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In this video tutorial, Thomas explains the concept of a Statement of Work (SOW) in project management. The SOW is a document that outlines the terms, objectives, scope, deliverables, timelines, and other expectations of a project or service contract. It serves as a guide for both the customer and the vendor, defining what needs to be done and ensuring clarity in the project's goals and requirements. The SOW is an essential document in project management, as it helps set expectations and establish a common understanding between all parties involved.