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In this video, Professor K explains the importance of developing a Statement of Work in project management. The Statement of Work outlines project requirements, timelines, services, activities, deliverables, and budget information. It ensures clarity on what is included and excluded in the project. This document is the final agreement between you and the client before starting work, defining deliverables and responsibilities. The Statement of Work should be the first step when working with stakeholders on a project. It includes the scope of work, schedule, and responsibilities.