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The video tutorial discusses the importance of a Statement of Work (SOW) in project management, specifically in relation to the Project Management Body of Knowledge (PMBOK) or Project Management Institute (PMI). The SOW is a document that outlines the terms and objectives of a project or service contract, including scope of work, deliverables, timelines, and expectations. It serves as a communication tool between customer and vendor, defining what needs to be done. The SOW is essentially a document that defines the scope of work and responsibilities between the customer and vendor.