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Professor K discusses the importance of developing a statement of work in project management. This document outlines project work requirements, including timelines, specific services, deliverables, and budgetary information. It ensures that all parties involved in a pen test understand what is included and not included in the project. The statement of work is the final agreement between you and the client before starting work, defining deliverables and responsibilities. Key components include the scope of work, schedule, and budget.