ What this scope of work covers:
- ✓Finished physical parts inspected to specified CAD/Blueprint tolerances.
- ✓First Article Inspection Report (FAIR) for initial run approval.
- ✓Material Traceability Certifications (MTRs) and Heat Treat reports.
- ✓Surface finishing documentation (e.g., Anodizing, Passivation, or Powder Coat certs).
- ✓Final Quality Assurance (QA) data and CMM measurement logs.
- ✓Custom jigs or fixtures specifically billed for the project (if applicable).
Pricing & Payment Strategy
Machining services should typically be quoted using a 'Setup Fee + Per Piece' structure. Ensure your SOW specifies a 'Minimum Shop Charge' for small batches. If you are handling the material procurement, include a 15-20% markup to cover the liability and handling of the stock. For R&D or prototyping where dimensions are fluid, consider an hourly 'Shop Time' rate (typically $75–$150/hr depending on the machine) rather than a fixed-fee per part.
Best practices for Machinists
Define 'Acceptable Scrap'
Clearly state that for client-provided material, a 5-10% scrap rate is standard for setup and testing.
Mandatory First Article Sign-off
Never run a full batch until the client has physically or digitally signed off on the first finished part's dimensions.
Project Overview
This section outlines the manufacturing objectives, identifying the specific parts to be machined, the intended application (if relevant for material choice), and the overarching goal of the production run.
Scope of Work
The machinist agrees to perform the following services:
- CNC Milling/Turning based on client-provided technical drawings and CAD files.
- Material procurement or preparation of client-supplied stock.
- Programing of toolpaths and selection of appropriate cutting tools.
- Deburring and cleaning of parts to remove sharp edges and coolant residue.
- In-process inspection to ensure dimensional stability throughout the run.
Deliverables
Upon completion, the following items will be provided to the client:
- The specified quantity of finished parts meeting the agreed-upon tolerances.
- First Article Inspection Report (FAIR) for client approval.
- Material Test Reports (MTRs) for traceability.
- Certificate of Conformance (CoC) stating parts meet all drawing specifications.
Timeline & Milestones
The project will follow this schedule:
- Milestone 1: Material Receipt and Tooling Arrival.
- Milestone 2: First Article Completion and Client Approval.
- Milestone 3: Full Production Run Completion.
- Milestone 4: Final Inspection and Shipping/Pickup.
Revisions Policy
Any changes to part geometry, material specifications, or tolerances after the 'First Article' sign-off will be treated as a new project. Revisions will incur a minimum setup fee of [Insert Amount] plus the cost of any additional materials or specialized tooling required.
Out of Scope
The following services are explicitly excluded from this agreement unless added via a signed Change Order:
- CAD design, file repair, or engineering consulting.
- Post-machining processes like heat treating, plating, or painting.
- Assembly of machined parts into larger components.
- Storage of finished parts for more than 10 business days post-completion.
Approval Process
Final approval occurs upon the client’s signature on the Final Inspection Report. Any discrepancies must be reported within 5 business days of delivery. Parts modified or used by the client after delivery are considered accepted and are no longer eligible for rework or refund.
Legal Disclaimer: MicroFreelanceHub is a software workflow tool, not a law firm. The templates and information provided on this website are for general informational purposes only and do not constitute legal advice.
Frequently Asked Questions
What happens if my machine breaks down during a job?
The SOW should include a 'Force Majeure' or equipment failure clause that allows for timeline extensions without financial penalty, provided you notify the client within 24 hours.
How do I handle 'tight' tolerances in an SOW?
Specify the exact +/- range. If the client cannot provide specs, state that you will default to 'Standard Shop Tolerances' (e.g., +/- .005) and that any tighter requirements require a price renegotiation.