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In this video, Thomas explains the importance of a Statement of Work (SOW) in project management, particularly in the context of PMBOK or PMI. The SOW is a document that outlines the terms and objectives of a project or service contract, including the scope of work, deliverables, timelines, and expectations. It serves as a guide for the customer and vendor to understand what needs to be done and what is expected in the project. The SOW essentially defines the responsibilities and goals in a clear and detailed manner.