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In this YouTube tutorial, Thomas Suit explains the concept of a Statement of Work (SOW) in project management. 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 both the customer and the vendor to understand what needs to be done. The SOW is essential in defining the project's requirements and ensuring clarity between all parties involved.