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The statement of work (SOW) is a document that outlines the terms and objectives of a project or service contract, including the scope of work, deliverables, timelines, and expectations. It serves as a means of defining the agreement between the customer and the vendor by specifying what needs to be done. The SOW is crucial for project management and is a key component in the PMBOK or PMI. It essentially delineates the tasks and responsibilities of both parties involved in the project.