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The statement of work, also known as SOW, is a document that outlines the terms and objectives of a project or service contract. It includes the scope of work, deliverables, timelines, and other expectations between the customer and the vendor. This definition is crucial in project management practices according to PMBOK or PMI standards. The SOW acts as a guide for both parties to understand what needs to be done and achieved in the project. It serves as a mutual agreement on the tasks and goals to be completed.