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The statement of work, commonly referred to as SOW, is a crucial document in project management according to PMBOK or PMI. It describes the terms and objectives of a project or service contract, including the scope of work, deliverables, timelines, and other expectations. It serves as a guide for both the customer and the vendor, outlining what needs to be done in a project. The SOW essentially defines the scope of work and responsibilities between the parties involved.