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The video tutorial discusses the concept of the Statement of Work (SOW) in project management, specifically within the PMBOK or PMI framework. The SOW is a document that outlines the terms, objectives, scope of work, deliverables, timelines, and expectations of a project or service contract. It serves as a communication tool between the customer and vendor, defining what needs to be done. The SOW is essential for ensuring clarity and understanding of project requirements and responsibilities.