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The statement of work (SOW) is a document that outlines the terms and objectives of a project or service contract, including scope of work, deliverables, timelines, and expectations. It acts as a defining document between the customer and the vendor, detailing what needs to be done. The SOW is crucial in project management, guided by PMBOK or PMI. It essentially lays out what the customer wants and what needs to be done to meet those objectives.