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The video tutorial discusses the concept of a Statement of Work (SOW) in project management, specifically within the PMBOK or PMI framework. It explains that an SOW is a document that outlines the terms and objectives of a project or service contract, including deliverables, timelines, and expectations. The SOW is crucial in defining the scope of work between the customer and the vendor. Essentially, the SOW is a document that specifies what needs to be done and agreed upon by both parties.